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10 Factors to Consider before Purchasing Commercial Property in India

With the rising growth of the country’s population, the demand for commercial real estate India has also substantially increased. This is why investing in commercial properties can assist you to yield high returns on investment. Buying commercial real estate is not as complicated as it might look. 

You need to consider some of these commercial property tips before finalizing them for purchase: 

Market Research

When you start the process to buy a commercial property in Pune, you need to spend some time analyzing the trends of the market well in order to acquire a profit. Before you purchase a property, it is vital to assess the scope of the future development in the locality. When you invest in a project in a developing area, it is more lucrative as it provides you high returns on investment as compared to purchasing a property in a well-developed area. 

Assess the Location

Location is a significant factor that needs to be factored into while you buy commercial property Bengaluru. The location needs to be accessible from other locations with a robust infrastructure. If you purchase a property in a premium location, it is sure to guarantee high returns on your investment. 

Types of Commercial Properties 

Commercial real estate comprises industrial complexes, retail shops, big apartment buildings, office buildings, and many more. When you have decided to dabble into commercial property buying, you need to determine the kind of real estate you would want to deal with. 

Evaluate the Layout Plan 

The layout has a chief impact on operational efficiency. Ensure that the project has been given all the approvals from the concerned authority so that you don’t end up making any incorrect investment decisions. 

Lease Structure 

This lease is a long-term contract between the owner of the commercial space and the occupier. While assessing an investment, the tenant needs to comprehend the lease structure and the risk involved in the investment. 

Pick the Appropriate Builder 

While you invest in a commercial property, ensure that you choose a well-respected building with a proven track record of successfully completed projects. You need to cross-check and verify the credibility of the builder before you finalize and zero in on a commercial property. 

Recognize the Element of Risk

Prior to purchasing any commercial property, you need to keep in mind all the possible risk factors. Monitor the market trends, the geographical location, and the building’s history to assess the risk involved in purchasing the commercial property. 

Value Assessment 

Examine the value of similar properties in the proximity and amass information on the types of rents that other properties have so that you can negotiate well with the seller. In order to make a good commercial deal, negotiation is significant. 

Evaluate the Rental Earnings Post Tax and Insurance 

Assess the earnings that you will make after you pay for the tax and insurance to understand how much you can earn on a yearly basis after subtracting all these expenses. It will help you to understand what your investment will look like in the future. 

Quality of Tenant 

A good-quality tenant can help to considerably increase the value of a commercial property. Good tenants pay rents on time, pay higher deposits, stay longer, and help boost the value of the property. 

At CRE Matrix, you will be able to look at a number of commercial properties and the comparables in the market that can help you make a decision. 

Visit CRE Matrix for more such exciting analysis and details on real estate.

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Checklist before Leasing Commercial Property in India

When you lease a commercial space, it is not the same process as renting a residential home. Be it the monthly payments or the security amount and the tenure, commercial leasing in India differs significantly from residential renting. CRE Matrix is a real estate data analytics firm that lets stakeholders take a look at the many commercial spaces that have been leased and compare it with others in the market. 

When you’re leasing commercial property, do keep in mind that residential rentals are lesser as compared to commercial ones. Moreover, commercial leases are for a longer time period that can range up to five years or more. However, residential rentals are typically for 11 months. While in both the scenarios, the tenant or the lessee rents a property and pays monthly rentals, you will find that the terms and conditions are quite different. Therefore, the relevant question here is how one should go about leasing a commercial property in India. 

Pointers to Consider before Leasing Commercial Properties 

Property Ownership: The first step includes inspecting if the project is legally owned by the lessor and has a clear title.Moreover, you need to check if there is a ‘no rent or sublet’ connected to the property before signing the leasing agreement. Make sure you also look for the Occupancy Certificate (OC) and the Power of Attorney (PoA). 

Rent Agreement: The next step is to examine whether the leasing agreement is suitable for you or not.Make sure that all the terms and conditions that were discussed verbally are laid out in the contract.Every single significant detail such as lease duration, security deposit, etc. needs to be declared in the agreement. Furthermore, the lease agreement needs to be duly signed by all the parties. 

Mortgage & Taxes: In the subsequent step, you need to authenticate the income tax status of the lessor. When you look at a commercial property for lease, make sure to confirm if there are any dues unpaid or legal encumbrances. Moreover, it is important to verify the category of the property under the Income Tax Act. It is critical to know whether it is a commercial or residential property according to the Development Control Regulations. The penalty could be levied in case you operate commercial procedures in a residential space. 

