4 Tips For NRIs Investing In Commercial Property In Mumbai

2:01 AM
For those of you looking to invest in office space in India, Mumbai happens to be one of the hottest cities to do so. Mumbai, also referred to as the city of dreams, is home to companies from all over the world and attracts multiple investors are by displaying long-term stability and sustained growth potential.
Mumbai offers a plethora of options when it comes to commercial properties, which makes your choice all the more difficult. Here is some advice on how to go about your search for commercial spaces in the city of Mumbai.

1)   Check The Mumbai Classifieds
It’s always a good idea to skim through the pages of the Mumbai classifieds to look for properties for sale. There are several opportunities for investment in the business districts that have maintained stability over the years. The Central Business District (CBD) is a prime location to invest, however, recently there has been shift from CBD to secondary and peripheral business districts like Lower Parel and Andheri.
Another location where you can invest in commercial property is the employee catchment zones of Malad and Jogeshwari. Thane and Navi Mumbai also offer a stable choice for investment. Whichever location you choose to invest in, ensure that it has good demand and supply dynamics. NRI’s should look at the economy, population growth, and job market of the area before making their decision.
2)   Know The Types Of Property
There are two main types of commercial property namely retail and office spaces. Office spaces are generally larger units, while retail spaces are more modest spaces. If you’re looking to invest in retail spaces, you can find offices that range from 500 to 1,500 sq. ft  and are situated in top quality buildings.
3)   Have A Gameplan
Formulate a budget and stick to it. The minimum amount you should be willing to invest is around 3 to 4 crore according to experts. Figure out the annual rent your property will yield and divide it by the property’s value to determine how much you’ll be getting. Make sure the rental yield is around 12%. Property rates in Mumbai are soaring, so you can expect around 11% return of investment at the right places.
4)   Do Your Research
Conduct your own research and look into the developer’s background to see if they check out. Find out if there is potential for infrastructure development in the area as well as the current state of affairs. Ask questions like, is there good connectivity to different parts of the city?
Furthermore, invest according to your need. If you’re an NRI’s looking for property to start your own business, you should make sure the space will match your company’s requirements. If you’re looking for asset generating property, before making an investment in commercial spaces, calculate expenses such as maintenance, property tax, insurance plus the long term appreciation of capital.
So, there you have it! 4 tips that will help you make a better investment in commercial properties. Keep in mind that location makes a difference and India, especially in a city like Mumbai with a growing market. Looking for more investment advice? Check out commonfloor.com, an online portal for all things real estate.

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