thementorgroup, Author at The Mentor Group
New Innovation in Real Estate

Co-working Ecosystem – A New Innovation in Real Estate

The adaptation of co-working real estate in India began in 2013 and is growing at a much faster rate as compared to global trends. The development and growth in global co-working operators have led to the expansion of this segment in India. The co-working spaces have gathered significant momentum and this has increased the demand of start-ups and SME’s. This fast growth has attracted many big players to considered managed workplaces as the investment option. The benefits of such commercial hubs can only be enjoyed with the strong support of economic fundamentals and positive interest in funding the start-ups. India is the second-largest co-working in the APAC region with a market size of 16 million as of 2019. With more than 400 shared workspaces including start-ups, freelancers, SME’s and enterprise customers, the penetration of this innovation is increasing day by day.

New Innovation in Real Estate

As the co-working presence increases, the real estate developers and stakeholders are exploring different models of this segment. Typically, there are three operating models in the co-working ecosystem namely sub-leasing, revenue sharing and own & operate models. Each of the model, promises to deliver its unique advantages.

Sub-Lease Model – This is the most commonly adopted model in India. In this, the managed space provider signs a long-term lease with the owner of the property. The provider then further sub-leases the co-working space to the end-users. In this kind of agreement, the property owners are at a low risk as the direct rental incomes continue to be received by the operator.

Revenue Sharing Model – In this type, the property owner and the third-party operator collaborate and agree to develop a managed workspace. The initial investments are provided by the property owner while the operator manages the spaces leased to the end-users. The revenue generated is divided by the owner and the operator as per the signed revenue-sharing agreement.

Own & Operate Model – The property owner creates and operates this type of co-working space. While this model burdens the owner and is not a preferable model. Typically, the owner lacks the management expertise and without the help of the operator could incur losses.

Apart from these, the co-working segment is moving towards more innovative business models. Major companies are scaling up to use and created sub-segments of managed workspaces. The new opportunities are witnessed in the Indian co-working ecosystem like

  • Local real estate developers are collaborating with the international co-working operators
  • Few big players of Indian real estate are setting up their co-working, commercial hubs and SEZs. The Mentor Group is one such leader in North India.
  • The co-working operators are further collaborating and acquiring other co-working start-ups
  • Even the retail developers are establishing co-working spaces to expand their business
  • Other industries like hospitality are identifying new solution to enter into co-working spaces.

The co-working spaces are deriving the corporate sector by offering cost savings, scalability and flexibility. The ease of transaction and business is another factor that is attracting the real estate developers and investors for funding these models.

Real Estate Innovation in Construction Technologies

ConTech – Real Estate Innovation in Construction Technologies

The Indian real estate industry is rapidly adapting to global technology transformations. This has increased the demand for more efficient construction techniques. The proven construction technologies are cost-effective, more efficient, reliable and faster as compared to traditional techniques. Globally, the cost of property construction is increasing at an alarming rate. More than 30% hike has been witnessed in the wages of the labor both in construction and services (plumbing, electricity and etc). This has created an emergence in the real estate models to opt for shared workplaces, commercial hubs, and new asset classes. The commercial space management has brought a higher focus on convenience, cost-saving,  and time savings. Along with this, the increasing penetration of the internet and smart digital platforms have enabled technology-based online transactions.

The Indian real estate industry is rapidly adapting to global technology transformations. This has increased the demand for more efficient construction techniques. The proven construction technologies are cost-effective, more efficient, reliable and faster as compared to traditional techniques. Globally, the cost of property construction is increasing at an alarming rate. More than 30% hike has been witnessed in the wages of the labor both in construction and services (plumbing, electricity and etc). This has created an emergence in the real estate models to opt for shared workplaces, commercial hubs, and new asset classes. The commercial space management has brought a higher focus on convenience, cost-saving,  and time savings. Along with this, the increasing penetration of the internet and smart digital platforms have enabled technology-based online transactions.

