With the commercial sector witnessing a huge spike in the last few years, today, more and more investors are looking forward to investing in this real estate sector. Increasing demands have given realty developers a way to come out with some innovative ideas in the development of the commercial real estate investment segment. One such idea which is gaining popularity among investors is commercial real estate investing under residential projects.

commercial real estate investing

Such projects refer to the development of outlets/shops below a housing project that directly helps both residents and commercial property owners. For instance, a commercial shop just below the residential property makes residents’ lives easier; at the same time, investing in such shops can be a big business investment for the future.

Also read: Planning to Invest in Commercial Real Estate? Avoid these Mistakes

With this blog, let’s understand the benefits of commercial real estate investing under residential projects:

Commercial Real Estate Investing Under Residential Projects

commercial real estate investing
source: fortunebuilders

1. Promised Footfall

Commercial real estate properties developed under housing societies ensure regular footfall from the residents and the neighborhood. Shops like grocery stores, salons, medical stores, clothing and accessories outlets make residents’ lives easier because of the proximity. Also, owning a shop or any commercial real estate like this promises a great business and at the same time profits as it is the only choice available for the residents. And if there are no such properties available in the nearby areas, then it’s another boon for your business.

2. Easy And Quick Renting Out

If you are an investor or plan to buy commercial property to rent, you can easily do that with commercial real estate investing under residential space. Reason-such properties offer good profits to the commercial tenant, so the rent can easily be paid off. Moreover, a commercial property can be rented out for a minimum period of 5 years. Once done with rent, an owner can also sell the property and earn a good investment return on commercial real estate in India.

3. Lower Risk

Commercial real estate investing comes with the lowest possible risk. Whether you rent it or plan business from the property, you can earn profit and better investment returns in both cases. Your business will grow with great potential with a regular and promising footfall from the residents and nearby areas.

4. Family and Business Together

In case you are already a business owner and looking for a place where your home and shop are just a few minutes away from each other, then such commercial real estate investing is the best option. In a way, your home is just a few steps away, and you can spend quality time with the family too. At the same time, your family members can also contribute to handling your business if you’re busy with some other work. Such commercial property investment offers the flexibility of work and saves the precious time that mostly gets wasted due to commutation.

5. Low-Risk Factor

The risk factor involved in commercial real estate investing is comparatively low, like planning or renting out a commercial real estate is a great profit-making business; however, a little risk and business goes hand-in-hand.  Commercial property investment under residential projects is a great way to plan your long-term profits. Investing in commercial real estate in India under a commercial project, such as investing in a mall, may initially bring you great profits. Still, as soon as people get a new and better option, it won’t take much time to switch. And a switch in their taste may bring down your profits and turn them into losses. Going for commercial real estate investing under a residential project is a safer bet and a long-term profit deal. 

So, just in case if you were slightly unsure about taking the final call of whether to invest or not to invest in commercial space under the residential project, then with this blog, we hope you’d be able to make a better decision considering all the benefits of commercial property investment.

Also Read: NRI Investment In Commercial Real Estate India