Any property, whether commercial or residential can be a great way to grow your money. It is advisable to know and understand the ins and outs of both before planning any investment. However, investing in a commercial property in a good location can always give you a better, stable and secured rental returns as compared to a residential unit. The cherry on top would be a rewarding & faster property appreciation. Basically, commercial property is always rated as a better investment option than a residential one. To know why, please read on!
In the recent times, Pune has evolved as one of the prominent markets to invest in commercial property. A large number of locations in Pune are developing & growing as business hubs and industrial sectors. The strategic location of the city and a plethora of opportunities which this city provides has captivated the interest of a large amount of corporate houses, eminent organizations and IT industries to set up small and large office spaces.
Types of commercial property
- Retail property – including shopping centers, supermarkets, storage warehouse, and high street shops
- Office property – purpose-built for businesses, these often require installation of high speed internet and other services essential to businesses
- Industrial property – such as industrial estates, manufacturing units and warehouses.
Why is commercial property a good investment?
Investing in a commercial space requires a larger investment than a residential space and this is why commercial real estate has been traditionally perceived as an asset class where only high net-worth individuals (HNIs) or institutional investors can participate.
However to break this belief, a new format is being offered by a lot of developers, allowing residential investors to get into commercial real estate by offering them smaller units like shops, small offices, showrooms, etc., These projects offers world-class infrastructure for smaller firms, traders, doctors, law firms, accounting firms, etc.
A commercial property benefits greatly from a longer lease structure. Typical lease length for an office space is between 5 and 10 years.
Amenities at commercial property for better rentals
In order to expect good rental yield, the commercial property must offer convenient amenities such as,
- parking space
- backup power supply for lifts
- fire safety measures
- good quality of electrical wiring & fitments in the offices, etc.,
A commercial property with good infrastructure and convenient amenities always attracts the end user.
Investing in a commercial property in Pune
Over the years, Pune has become one of the biggest start-up hubs who often prefer small office space in a good commercial center. Pune is also among the top cities that saw a good demand and supply for commercial properties in India.
- The assets are generally secured by leases which provides a regular income and are significantly higher.
- In Pune one can expect an annual rental yield ranging between 7 % – 9 %.
- By wisely choosing the location and structure quality one can be assured that it will always have the potential to offer much more than what it was bought for. And the appreciation time can be as low as 2-3 years depending upon the location
Due to its close proximity with Mumbai, Pune is now home to various commercial sectors such as Manufacturing, Banking, Financial services and Insurance (BFSI), consulting, telecom and infrastructure. The growing demand for quality offices has led to the development of new locations in the peripheries and suburbs.
Pune is now one of the important destinations on the Indian office market map mainly because of its large number of young and qualified population and presence of renowned educational institutes.
There are many IT/ITeS, engineering and manufacturing companies seeking for large offices in Pune, similarly there are several Start-ups and other small & medium sized companies also willing to set up businesses. Hence, there is a demand for both large and small office spaces.
Prime locations in Pune offering quality commercial spaces:
- East – Kalyani Nagar, Koregaon Park, Yerwada, Airport Road, Vishrantwadi, Kharadi, Magarpatta
- West – Hinjewadi, Aundh, Wakad, Talawade, Pimple Saudagar, Baner, Talegaon, Pirangut
- Central – MG Road, JM Road, Shivajinagar FC Road, Bund Garden, Dhole Patil Road, Boat Club Road, Deccan Gymkhana
- North – Chakan, Ranjangaon, PCMC, Bhosari,
- South – Phursungi, Wanowrie, etc.,
These locations are well-connected with other parts of the city that make them attractive commercial investment destinations.
Prime Locations with Average Rental, Average Capital Value & Average Annual Returns
CBD – Central Business District | SBD – Secondary Business District | PBD – Peripheral Business District
|Business District||Locations||Monthly Rental INR/Sq.Ft.||Capital Value INR/Sq.Ft.||Annual Returns|
|CBD & Off-CBD||Bund Garden Road, SB Road, Camp, Deccan, Pune Station Road.||65-75K||8,600 - 10,100||9%|
|SBD East||Kalyaninagar, Vimanagar, Yerwada, Nagar Road, Vishrantwadi||50-62K||6,650 - 8,300||14%|
|PBD East||Hadapsar, Kharadi, Phursungi, Wanowrie.||37-53K||5,000 - 7,000||12%|
|SBD West||Wakdewadi, Aundh, Baner, Kothrud, University Road.||44-59K||5,900 - 7,800||10%|
|PBD West||Hinjewadi, Bavdhan, Wakad, Balewadi.||38-50K||5,050 - 6,650||12%|
|SBD North & South||Pimpri, Chinchwad, Bhosari, Bibvewadi, Satara Road||32-43K||4,300 - 5,750||9%|
Source : http://www.businesstoday.in/moneytoday/cover-story/invest-in-office-space-to-diversify-real-estate-portfolio/story/198000.html
There is a rapid growth in the development of commercial property in Pune. Commercial property by reputed developers stands as a great investment option.
Prominent Commercial Properties available in Pune:
- Gera Imperium in Hinjewadi
- Kolte Patil Commercial Space in Wakad
- Solitaire Business Hub in Baner
- Solitaire Business Hub in Yerwada, etc.
Hinjewadi, Vimannagar, Hadapsar and Magarpatta being some of the most preferred choices for office space by start-ups as well as major corporate, offers maximum options of commercial property in these locations.
The latest commercial spaces in Pune are designed to offer a work-life balance that executes modern services and amenities without compromising on aesthetic and design. These commercial properties are much ahead of the time, assembling the finest and prominent modern infrastructure.
Prime Location, modern infrastructure and convenient amenities are the top checklist to consider before investing in a commercial space in Pune essential to rise the bar of your income for an extended period of time.