April 2020 - The Mentor Group
Real Estate Market – Investment Options

Real Estate Market – Investment Options

The real estate market attracts major investment leaders for it is the most lucrative investment option. Several Mid and Large-cap investors choose real estate as their prime investment over other options. Not just national, even the international holders get attracted due to the comparative stability of the market. This has only been possible due to recent reforms in both residential and commercial property procedures. While all projects in Mohali are RERA registered, they offer consistent capital appreciation for the investors.

With the integration of modern technologies in the constructional and otherwise in the real estate have led to sustainable profits. The market might hit it’s low but later it always emerges as the winner and generates exponential benefits for the investors.  The central government is focused on improving the shape of the industry and have introduced several initiatives. On the commercial side, various state-level exemptions are given to every participant. The ease-for-business focus has helped the market to break the records and offer continuous profits. This article would help buyers and investors to check the trending investment options in the industry.

Real Estate Market – Investment Options

Mutual Funds for Real Estate

The market-specific mutual funds is an investment option provides the benefit of sharing profitability in the sector. While these funds exclude property trading and other related practices. While investing in the mutual funds an individual should consider the factors keeping future in mind. As the nature of a mutual fund – no two funds can offer the same growth pattern. The rules apply for the real estate funds as well. It demands extensive research and also provides consistent profits.

Real Estate Investment Trusts (REIT)

These are similar to mutual funds. The key difference between REIT and a mutual fund specific to real estate ion the control given to the investor. In REIT, the investor has more amount of control to his investments. Based on the study of the performance of the shares, a buyer can invest accordingly. At the background, the mutual funds invest further in the REITs to yield more profits. Publicly traded REITs are also available and are low-risk investment option.

Rental property investment

The short-term rentals have always been the most preferred and steady income source. Factors such as the prime location, modern amenities and etc can boost the rentals. The market is getting mature with each passing year and short-term rentals are trending. An investor can invest in the market or on the property of choice for short-term and benefit from the rental income.

Invest in Supporting Companies

With technology taking the front seat, the investors have shifted their investment to the companies which support the industry.  The ConTech companies are helping the market to reach the exponential growth levels. Thus, the inclination of the stakeholders to this company investment is a beneficial trend.

Distressed Properties

The land or property which has existing debt or is lying abandoned due to disputes are also considered as one of the investment options. Pending loans or any property where default payment has been done provides the opportunity to the investor to buy notes for such property at discounted prices.

The market looks promising for the investments in Tricity and North India. Make a choice and invest in the real estate for steady profits and low risks.

Retail Real Estate – Trending Commercial Sector

Retail Real Estate – Trending Commercial Sector

Traditionally, the commercial real estate was meant for business owners and industrialists. With the shift in market dynamics, the real estate for an individual is not limited to buy a house or a residential unit. Today, retail real estate offer higher capital appreciation as compared to residential investments. This category of commercial real estate in the broader terms includes properties,  buildings and land that focus on generating profits specific to the retail industry. Over the past few years, the real estate market has witnessed a great amount of expansion and maturity in the retail sector. This growing inclination of the builders and individuals is due to steady rentals, market prominence, and higher return on investments in retail. Further, the demand is boosted by the smooth transition of services like leasing, renting, buying, selling and managing retail real estate properties.

Retail Real Estate – Trending Commercial Sector

Why invest in Retail Real Estate?

Majorly, the retail sector establishments includes shopping and entertainment properties. This sector includes clothing shops, florists, shopping malls, streets, and etc. Following are the major benefits of investing in this commercial real estate category.

Market Maturity

The significant transformation in the retail real estate market has helped to resolve many historical challenges. Earlier there was a lack of reliable supply and no clear and standard regulatory procedures in place. Today, the market has grown and gained the maturity to streamline the investment process in the market segment. For all three formats namely high street retail, retail malls, and shopping centres are individually growing at a steady pace.