The players of the real estate industry are making use of technology and bringing a disruptive shift in building business models. Following are a few factors driving this investment in technologies:

Real Estate Innovation in Construction Technologies

Internet of Things (IoT) – The developers are focused on creating smart building solutions. With the use of IoT connected devices and the real-time interface has enabled them to bring personalized user experiences. The sensor-based lighting, temperature control, and tracking sensors help to reduce real-time energy consumption and save money.

Building Information Modelling (BIM) – This technique helps increase productivity by 20-30% by improved building and construction management. The model helps to create quick design cycles, more control of the construction process and efficient transfer of data. This helps to reduce wastage and labor costs.

Smart Sustainable Systems – The integration of green building concepts has resulted in lower consumption of natural resources. Also, techniques like heat insulators, sensors, rainwater harvesting, solar panels, and other efficient fixtures have helped to reduce the operation cost as compared to traditional buildings.

Construction and Project management technologies – The construction management software are helping the developers in real-time processing and tracking on the projects. This reduces time delays and ensures budget control across all stages of the project. The commercial projects are adapting to the use of offsite construction and precast technologies. The delivery times are reduced by a considerable margin when centralized production and faster assembly lines are used.

India is emerging as the leading market for ConTech integration, especially in the industrial and commercial market segments. The increasing urbanization and smart infrastructures, the demand for commercial hubs, and co-working spaces is increasing with each passing year. Prestige real estate builders like The Mentor Group are making the best use of construction technology to deliver best-in-class industrial and commercial spaces in time and at affordable costs.

Commercial Real Estate Technology Transformations

New-Age Commercial Real Estate Technology Transformations

The Indian real estate has witnessed transformational advancement in modern amenities, architecture, designs and comfort. Alongside the property buying experience has also adapted to the modern need. The overall process of purchasing a commercial property\land has also gone through a fundamental shift. The ease of business and support by the national government has transitioned the real estate market from time-consuming, exhaustive to hassle-free, and smooth process. Traditionally, the property sale and purchase along with its transaction details were solely taken care of by the brokers, agents or by a chain of middle-men. With the digitization of the real estate market, the builders have started to integrate the modern techniques in their respective business websites. Since the business-owners are more intelligent and do a research-based choice, the real estate developers have become more transparent.

Commercial Real Estate Technology Transformations

The nation-wide movement of adopting technology interventions and the need for promoting digitization has enabled the real estate construction efficiencies. The initiatives like Commercial Hubs, Digital India, and Easy Finance options have helped to reach the real estate to all segments of the consumers. The technology is redefining each stage of the real estate business life cycle from construction, operation, and management, finance, transaction, and marketing strategies.

The online and mobile-based real estate business platforms have transformed the property buying experience of the consumers and have shaped the industry into real estate as a service. The new-age technologies like Artificial Intelligence, Virtual and Augmented Reality have disrupted the real estate and significantly comforted the property purchasing experience. The builders have promoted their marketing strategies by using drones and 3D printing models. This gives business-owners a visual interface of the surroundings and ever corner of the interiors of the property. This has helped entrepreneurs to equip themselves with basic knowledge which further helps them to make better choices.

Today, the clients can compare the property sites, their features, amenities, budget, and location. Along with this, customer feedback is readily available online due to which the builders have adopted the transparent route. The online also offers national announcements about various schemes, benefits, and exemptions related to the real estate market. The RERA registered projects have every detail updated on the official website which is mandatory for the builders to submit it on a quarterly basis. The builder’s reputation, project reviews, and previous project completion details can be validated by the property-buyers.

The innovation in the digital and technology has improved the speed of completing transactions and reinforced customer engagement. Another biggest factor that has been impacted the customer journey is automation in the finance and related key processes. This has helped to maximize the customer ease of access making them an efficient and effective expansion of the real estate sector.