Agents: It is vital to carry out background checks on property agents and dealers before you appoint them. Take to the preceding clients about their work experience with the broker, the duration is taken to close the deal, and the charges levied. If the agents are apprehensive about letting you contact their ex-clients, it clearly suggests that they are hiding something. Therefore, it would be wise to avoid such types of agents. 

To sum up, this is the checklist that needs to be followed before you look at leasing some of the best commercial properties India. 

CRE Matrix is a premier real estate data analytics company India that allows stakeholders across various industries to compare commercial leasing data with other companies in the market.

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Should You Purchase or Lease Commercial Space in India?

If you’re planning to move from your existing property and conduct your business in a new space, you may be plagued with the dilemma of whether to purchase or rent out the new place. The estimated development, income, and legal needs of your business ought to be considered when you take this decision.

Buying a property will help you in saving on the rental charges over a timespan and also gain from any rise in property prices but the initial financial need will be a lot more when compared to renting a unit.

When you look at the best commercial properties India, take the time out to compare the benefits of leasing a commercial space vs. buying a property: 

Advantages of leasing a commercial space

Cash Flow: If you look at it completely from the outlook of cash flow, acquiring commercial space for rent is better when compared to buying it. If you’re relatively new to doing business then you might want to opt for leasing space as opposed to purchasing it. In the case of rental, your initial monetary outgo will be restricted to the security deposit and the first month’s rent. When it comes to purchasing, you will have to pay the entire price of the property, or at least, the down payment needed for a loan, which is usually quite high. 

Maintenance of the Property: In numerous scenarios, the duty of maintaining the property falls on the landlord. If you don’t want to spend your time and money on periodic maintenance and wish to focus on your main business, then leasing may be a better choice. The costs connected to maintenance are lesser when it comes to Commercial space for lease India. If you buy the property, there could be expenditures related to taking care of the structural soundness of the building, apart from the day-to-day maintenance to repairs. 

Pros of Buying a Commercial Property 

Control over the Property: If you plan on revamping the property, then it’s necessary to have control over it. When you buy commercial space, it can help you to have flexible business hours or allow you to conduct your business in some other way as compared to how you were working on it initially. 

Rise in Land Value: If you wish to shift to a location where land rates are surging and property prices are heading towards an upwards trajectory, then purchasing commercial property makes more sense. The worth of a property may go higher thanks to the improving physical and social infrastructure in the region, or better demographics. 

Regardless of the reason, it would work better for you if you detect such trends early when the rates are not that high. If you buy a property in such a place, you can gain from any escalation in the value of the property, apart from saving on rental outgo. 

In a nutshell, whether you choose to lease or buy commercial space, both the options have their pros and cons. At CRE Matrix, you will be able to take a look at several commercial properties and in-depth leasing data that can help you make a decision. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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5 Ways to Apply Data Science to Commercial Real Estate in India

The commercial real estate sector in India is on its way to slowly bounce back and recovering in a post-pandemic world. The start of 2022 has unlocked many potentials and scopes of the commercial real estate industry in this country. Increasing demand for appropriate workspaces, commercial properties, and creative concepts in this industry will aid in powerful development. 

With the commercial real estate sector almost returning to its pre-Covid levels, data has become an extremely vital ‘raw material’ of the industry today. Data science has evolved into a separate study thanks to its importance in contributing to the growth of the real estate market. 

Real estate data analytics companies make use of advanced-level analytics and machine learning models to assess information that helps in making better decisions. With its assistance, you can understand consumer behavior, business strategies can be improved, promising market trends can be weighed and any predicted risks can be tactfully averted and dealt with. 

Let’s take a look at how data science can bring about major changes in the commercial real estate sector by helping professionals make well-informed decisions. 

  • Evaluating Data to Estimate Market Trends

Commercial real estate data analytics can assist in predicting property market trends and any risks that might come up in the investment. By using data that comprises a combination of various variables and predictive analysis; it can assess how consumer groups have been behaving over the years, what kind of properties are in demand, the type of leisure activities that consumers like, and how the rent charges have evolved over time. These factors play a huge role in deciding how well or poorly an investment would be able to perform. 

  • Creating the Property Price Indices 

One of the most vital applications of data for commercial real estate is to gather and leverage details connected to the adjoining local areas. Qualitative and quantitative variables play a role in influencing the pricing of commercial properties. Moreover, these elements also work to provide us with a fair idea of which areas might emerge as popular in the future. 