Higher returns

On an average, the retail investment yields range from 6 to 8 % which is higher than that of residential. These numbers are a great parameter to attract the investors. The calculation of the investment yields is based on the annual rental income and the price of the property. The retail industry is open for stream-based investment and promises much higher capital gains.

Lease Time

Typically, the retail leases are signed for at least 5 years. This long lease facility gives sufficient time to the individuals to establish their businesses. In turn, this offer security to the landlords. In a format of turnover-rents, the landlords get the opportunity to get a percentage share of the gross revenue from a business.

Low Maintenance

The costs involved in real estate taxes, utility bills, maintenance, insurance are all taken care of by the tenants and not the landlord. The retail leases offer more benefits for the investors. The investment in shopping malls or commercial hubs provide several advantages to the tenants as compared to isolated shops. The features like office staff, common reception, electricity and security maintenance and many others are handled by the business avenue owners.

High Efficiency

The cost of any real estate asset majorly depends upon its location. There are higher chances of growth and capital gains if a shop is located in a mall or a high street. The location plays an important role in the transportation of the raw materials.

Overall, the retail spaces are transforming from service-based to experience-based avenues. The business owners are shifting to more entertainment-based developments like supermarkets, fitness, recreation centres and etc. The focus is to live, work and play and to provide continued growth opportunities.

Modern Workplaces – Enhance the Business Productivity

Modern Workplaces – Enhance the Business Productivity

The modern workplaces have introduced an immense transition in design and approach in the corporate real estate. Today, the offices are moving away from cubicles and bringing more collaborative and open spaces around. The visual appeal of modern architecture is much more pleasant and aesthetic in its tone. Traditional office spaces are being challenged by the new smart designs. They are re-designing and reshaping to improve productivity. It is noticed that the modern workplaces encourage collaboration and creativity among the peers. This further gives opportunities for innovative ideas to develop and enhance the business productivity. Following are the major benefits of commercial hubs, and modern office spaces for a business.

Open Team Environment

The modern office spaces increase the collaboration and helps to put the right amount of focus to make crucial decisions. The open spaces provide the platform for the ideas to be shared and respected by others. The cubicles, on the other hand, restricts an individual at the physical level which in turn blocks the mental learning curve as well. As per the surveys, it is observed that modern workplaces to enhance productivity by encouraging individuals to share ideas, learn new perspectives. Collaboration in the open spaces helps to brainstorm together and find efficient and bigger picture to solve business problems.

Global Network

2020 is the era of technological advancements and integrated interfaces. These progressions have transformed the working style into one global network. The gap of distances and timezone of clients, vendors and customers have been reduced. The new technologies enable remote working, co-working areas, and teleconferencing advancements which boosts the overall business productivity. Communication is the key to success and with modern working, it has become more convenient and fast. The latest technology is supporting every business to work in a simple, standard and effective manner.

Supportive Interiors

Gone are those days when offices had one table and chairs from the ancient times. Today, the interiors include colour tones to bean bags\couches to innovative light sensors. Good interiors can affect the mood of the employee. If used in an appropriate way, it lifts up the spirit and makes in individual more productive. For every business growth, it is very important to analyze the area of their employee’s work and how they feel working in the workplace. Appropriate lighting, the option of natural light, and green patches around add a therapeutic sense in the environment.

Scalability  –

Every business grows and the demand for expansion increases. The technology is evolving faster than the speed to catch up by the businesses today. The modern workplace, commercial hubs or ready to use office spaces gives the flexibility to extend or reduce based on the requirements. The commercial hubs are fitted well with all necessary amenities which are required for a business to operate. This includes infrastructure changes, architectural designs and meeting\conferencing facilities. The businesses can opt for any custom additional feature they wish to choose for them.

Investment in modern workplaces and commercial hubs have many other benefits which help a business to spend effort and energy on their business and transfer other burdens to the third party. The managed workplaces provide favourable conditions and ecosystem for business growth.

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