The technology is helping the construction (ConTech) and the property (PropTech) aspects of the property industry. The builders are utilizing modern techniques like Building Information Modeling (BIM) and using innovative building materials and interiors. Commercial hubs like Central Street which are more environment-friendly are leading the real estate market. As a business-owners, there are umpteen options to choose from.

Improved Home-Buying Experience

Improved Home-Buying Experience

The Indian real estate has witnessed transformational advancement in modern amenities, architecture, designs and comfort. Alongside the home-buying experience has also adapted to the modern need. The overall process of purchasing a residential or a commercial property\land has also gone through a fundamental shift. The ease of business and support by the national government has transitioned the real estate market from time-consuming, exhaustive to hassle-free, and smooth process. Traditionally, the property sale and purchase along with its transaction details were solely taken care of by the brokers, agents or by a chain of middle-men. With the digitization of the real estate market, the builders have started to integrate the modern techniques in their respective business websites. Since the home-buyer is more intelligent and makes a research-based choice, the real estate developers have become more transparent.

Improved Home-Buying Experience

The nation-wide movement of adopting technology interventions and the need for promoting digitization has enabled the real estate construction efficiencies. The initiatives like Smart City Mission, Digital India, and Affordable Housing has helped to reach the real estate to all segments of the consumers. The technology is redefining each stage of the real estate business life cycle from construction, operation, and management, finance, transaction, and marketing strategies.

The online and mobile-based real estate business platforms have transformed the property buying experience of the consumers and have shaped the industry into real estate as a service. The new-age technologies like Artificial Intelligence, Virtual and Augmented Reality have disrupted the real estate and significantly comforted the property purchasing experience. The builders have promoted their marketing strategies by using drones and 3D printing models. This gives home-buyers a visual interface of the surroundings and ever corner of the interiors of the property. This has helped first-time buyers to equip themselves with basic knowledge which further helps them to make better choices.

Today, the end-users can compare the property sites, their features, amenities, budget, and location. Along with this, customer feedback is readily available online due to which the builders have adopted the transparent route. The online also offers national announcements about various schemes, benefits, and exemptions related to the real estate market. The RERA registered projects have every detail updated on the official website which is mandatory for the builders to submit it on a quarterly basis. The builder’s reputation, project reviews, and previous project completion details can be validated by the home-buyers.

The innovation in the digital and technology has improved the speed of completing transactions and reinforced customer engagement. Another biggest factor that has been impacted the customer journey is automation in the finance and related key processes. This has helped to maximize the customer ease of access making them the efficient and effective expansion of the real estate sector.

The technology is helping the construction (ConTech) and the property (PropTech) aspects of the property industry. The builders are utilizing modern techniques like Building Information Modeling (BIM) and using innovative building materials and interiors. The smart buildings which are more environment-friendly are leading the real estate market. As a home-buyer, there are umpteen options to choose from. The first-time home buying checklist further helps to narrow down the search thus, making the home purchasing journey a comfortable decision.

The Future of Workplaces

The Future of Workplaces

It all started in 1999, when “flexible desking” was introduced by a US-based software company. Gradually, the US and Europe markets started to attract several start-ups. A decade before, the shared spaces doubled its count and investment. The large corporate’s began to explore similar models and improve the working lifestyle. The evolution of co-working spaces reached more than 16 thousand with new businesses accounting for approx 65% of new shared-working setups. Co-working real estate models are witnessing major demand and gaining popularity due to an increase in start-ups and Small to Medium Enterprises (SME). Currently, more than 4 million people are utilizing the shared ecosystem and helping each other grow.

This radical transformation is due to the flexibility in terms of cost, infrastructure, services, and support. Parallel to these creative designs, fresh and joyful environment and ply and play features are attracting even the established entrepreneurs. Especially, the real estate market has seen a recent shift in the investment in managed workspaces. Builders are adapting to the need of the end-user and developing projects like Special Economic Zones (SEZs), Industrial Parks, Commercial Hubs, Theme Parks and exclusive co-working spaces. A new segment is added into the real estate market which is “workspace as a service”.