  • Comprehending Performance of Investments 

In the real estate sector, no two properties can be similar. Variables are different even with properties that exist in the same building, not to mention the fluctuating value of properties over time. The evolving rate of an asset, pertaining to the lifecycle and current/future infrastructure, can be traced over the years by making use of data science in this field. 

  • Recognizing & Segregating Leads 

A great way to leverage the power of data science in commercial real estate is to nurture leads. Generally, it is tough for agents to follow up on all the leads that are generated from the many online and offline marketing campaigns. Nevertheless, real estate data providers who have relevant applications and software can provide a ‘seller or buyer score’ to leads that are more likely to sell or purchase properties. This evaluation is made by assessing elements such as demographics, income changes, and buying behavior. 

  • Gauging Profitability of Investment & Construction 

If you’re planning to invest in a commercial real estate space, location intelligence is an extremely significant feature to measure whether the investment would be able to deliver the anticipated profits in the future. Data science in real estate can also prove to be useful to assess environmental conditions so as to finalize a suitable time for the commencement of the construction activities. 

CRE Matrix is India’s best real estate data analytics company that uses data science to help stakeholders across various sectors to assess and compare leasing data and more. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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What are the Different Types of Commercial Leases in India?

When you think about leasing a big commercial space, you should be fully prepared mentally as it’s a huge undertaking that requires massive monetary investments. When you rent a business space for the first time; it is not only essential to research the market well but also to have relatively good knowledge about the types of commercial leases that can be availed in India. 

In this country, commercial real estate leases are typically term-based. The contract expires after a specific amount of time. In older days, the leases used to be permanent and ever-lasting. Nevertheless, given the current market scenario, and the steep rise in property rates, the picture is not quite the same anymore. 

In India, you will find three basic kinds of commercial real estate leases. While the terminologies may change from place to place, having a fair idea about the concepts could help you to negotiate the best possible deal. 

Here are the three types of commercial leases India:

Gross Lease

Also referred to as a full-service lease, it is the kind of lease where the landlord is required to pay for all the property-related expenses out of the rent given by the tenant. The list of such expenditures comprises insurance, maintenance, and taxes. 

While the landlord is fully accountable for the building, the tenant’s job is to fully focus on the business. It is mostly used for multi-tenant buildings. 

The biggest benefit is that tenants don’t have to be concerned about paying for taxes, insurance, or maintenance. The lease contract states the entire expenses of leasing the commercial space and also the conditions under which the prices may increase in the future. 

Net Lease 

A net lease is a commercial real estate lease wherein tenants not only have to pay for the space they have occupied but also have a contractual agreement where the lessee has to pay a part or all of the taxes, insurance fees, and maintenance expenses for a property apart from the basic rent.  

The net lease comprises of single net lease, double net lease, and triple net lease. One of the main benefits of the net lease is that tenants can regulate their expenses in a better manner by monitoring how utilities are used. They are required to only pay for the actual property tax and the amount for maintenance. If there is no need for extensive maintenance or if the property taxes fall, they may be able to save some money. 

Modified Gross Lease 

Even though it bears resemblance to gross lease, there are some differences. Although the rent is given in a lump sum, there is still some compromise that can happen between the parties. The parties to the agreement can negotiate the expenses which can be integrated into the base rental price. 

Additionally, the costs like the janitorial services and electricity are not included in this list. Since the modified gross lease is tenant-friendly, it seems to be the most popular among tenants. Corporates largely favor modified gross leases over others since they are not accountable for the maintenance of office buildings. 

In a nutshell, when it comes to commercial real estate leasing, each type has its pros and cons. You need to decide on what is the most suitable for your business based on your budget. 

CRE Matrix is India’s preferred real estate data analytics provider. It allows stakeholders across an array of sectors to have the opportunity to see the commercial leasing data of various companies. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Grading Office Buildings in India – Our 4 Parameters

How does India grade it’s office buildings? Is there a formula to this? Why one office building may be A+ in grading and still command a rental lower than a grade A building? All this and a lowdown on how CRE Matrix grades office buildings across India.

Office space is crucial for any firm’s development as the workspace environment plays a vital role in the employee’s mental health and wellbeing. The quality of the physical workplace setting has a powerful sway on the company’s capability to both recruits as well as retail employees. 

Since the work environment is extremely important, companies are now looking out for appropriate and best office spaces in India that can keep their employees satisfied. Happy employees can help reap profits for the business. It is observed that more and more companies in India are becoming very particular about the kind of office space they want in a specific type of commercial building. 

