Real estate continues to be one of the most reliable and highly understood investment vehicles. It seems that the scheme looks quite simple from the outside: you bought an apartment, and after some time you start renting out the property or resell it after putting the house into operation.
But here we are talking about investments in residential real estate. Things are a little different with commercial real estate. Before you start investing in commercial real estate, it is important to understand a few distinguishing features:
- On the purchase of commercial premises more money is needed than for the purchase of residential real estate.
- The profitability of commercial real estate depends on the segment, as well as on the object itself.
Should you invest in commercial real estate, or is it better to take the safe route and buy an apartment? Here it is worth mentioning that commercial real estate pays off two to three times faster than residential real estate. profitability reaches up to 20% and above.
It is clearly worth making a choice in favor of commercial real estate, but any investment requires preliminary preparation and study of market features. Only a responsible approach to investing can 100% guarantee you success and profit. By the way, if you have decided to buy real estate, we recommend contacting the best luxury real estate agency. Capital.
How to invest in commercial real estate?
Investing in commercial real estate is a very profitable investment right now. Especially if you plan to rent the object in the future. Renting commercial real estate in Ukraine is traditionally a dynamic market. But, despite the attractiveness, the purchase of commercial real estate is associated with large amounts of investment, additional costs for repair and maintenance of the object, as well as with great risks. Therefore, it is necessary to approach this issue very thoughtfully.
See also:How to rent a non-residential premises?
To start investing in commercial real estate, first of all, you need to decide on a goal and develop an investment plan. To do this, you must first decide on the following questions:
- Will it be investing in your own business or receiving rental income?
- For which target market segment is the commercial object suitable?
Before investing in commercial real estate, you need to analyze the market situation so that your premises do not sit idle for many months. 2020 was a turning point for the commercial real estate sector and began its transformation.
- The once popular segments of office and retail real estate have declined significantly.
- Hotels in the last two years are generally considered to be the most affected industry.
- With the onset of the coronavirus, the demand for warehouses, production premises and logistics real estate increased.
As you can see, commercial properties, which tend to be more profitable, are more prone to sudden changes in market supply or demand. Not to mention that the profitability of commercial real estate depends on the individual characteristics of the object and other factors.
See also:Renting an apartment: how to write an ad correctly?
When you plan to invest in commercial real estate, it is better to enlist the support of experienced specialists of THE Capital company. We have unique information on the real estate market, and are ready to share our accumulated knowledge, experience and skills with you. Subscribe to our real estate blog updates. and receive the latest publications from the real estate agency THE Capital.