The shared workspaces in the real estate are used by corporate end-users, individuals and start-ups. These spaces demand shared ownership, ideas, resources and knowledge among the fellow neighbors. Such a space provides an individual with fully-functional and furnished infrastructure with advantages like flexibility, convenience, and the option to smoothly scale up or down in a cost-effective way. The best part of the shared workspace is that it brings together communities, departments, domains, skill sets and to collaborate and design solutions that could benefit all. This, in turn, reshapes the corporate work culture into an inclusive landscape – an environment that promotes social engagement, which is flexible, and activity-based culture.

The self-owned offices or conventional real estate business models involved large investment commitments for every modern feature they wished for. Today, due to shared economy the co-working spaces offer shared amenities as well. Common food courts, gaming zones, lobbies, reception, security, day-care facilities and etc are changing the working lifestyle of office spaces. Co-workspaces are inclusive of all modern technology, space allocation, and the feasibility of availing and relocating the space at short notice. Most of the start-ups fall apart due to the initial fear of investing in the infrastructure, documentation, technology and other services required to start a business. A shared workspace provides the ability to plug and play which means to give convenience to the organizations to scale up or down their business.

The co-working real estate business models are the future of the workplace. The demand is growing exponentially across all levels of companies include large and medium companies. It is not limited to any industry and is being explored innovatively by modern architects and organizations. The collaborative workspaces are building significant momentum in the Indian real estate industry with the fastest growth rate. This has also shown a positive impact on an investor’s interest in funding start-ups.

RERA Registered Projects in Mohali

RERA Approved Projects in Mohali

Always go for RERA approved projects in Mohali for secured, hassle-free, timely and guaranteed commitment. Mohali has been effectively placing itself towards one of the organized urban areas in India with its structural occurrence. It has a decent choice of properties from office space to 2/3/4 BHKs to villas for the buyers to choose from these properties. Modern technology combined with incredible structural infrastructure has been contributing fundamentally to it. The city is in close proximity to Chandigarh has been driving the development in the capital of Punjab and Haryana. The city has been continuously developing in real estate with builders moving to RERA registered projects in Mohali and timely completion. Mohali has the highest number of real estate transactions and is emerging as the prime destination for investment in the real estate market. Along with this, the state government has been committed to establish and promote the real estate market in Mohali. GMADA has been offering various plans, schemes, policies to meet the innovative and trending demands of the city.

Demand for RERA approved Projects in Mohali

RERA approved projects in Mohali are the first choice of the home-buyers. The benefits of approved projects are huge and are imaginably secure and documented. The projects reveal all details to the legal authorities with continuous development, support, and guaranteed commitment. The registered projects offer transparency with the submission of project updates to the authorities every quarter. The guidelines have helped to prevent fraud and defaulter cases. The accountability of the timely project completion with all promises validated to the allottees. The demand for RERA registered projects in Mohali has increased after the launch of this act.

This is due to the assurance of imposing penalties on the defaulters. Any disputes or compromise in the quality of the project will be penalized and liable to legal actions. The act brings financial discipline by introducing the escrow account. The builder needs to transfer 70 percent of the money received from the buyer to this account. Along with this, without any written sales agreement the advance payment cannot be more than 10 percent of the cost of the project.

Who are the Best Builders for RERA Registered Projects in Mohali?

The Mentor Group is one of the major leaders in the RERA approved projects in Mohali. With more than 50 years of certified experience in real estate development. The builders have maintained a portfolio of delivering superior construction standards. The team is known for on-time delivery and competitive pricing to benefit the investors. With tag line of move forward – together, the projects like Central Street, Prime Square, and etc are one of its kind crafted and spacious commercial properties.

Especially, Central Street which is situated along the National Highway 5 in Sector 67 gives exceptional benefit to the business owners to invest in this land. The location advantage includes proximity to Fortis Hospital, Puda Bhawan, Cricket Stadium and transport stations (road and railway). The Mentor Group is a team of certified and experienced experts who have decades of successful experience in industrial plot development, residential projects and commercial infrastructure.