India is filled with different kinds of commercial buildings in any city. If you’re considering taking up office space for your company, you would have many options to consider based on your preferences and budget. The location is one of the many factors that need to be kept in mind before taking up office space in a building. 

Some of the other parameters are the age of the building, amenities offered, parking, design of the building, and so forth. It is based on these criteria that commercial buildings in this country may be categorized as Grade A building, Grade B building, and Grade C building. These classifications may help to determine the rents of the buildings. 

Let us look at the various parameters that help classify the office buildings India:

Amenities 

Grade A buildings are bestowed with the specific grade because they come with a lot of high-quality amenities. They feature facilities such as fire prevention systems, fire-management systems, earthquake-resistant structures, and so forth. Grade A office building Mumbai will have a cutting-edge HVAC (Heating Ventilation, Air Conditioning), extremely safe elevators, and state-of-the-art concierge services. The utilities such as water and electricity are exceptionally effective. These buildings usually house a cafeteria, food court, restaurants, ATMs, coffee shops, and so forth. 

On the other hand, a Grade B office building will have elevators that work well but are not considered to be superior quality. Water and electricity systems are not deemed to be extremely effective. Many may not even come with features such as earthquake-resistant structures and waste recycling units. As for Grade C office buildings, they barely have any amenities. In India, you will not find any lobby area or even elevators. 

Location

Grade A buildings are typically located in the heart of central business districts. In metropolitan cities such as Mumbai or Bengaluru, they are more likely to have enormous open spaces or some kind of greenery landscape that adds to the beauty of the building. Grade B buildings are not so centrally located but manage to have a decent location. Grade C buildings are not perched in busy commercial hubs and can be located in any lane or road. 

Parking 

Grade A buildings have professional management and have adequate parking for every corporate tenant, their employees, and their guests who could visit occasionally. Grade B buildings generally compromise on factors like security and parking. They will have enough for the employees of the corporate tenants but not extend it to their guests. Grade C office building MMR will not have enough parking spaces to fit vehicles of all employees of their corporate tenants. 

Architecture 

Grade A office buildings are typically architectural marvels and extremely posh and upscale in their looks. These buildings are typically newly built and have the necessary infrastructure in place. Grade B buildings are usually older than Grade A buildings and are not as shiny and glitzy as the former. Grade C buildings are usually the oldest as compared to the other two and typically need a lot of repair work. 

We deploy 5 other parameters which form our secret sauce to grade buildings. To know more, sign up with us and we’ll take you through how we grade buildings using artificial intelligence, machine learning and a lot of human intelligence.

CRE Matrix is India’s preferred real estate data analytics platform. We can provide stakeholders with every minute detail about a commercial building including its grading. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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CRE Matrix Attends Midday BDA Expo 2022

CRE Matrix was proud to attend the Midday BDA Expo 2022 which is currently ongoing from 15th to 17th April 2022. Our CEO, Abhishek Kiran Gupta was invited as a special guest to speak on the importance of data analysis in the real estate sector at the first-panel discussion at the conclave on Day 1. 

Abhishek Kiran Gupta

Key Highlights from the Panel Discussion: 

  1. Abhishek Kiran Gupta opined that data is central to decision-making for better project design, improved project development, enhanced broking by advisers, better lending opportunities by banks, higher-quality investments by investors, and so forth. 
  2. Abhishek Kiran Gupta shared that the youth in the real estate industry have multiple choices to shape their career from development to broking to research & advisory to finance to fractional ownership and so on. 
  3. Abhishek Kiran Gupta advised all young entrepreneurs with start-up ideas to focus on building sustainable and profitable businesses and not pursue valuations and quick exits. 

Key Highlights from the Expo:

CRE Matrix visited over a dozen developer booths and spoke extensively with key sales representatives. 

  1. The event showcased housing sales of 15 apartments on day 1 till 4 pm. 
  2. The majority of the projects highlighted at the expo were from the Western Suburbs Macro-markets between Andheri to Dahisar. 
  3. Most projects were redevelopment or slum rehab projects. The event demonstrated a couple of FREEHOLD land projects as well. 
  4. It was very promising to witness the JDA/JV/Joint projects between developers. The Western Suburbs market developers appear to be very cordial with each other and display healthy competition with each other. 
  5. There has been a slowdown in housing inquiries and housing sales post a rise in stamp duty rates by 1% in Mumbai. However, the sales team believes home buyers will have to adjust to this new reality.
  6. Developers humbly articulated that they are most likely increasing home prices in mature projects citing a rise in raw material prices. 
  7. We were extremely impressed to witness that several developers have opted to tie up with brokers on Mandate sales wherein brokers exclusively market these projects directly through social media or mobilizing channel partners.

