Amidst Slowdown Why CRE investment is Safe
<em><strong>Kunal Moktan, CEO and Co-Founder, PropShare Capital (propertyshare.in) </strong>shares points that can help make best use of corpus savings for better returns now.</em> <strong>Why Commercial Real Estate is a good investment option today?</strong> The spread of Covid-19 w
Published -
May 15, 2020 5:41 AM
Kunal Moktan, CEO and Co-Founder, PropShare Capital (propertyshare.in) shares points that can help make best use of corpus savings for better returns now.
Why Commercial Real Estate is a good investment option today?
The spread of Covid-19 worldwide has raised ambiguity about investment sentiments across segments. Stock market is in a turmoil with Sensex and NIFTY dropping to record low impacting investment of ordinary investors. One may look at this situation like an opportunity or a loss, exactly like the story of a glass half filled with water. While common investment vehicles might take a hit in returns right now, choosing to invest in real estate especially commercial real estate (CRE) directly or through shared approach can turn out to be a wiser choice. One must consider that historically commercial properties have always been a preferred investment option for long-term investors as it provides higher incentives, greater security and better capital appreciation.
Brief on the critical aspects of Commercial real estate investments
One of the most crucial element of CRE investment is Cap rate, which in India is currently between 7-9%. They are directly correlated to the interest rates in the market and are vital to return benefits. One should remember that profit in real estate is made at the time of investment and traditionally returns have been higher when purchases are made cautiously during distress. Furthermore, the greatest benefit of investing in commercial real estate during these times, perhaps, is that Grade A commercial properties are home to global MNCs with good financial discipline, ensuring constant and assured returns on investment. I am also noticing an increased preference for CRE investment through shared approach just like owning stocks. It has unlocked new opportunities for Indian investors and NRIs to get risk adjusted returns. It can be said, with great factual precision, that ‘these investments are as safe as houses’ for investors.
What are the key points to consider while making an investment in commercial property?
Tags : Interviews Real Estate construction commercial real estate COVID-19 Why CRE investment is Safe Kunal Moktan PropShare Capital (propertyshare.in)