Central Street: A Great RERA Registered Project in Mohali

Central Street in Mohali has gained the top position among all the RERA approved projects in Mohali. This commercial hub encourages community vibrancy. This project promotes the art of bringing communities together in a prosperous corporate environment. This inspires the employees and ensures a sense of belonging within all. As per the experts, diversification in real estate reduces investment risks. The risk (not limited to) of maintenance of payments, property taxes and etc. Investing in commercial projects gives a decent capital appreciation along with return on investment as minimum as 2-5% even under unstable market dynamics. The Central Street office space shows an immense income potential.

The property is situated at the prime location where the vacancy is less than 5%. This upcoming RERA registered projects in Mohali by the Mentor Group are approved by GMADA and will be equipped with superior connectivity,  better livability, and top-notch infrastructure. The location enjoys its proximity to the international airport, railway stations, and other transport stations. The builders are known for delivering premium quality industrial parks and residential spaces.

RERA Registered Projects in Mohali

Initially, an area that was a cluster of some villages has today become a busy commercial place due to the RERA approved projects in Mohali. Mohali holds many opportunities for real estate along with the other facilities and amenities. The city is set at a valuable position connecting with key areas, it has easy access to Chandigarh and closes by cities like Ambala and Delhi. It is near to the international airplane terminal making it a feasible destination for investment. The city enjoys several reputable institutes for education which provides a great quality of education to the youth. Some of them being Indian Institute of Science Education and Research (IISER),

Chandigarh School of Business, Indian School of Business (ISB), and etc. The rise in demand for RERA registered projects in Mohali is due to its affordable prices and a variety of home-buying choices. The projects like Central Street, Prime Square and others by reputed real estate builders have made the city as the next investment destination.

What does RERA approval mean?

RERA approval brings uniformity and transparency among home-buyers, builders, brokers and other stakeholders of the real estate industry. It ensures timely completion, identifying risks and protects the interest of all parties for registered residential and commercial projects. The act also defines the penalties for any violation like delay in completion, or defect in the building and covers disputes with the buyers.

What is The Benefit of RERA?

  • RERA act ensures that the accountability of the projects lies to the allottees.
  • The registered project’s builders need to reveal every detail related to the project to the legal authorities and update them on a regular basis.
  • The payments should be made by the buyer on the basis carpet area (within walls) and ensure that the builder does not charge for the super built-up area like lift, lobby, stairs, and etc)
  • The act guarantees to impose penalties to builders for not meeting the time deadlines of the projects.
  • Any defects in the building or related disputes procedure are defined in the act.

What are the RERA guidelines?

The guidelines of the act enrich the Indian real estate sector with financial discipline, transparency, risk management, efficiency, and accountability.

  • For land (residential or commercial) over 500 sq meters, it is mandatory for it to be registered under the act.
  • Quarterly updates on the project details including approvals, documentation, disputes, and etc should be submitted to the authorities.
  • 70 percent of the money received from the buyer should be transferred to the escrow account to ensure financial discipline.
  • A standard sales agreement has to be maintained between developers and home-buyers in order to protect respective sides from charges and penalties.
  • The advance payment cannot be more than 10 percent of the cost of projects without any written sales agreement.
  • The developer will be responsible for any defect or structural poor quality in the projects and would have to compensate or fix it within a desired period of time.

Is Central street, a RERA Verified Project?

Yes, the upcoming commercial hub of Mohali – Central Street is one of the RERA registered projects in Mohali. With a total area of around 8100 sq meters, it offers 23 plots for showroom and 9 plots for double story shops (DSS). Situated at the prime location in Mohali, this project is becoming the first choice for commercial real estate investors.

What is the strategic location of Central Street?