Our CEO Abhishek Kiran Gupta was honored to attend the real estate conclave and be able to share his wisdom. The 3-day Midday BDA Expo 2022 will conclude on 17th April. So, if you haven’t visited yet, now is the time to check it out! 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Co-Working Spaces – The New Work Culture Gripping the Nation

What is co-working? As remote work and hybrid work continue to increase in popularity, more and more people are asking the question, what exactly is a co-working space? Generally speaking, co-working is when several people from different companies share an office space, thereby allowing for cost savings and convenience via the use of common infrastructures, like equipment, utilities, receptionists, and custodial services. 

Co-working spaces deliver the same amenities you would find in a conventional office, along with a lot more. A chief differentiator is basically the flexibility since you don’t have to sign a long-term lease in a co-working space. 

Decoding the Immense Popularity of Co-working Culture 

Over time, co-working has been slowly but surely revolutionizing the work culture across the globe and has become popular in India as well. As the demand for shared office spaces rose throughout the country, it was felt more significantly in category A cities as compared to other cities in India. The rise of start-ups and a new generation of workers who favor a flexible work environment led to the trend for a co-working culture in these cities. 

Here are a couple of reasons why a co-working work environment is trending in India:

Cost-Effective Alternative to Renting and Leasing 

Thanks to the rapid rise in the rates of commercial spaces across India, it has become extremely expensive for a company of any size to lease a conventional office in an urban area. In such a scenario, co-working works as a breath of fresh air. To lease a conventional office, you will have to fork out a fixed initial amount that comprises a refundable deposit, advance maintenance charge, and other expenses for necessary entities. 

But if you choose a co-working space in Mumbai, all you will need to do is pay for a small monthly rent for your seat. This rent will be significantly lower compared to the monthly rent of your conventional office. Moreover, you will be able to use many amenities such as meeting rooms, printers, and so forth, at a reasonable rate or no additional cost. 

Preference of Flexibility

In recent times, there has been a change in the way office-goers are expected to go to work. Flexible timings and a more laid-back work environment have more or less become the norm. Offices that are able to offer such a setting are succeeding at keeping their attrition rate low. 

A simple and effective way to attain this goal is to choose co-working spaces. Just stroll into any co-working space in India, and you will witness vibrant colorful interiors that will give you a welcoming feel. Usually, a bright environment can lead to a rise in productivity and efficiency on part of the employees. 

Scalability Issue 

One of the major reasons why conventional offices are not as popular anymore is because of problems related to scalability. If you rent a conventional office in India, you will not be able to increase or downsize your team as per your will. On the other hand, co-working space in India delivers the perfect solution to this problem. 

You can easily increase or downsize your team based on your requirements. All you have to do is rent out a couple more seats to accommodate your expanding team or let go of some seats to downsize. 

CRE Matrix is India’s most preferred authentic data analytics platform that offers accurate and authentic data of co-working spaces that can help in competitive analysis.

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Rise and Shine of Commercial Office Spaces in India

There is no denying that the Indian commercial real estate market is enormous and is witnessing a healthy rise in demand in 2022 and this momentum is projected to continue for the rest of the year. 

Although the pandemic had a significant impact on the country’s increasing office segment with occupiers cutting back on spaces, surprisingly, the market has bounced back in 2021, with essential occupiers returning to the office. There is an immense belief that a strongly recovering economy and powerful progress in India’s startup ecosystem are going to help advance the growth trajectory upwards.

According to a joint report released by CRE Matrix and Colliers ‘Startups Scale Up’, startups are estimated to lease approximately 29 million sq. feet between 2022 to 2024, a 1.3 times surge from the 2019-2021 duration. The rise in entrepreneurship and the fast development of startups has been one of the most fascinating trends in the office space market in India. 

Startups are believed to be the fastest developing occupier growth among other occupier groups, and presently take up 10% of commercial office spaces. This has led to many openings for office space providers to reconsider and reposition their workplace offerings to draw a variety of occupiers. 

According to the India Office Report Q4 CY’21 by CRE Matrix, the past year has witnessed a rising demand for office leasing, an increase in office stock, stabilization of office vacancy, a rise in rentals, and sustained job growth in the startup space. Thanks to increased digital adoption across all businesses and the rise in vaccination numbers, there is hope that office demand in 2022 may return to pre-Covid levels. 

