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Why you should be investing in commercial real estate in Thane Mumbai.

November 30, 2017

Why you should be investing in commercial real estate in Thane Mumbai

Why you should be investing in commercial real estate in Thane Mumbai,  Commercial properties In Thane are still quoting below rates than 2008 high.

The positive monthly returns by commercial properties promise a regular cash flow, so the investor is not dependent solely on appreciation to generate a profit, Residential properties in thane some pockets are over-valued.

Thane-Mumbai real estate has always been considered a favorable investment option. However, over the last few years, the real estate market’s momentum has weakened significantly – and in fact, even reversed in some parts of Mumbai City.Why you should be investing in commercial real estate in Thane Mumbai

Poor economic growth coupled with high property prices have made people more skeptical about investing in real estate. Does this mean that real estate is no longer a lucrative investment option?

Weakening Residential Rationale

It is true that real estate was one of the industries which were rather severely hit by the poor economic growth of the country.Why you should be investing in commercial real estate in Thane Mumbai

Piling inventory and escalating prices led to decrease in demand across all Mumbai real estate asset classes. However, with a stable government at the Centre and the renewed sense of confidence, this has infused in the industry, the outlook for the sector once again looks positive.Why you should be investing in commercial real estate in Thane Mumbai

Generally, most people invest in Thane-Mumbai real estate by buying their own homes. Residential has always been the most preferred asset class for real estate investment.Why you should be investing in commercial real estate in Thane Mumbai

The reason is that as the end user investors move up in life, they can rent out their first homes, secure decent monthly rental income and acquire a larger and/or better-located home for their own use.

The negative cash flow is an accepted fact, given the appreciating value of the property.

This is the typical story of most Mumbai-Thane real estate investors who prefer investing via the residential route.

So far, they have been successful at it.Why you should be investing in commercial real estate in Thane Mumbai

 

However, the old formula of investing may not work anymore.

The escalating prices of residential properties and low appreciation levels have changed the market scenario.

The risk attached to investing in Thane-Mumbai residential properties is increasing.

In the best of the cases, investors may still make money, but not as much in terms of percentage as the values of residential properties are already at their peak. In the worst-case scenario, investors may even lose money, as the residential property market in many parts of the country is seeing stagnation and declining capital values.

• Commercial Firms Up

For those looking to invest in Thane-Mumbai real estate today, investing in a Thane commercial property rather than residential can be a better option.

Given the oversupply in the Thane commercial real estate space, prices are currently relatively low as compared to residential property.

Also, this segment holds scope for both capital appreciation and regular income through monthly rentals.

Investing in commercial space requires much larger investments than residential, and this is why Thane commercial real estate has been traditionally been perceived as an asset class where the only heavyweight.

Today, those looking at Thane commercial property investment can look at different ways to do so. One obvious option is to buy a commercial property in Thane; however, one can also buy shares of a Thane commercial developer, or invest in a fund which focuses on commercial property.

 

So, what makes investing in a Thane commercial real estate a safer bet at this point in time?

 

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