This upcoming commercial hub is situated along the stretch of National Highway 5 in Sector 67 in Mohali. The location is a fast-growing locality with well developed social infrastructures. Central Street brings the opportunity to promote the ease of business in the region. The location is near to the railway station and international airport. There are several schools, colleges, parks, markets, hospitals in close proximity.

What sizes are available in Central street?

Showrooms and DSS (double story shops) are the two categories of properties available in this project.  The double story shop’s size range between 535 to 590 sq ft. and the showroom size for the basement and ground floor is around 1494 sq ft. and other floors range between 996 to 1122 sq ft.

Who is the Builder / Developer of the central street?

The Mentor Group is a team of certified and experienced experts who have decades of successful experience in industrial plot development and commercial infrastructure. The Central Street project is one of the best in the class designed, planned and modern architecture constructed with the latest technology by the Mentor Group.

How do I know if RERA approved projects?

Home-buyers can easily verify whether a real estate project is RERA approved or not. The government initiative to bring transparency for the consumers is achieved by using the rera.punjab.gov.in website. The projects can be searched using the name of the district, promoter name, registration number and project name.  I always prefer to go for RERA registered projects in Mohali for a secure and transparent deal.

What if the project is not registered in RERA?

As per RERA guidelines, every residential and commercial real estate project must be registered and approved by the authority. The non-registered projects are at high-risk with the possibility of fraud and duped cases. The project details are kept hidden, there is no one authority to handle the grievances. There is no guarantee of the completion and quality of such non-approved projects.

Infrastructure Investment Trusts (InvITs)

Infrastructure Investment Trusts (InvITs)

Real estate investments and Mutual funds have dominated the market since the beginning. Recent reforms have made Trusts as one of the alternative investing options. In the ever-changing real estate and construction sector, investing in infrastructure trusts is emerging as the new trend. The government is making all possible efforts to bring in advancements and improvements in the economy of the country. Infrastructure projects are one such focus area of the government for which it has collaborated with the private sector as well. There are various reasons for which an infrastructure project gets delayed. The major factors include alarming increase of debt finance costs, global economic slowdown, and cost overruns. Along with this, lack of both equities of private investors and international finance flows add further delays and stress to the market. This prevents the builders, service providers and investors from undertaking any new infrastructure projects. Infrastructure Investment Trusts (InvITs) have been introduced to produce enough security, trust and able businesses to meet the funding requirements.

Infrastructure Investment Trusts (InvITs)

What is Infrastructure Investment Trusts?

These trusts are similar to mutual funds, which helps to collect funds from investors and invest them into infrastructure assets for revenue generation. In simple words, InvITs enable direct investment of small amounts from possible individuals/investors in the infrastructure sector of the country to earn a return on investments. Real estate investment trusts (REITs) have similar features to InvITs. However, InvITs are specific to the infrastructure sector.

What is the structure of InvITs?

These trusts come under the SEBIs registration and regulations policies. An InvIT consists of 4 elements namely Trustee, Sponsor(s), Investment Manager and the Project Manager. The parties involved in this must adhere to the statutory code of conduct which requires them to refrain from conflicts of interest. This helps to maintain high standards of integrity and certainty in these trusts.

Trustee: is a SEBI (Security and Exchange Board of India) registered certified trustee who administers the InvITs. A trustee cannot be an associate of the Sponsor or the Manager.

Sponsor(s): are the companies or corporate bodies or Limited Liability Partnership (LLP )which sets up these trusts. These promoters should have net-worth of Rs. 100 crore and have to hold at least 25% in the InvIT collectively for at least 3 years. The sponsors and promoters also include infrastructure developers or special purpose vehicles (SPVs).

Investment Manager: is a company or LLP or corporate bodies that manage the assets and investments of the InvITs. The manager owns the responsibility to undertake the activities of an InvIT.

Project Manager: is the person or the entity responsible for achieving the execution of the projects. They responsible for the project milestones in accordance with the agreement (concession) or any other project-related document.

