By Soniya Gaonkar on May 6, 2022 5:04:05 PM
They say never keep all your apples in the same basket. While that holds true in the case of stock market investments, the logic applies in the case of real investments as well. One of the keys to optimizing your returns from real estate investments and minimizing risk is diversifying your investment. Diversification refers to investing in various commercial real estate avenues rather than relying on one. Here are some tips concerning it.
5 Best Ways to Invest in Pune Commercial Properties in 2023
Diversification requires quite a bit of effort in researching the various options available, their financial viability in your case, and their investment and return potential. Fortunately, unlike in the olden days, you have many options today. You can leverage them to maximize returns and reduce the risk that market and demand fluctuations may bring.
Office spaces or shops are among the most popular commercial real estate investment options. Accordingly, you can look for office spaces based on the area and the businesses that thrive there. For instance, if a particular location is more suitable for office spaces, you may study the trend and its future to buy an office space.
On the other hand, if the area is near a residential hub, you may research and invest in a retail space. Looking to the future can also help you make a sustainable choice.
There’s something called passive income in real estate. As the name implies, passive income refers to earning through real estate assets where the real estate investor is not actively involved. You let your money work for you and achieve financial freedom.
So, when you plan to earn passive income, you are likely to approach various investment firms. But when you do so, you must study the investment firm’s performance history and to what extent it has been fulfilling its commitment to returns.
Here, you can look for the IRR mentioned on every asset that the firm lists and understand the logic of returns each one derives. You must choose to invest with three to four different firms. For instance, if you invest INR 50 lakh, you may distribute them among various firms based on their potential, the type of assets they invest, and the returns they generate.
Industrial Spaces/ Floors
Industrial spaces are another lucrative commercial real estate investment option in Pune. You may invest in industrial spaces, warehouses, floors, etc., and rent or lease them out to manufacturing units or companies that require them.
Pune is one of the most significant industrial hubs in India. The city has been a bustling industrial area for decades. Accordingly, buying a space in any industrial areas in and around Pune like Bhosari, Pimpri, Talegaon, Chakan, Pirangut, Markal, Talwade, etc., can potentially be a remunerative investment alternative.
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As the name suggests, you can use or let use a mixed space for various purposes. For example, you can rent out the space to a warehouse or lease it to a manufacturing company to let them use it as their shop floor.
However, the location of the space obviously matters. The above applies to properties in an industrial area. But For instance, if your property is in the financial district, you can rent it out to a bank or a company for its corporate office. On the other hand, if the commercial property is on the ground floor, you may give it to a restauranteur.
One of the advantages of mixed-use spaces is that they are less likely to remain vacant for a long time. You can tap a broad array of potential tenants to earn income from the property. Additionally, if the space is large enough, you may rent it out to multiple tenants (creating a co-working space), thus multiplying returns from a single space.
Multiple Property Classes
Commercial properties are classified as Grade A, Grade B, Grade, and Grad D. So, you may also choose to invest in multiple property classes, depending on your investment capacity.
Grade A properties are brand new and located at a prime location. However, not all properties are brand new. Some may be six to seven years old as well. Nevertheless, Grade A properties are less risky than other categories and offer higher returns.
Grade B properties are a bit older – around seven to 12 years or a bit more. Although they aren’t located at a prime location, their location is advantageous enough for businesses to thrive. The rents of these properties are lesser than Grade A.
Grade C properties are significantly old – as much as 20 to 25 years. So, although the price of these properties may be substantially less, their returns, too, wouldn’t be as promising.
Furthermore, you have Grade D properties that are the riskiest of all. They are uncertain concerning returns. You might benefit from a boom or doom your investments with these properties. So, you must think many times before investing in them.
Grade A High Potential Commercial Offices Near Pune at Kohinoor World Towers
Kohinoor World Towers is a massive upcoming commercial center near Pune in Pimpri Chinchwad. KWT offers Grade A multi-sized and multipurpose spaces for retail, corporate offices, fitness centers, banks, etc. The business hub is strategically located between Pimpri and Chinchwad and offers excellent connectivity, accessibility, and business potential.
To know more about KWT, call +91 20 6764 1818.