If you are a new investor in the real estate
market, understanding the various types of real estate investments is crucial
as it would go a long way in helping you to make wise decisions and effectively
maximise your earnings. While making an investment decision, it is important to
consider some of the characteristics of the underlying real estate properties
as the performance of these properties directly impact the performance of your
investment.
One of the most important criteria apart
from the location is the ‘Type of property’. For example, whether the
underlying properties are residential, shopping malls, office complexes,
warehouses, industrial or a combination of all of these, each type of these
properties have their own set of drivers that make them unique in their own
way.
Listed below are
different types of realties for investments:
- Residential property: This type of investment includes vacation houses, apartment buildings, condos, townhouses and other types of houses where the occupants pay to live alone or with families. Residential properties deliver the most stable returns irrespective of anything, as there would always be a demand for a place to live. As a result, investing in residential property is always a better investment option in comparison to other property types.
- Office property: Offices are known to be a flagship investment for many real estate companies in developing cities like Gurgaon and Noida. These type of properties tend to rank highest in the profile of the property type because of their typical central location and sprawling suburban office parks. The fundamental factor for investing in this type of property is the average space required per office worker. More the numbers of white collars, greater is the demand for office spaces. The office properties tend to perform extremely well in terms of prosperity because the demand for spaces lead to increase in the high rental rates.
- Retail property: The retail properties range from large enclosed shopping malls, store fronts to single tenant buildings. In this type of investment, the buildings are built or purchased and rented out for the sole purpose of serving as retail outlets. Many retail properties are known to have ‘anchors’ meaning large scale well-known retailers like Wal-Mart, etc. The anchors enhance the fundamentals of the property and make them more desirable for investment. The location for retail properties depends on several factors such as viability, other brands in the vicinity, population density of the area, and their relative income levels.
- Industrial property: Generally, industrial properties require more investment as such in case of manufacturing units. However, there are a host of industrial properties that can be bought at cheaper rates comparatively and require less management incentives. Such Industrial buildings could be used for various purposes such as storage units, warehouses, etc.
Property, apparently, is one of the highly
rewarding investment option today as there will always be a demand for property
in the market – be it the residential plots or space for setting up office or
opening new branches of your apparel brand. There are a host of real estate companies in Gurgaon that offer exclusive properties for investment and promise
high rate of return. However, it is imperative to weight your options and make
the final decision.