REITs and InvITs are the innovative vehicles that allow developers to legitimize the revenue-generating real estate and infrastructure assets. They enable investors or unitholders to invest in these assets without actually owning them. These benefits the developers by providing funding for the new infrastructure/real estate projects and liquidity to investors or unitholders as the units of the trust are listed on exchanges. Apart from these, REITs and InvITs enjoy favorable tax treatment, including exemption from dividend distribution tax and relaxation of capital gains tax.

 

Real Estate Opportunities in Educational Sector

Real Estate Opportunities in Educational Sector

As per the recent surveys, the Indian education sector is estimated to touch the 100 billion US dollar mark. As of 2018, there are around 40 thousand colleges and more than 900 universities in the country. The sustainable development schemes and policies of India give much importance to the educational sector. The Smart City mission is incomplete without the up-gradation of the educational institutes. The real estate developers have started to emphasize on adding this sector into their reality plans. The education business has attracted major investments by the leading players in the realty sector. The opportunities in education offer the unparalleled possibility for investment in regulate and non-regulated market. For the down-sliding real estate market, the educational land and properties are becoming as a savior. With the recent national initiatives for the educational vertical, the country has witnessed a significant increase in the market share of the education industry. There are schemes which have motivated investments from non-resident Indians (NRIs) and also opened doors for foreign educational institutes. Policies like 100% FDI via automatic route is allowed in the education sector. Along with this, the National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill have opened up umpteen growth opportunities for the educational industry and real estate in parallel.

As per the survey by DTZ India, the demand for real estate would rise up to 5500 million square feet to achieve a GER of 30% by 2020 from the higher education sector. The opportunities for the real estate would include the development of educational institutes, hostels, student housing, retail spaces, and etc as the support services. Several developers have started to build amenities like staff-housing, recreational facilities, sports arenas, and etc which add additional revenue options. The construction opportunities are not restricted to the above areas but also to pre-school education services, primary, secondary and high schools. The government introduced exclusive benefits and incentives for the institutions developed for special students. In parallel, investment in vocational education services would increase the capacities of the current schools and give a boost to the employment index of the state and the country. The government promotes investment in educational development by allocating land with a hassle-free process, provide financial support, tax exemption and insurance support.

The recent trend of co-working spaces have brought exponential growth in the real estate market. With infinite benefits in investing in such spaces, the new buzz-word in the market these days is “co-living” spaces. With the advancements in cities like Bangalore, Mumbai, and etc in the educational vertical, the mobility of the students has increased. This floating population of students needs houses to live in keeping budget, hygiene, and security into considerations. The paying guest market today is unorganized and is not well monitored. Hunting for a room in a different city is always the scariest part in a student’s life. The real estate developers have focused this interest to student-housing and co-living spaces to cater to this need.

The future prospects of education and the realty market have great scope, opportunities, and potential. The REITs scheme could also be used for investing in educational centric realty options. The year 2020, could just witness a grand revolutionary change in the real estate market of India.

 

Reasons to Invest in Commercial Property

Reasons to Invest in Commercial Property

What is Commercial Property?

Commercial property is a real estate property that is usually used for business purposes only. A commercial property mostly refers to buildings that provide space to businesses; it may also refer to the land which is intended to generate profit. The commercial property has many implications like financing of the building, the tax treatment and the laws which are implied to it.

Investing in Commercial Property?

The key considerations for investors before investing in the commercial property must be through a rigorous assessment of their investment horizon, risk-taking capacity, the purpose of investment that is in as (diversification, long-term investment, and rental return).

It is important to consider the location of the project, project quality, lease covenants (rent, lock-in period, escalation, etc), micro-market performance and benchmarking before planning to invest in the commercial property. It is important to see whether the micro-market is preferred by a diverse occupier mix or a specific industry, this will be useful if the investment is in the future project of commercial property with no pre-leasing activity. Stable income-generating office assets must be a priority for regular income stream requirements, while few risks can be considered for future commercial projects based on the capacity to risk of the investor.