Increase in demand from Various Sectors 

More than 8,100 digital companies have been set up across the metro cities in recent times. These companies have generated around 6 lakh jobs in India. Increased availability of office space in India has propelled demand from banking, financial services, insurance (BFSI), manufacturing, and consulting sectors. 

For instance, Noida and Gurgaon alone have almost 8.5 million sq. ft. of commercial space in the pipeline. According to the India Office Report Q4 CY’21 by CRE Matrix, the majority of the demand for office leasing continued to be Tech (startups and IT/ITeS majors), BFSI, and Co-working segments. They added almost 58% to office demand in 2021 and 63% in the last quarter.

Factors Propelling Growth in Commercial Office Space Post Pandemic 

  • Co-working spaces are increasing rapidly in the top urban cities of India
  • The economy recovered fairly quickly and numerous companies reopened offices
  • Reverse migration to tier-1 and tier-2 cities and the requirement for office infrastructure in developing locations thereby drove commercial realty development in these cities. 
  • Companies are now providing improved facilities, digital integration, health, and safety features.
  • Infrastructure has improved a lot in smaller cities with numerous initiatives by the Government.
  • There has been a rise in the flexible office space in India. The businesses are planning to continue with alternative work models to maintain flexibility at workstations and enhance business profitability. 

According to the India Office report by CRE Matrix, there has never been a more significant period for the increase in demand for commercial office space in India, particularly after the damage inflicted in the economy thanks to the pandemic. Thanks to digitization across all industries, there will most likely be huge chunks of development in commercial office demand this year. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Real Estate vs. Other Investments

When you think of investing, you can do it in a variety of ways including real estate, bonds, stocks, CDs, or even gold. Thanks to the array of options, it often happens that one investment choice is more lucrative than the other. Based on current market conditions, it is also important to be aware of the type of investment to avoid and when? 

Let’s take a look at real estate investment vs. other investments to help you narrow down the options that are suitable for you.

Real Estate vs. Stocks 

Stock prices are deemed to be more unpredictable as compared to real estate. The rates of stocks can fluctuate quicker than real estate prices. The instability can make you apprehensive unless you plan to purchase and hold stocks, despite the unpredictability. 

Investing in real estateissimpler and better to understand than stocks. The housing sector in India is enormous which makes the home-buying journey multifaceted. But despite the complexity, the basics are quite simple. Moreover, owning a tangible asset can make you more in control of your investment when compared to purchasing slivers of ownership in firms via shares of stocks. 

Real Estate vs. Bonds

Despite their low-risk nature, investors may realize that bonds do not deliver the same profitability when pitted against other investments, particularly real estate in India. In numerous cases, the returns could be considerably affected by the rate of inflation. On the other hand, you will observe significant real estate growth and development during inflation. 

As material and labor expenses rise, rent typically follows, resulting in real estate investors achieving greater profits during this period. Bonds are not known to deliver the best returns as real estate. Across the board, rental properties generally outperform bonds thanks to their capability to produce cash flow, even during inflation or low-interest rates. 

Real Estate vs. CDs

Despite the low-risk investment opportunity, Certificates of Deposits (CDs) typically have lower profit margins when pitted against real estate. The potential for profits in CDs is directly affected by interest rates. When they are low, investors will not be able to get a high return on investment. 

It could take approximately 5-10 years for CDs to mature. Investors will not be able to use their funds during that period. But real estate showcases more liquidity. Even if investors are not able to sell a property, you can still tap into the current equity in many ways. 

Real Estate vs. Gold

Investing in gold may be a simple process but it is a long waiting game as compared to real estate investing. Thanks to the concept of price appreciation in real estate market, you can earn revenue as you wait for an asset to escalate in value, thereby leading to a higher overall cash flow. 

In a nutshell, while stocks, bonds, CDs, or gold are solid forms of investment and each of them has its own pros and cons, real estate delivers cash flow that is directly connected to the decisions you have made. Overall, investors may observe that real estate signifies the likelihood to produce yearly cash flow and profit from appreciation over time. 

At CRE Matrix, we have assessed vital real estate data comprising residential, commercial, retail, and warehousing, across different industries in India. CRE Matrix’s product IndexTap helps in making real estate investments with its extensive catalog of residential properties in MMR. 

For more such exciting analysis and details on real estate, visit CRE Matrix.