Reasons to Invest in Commercial Property

Reasons to Invest in Commercial Property:

Income potential – one of the reasons to invest in commercial property is the earning potential over residential rentals. Commercial properties usually have the purchase price between 6% and 12%, as per the area.

Professional engagements – Many Small business owners want to protect their livelihood and take pride in their businesses. For example, the landlord and tenant have a business to business customer relationship, which helps them keep interactions professional.

Operations at limited hours – usually businesses go home at night. In other words, they work when you work. The authorities or the monitoring service are in charge of taking care of any mishaps that take place in the property without disturbing the owner at midnight.

More objective price evaluations – It is usually easier to evaluate the property prices of commercial property as one can request the current owner’s income statement and determine the price based on it accordingly. If the seller is has a knowledgeable broker, the price should be set such where an investor can earn the area’s prevailing cap rate for the commercial property type they must be looking at (retail, office, industrial, etc.).

It has more flexibility in terms of the lease – a few consumer protection laws govern commercial leases, opposite of the dozens of state laws, like the security deposit limits and the termination rules that may cover the residential and commercial real estate.

Triple net leases – There are variations to triple net leases, but the general concept is that one as the property owner does not have to pay any expenses on the property. The lessee handles all direct property expenses, including the real estate tax. The only expense one has to pay is the mortgage. Strip malls have a variety of triple nets and are not usually done with smaller businesses, but these lease types are optimal and one can’t get them with residential properties.

Finding a co working space

Finding a Co-Working Space

Many startups begin their business from home, but the home office may not be a suitable place for work in the long run. Since in the future, the startup will eventually grow and would bring in more new people on board or need space and atmosphere to meet with customers. It may also become difficult to keep home and work life separate which may decrease the productivity of the business.

 What is a co-working space?

It is a place where remote workers can meet; small enterprisers can build a business with their staff and of course a space for freelancers.  There are many large enterprises such as Instagram and Timehop who have once used these spaces to grow their business. The advantage of having a co-working space is flexibility. Each co-working space is different in its own style and layout, like breakout areas, lines of desks, and enclosed setups with private meeting rooms. If you are thinking about owning a co-working space, it is important to pick the right one for your business. Below are quick tips for you to guide and help you out:

  1. Location fit as per your convenience

Ask yourself whether your office should be nearer to your home or your clients? Accordingly, choose the right place considering you are ready to travel to your co-working space. If it is mostly client-based business then it does make sense to go for co-working space where it’s easy for clients to visit the office space.

  1. Support you will receive

Once the spaces selected are shortlisted based on your choice of location, go for what each one offers. Startups should consider two basic options. First, you may choose an incubator that may offer higher levels of support. Secondly, you may choose an autonomous shared space that is open to all.

  1. Identify your space requirements

Are you looking for a dedicated work area, permanent writing space or just a normal desk?  Analyze how much space you would need on a daily basis.

  1. Look for resources and amenities

The need for essential and specific amenities is required for every business. If you have construction work you may need an area with a workshop or to build a model of the building. Get the space as per your requirements.

  1. Positive Aspect

Each co-working space is different in their own way be it is community or atmosphere. It is on you what you want for your business. You may look for a professional atmosphere or maybe a relaxed chilled environment. It is important that you go and visit the space before you get it. Ask questions about your space and what it is like to work there in that environment. Ask about whether the space is well-managed, what happens if you need help and how fast the issues are resolved. Then, accordingly, go for the right space.

In the end, look for space where you can promote your business. Place where the further network can be built which will help your business to grow and where you are able to organize events for your business which are easily reachable to the right target clients.

Let’s Connect!

Corp. Office:

SCO 1, IInd floor,Above SBI in Touch,Near Best Price,Chandigarh Ambala Highway,Zirakpur, Punjab 140603

Phone:
+91 70870 00176

E-mail:

info@thementorgroup.in

Location

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