Commercial property by and large promises a relatively high income yield throughout the rental period. Alongside, commercial property investments have also performed well in terms of reliability, growth and stability as compared to stocks and shares in the recent years. In comparison residential property investors rely on the capital value of the house increasing to generate a good return. This suits well during phases heralding rising property prices, but a damp squib during property slumps.
If you are considering investing in Cochin property from commercial viability then let us see what areas can be thought out before taking the final leap. Any commercial property investment comes with its own risks. As compared to shares and bonds, commercial property has poor liquidity, both in the time spent on seeking a buyer and finalizing the transaction. Moreover, in poor real estate market conditions, the ability to find a buyer quoting a desirable price is more difficult. The location of the commercial property is especially crucial in determining the commercial value of the property and the subsequent rental income. Easy access to transport networks is a big factor but consideration must also be given to future developmental scope in the area. For instance if a shopping arcade is coming up in an area, then there will be a depreciation in the value of small shops around. It will do good to identify which sectors and sub-sectors of the market will perform well in the future. The same is true of the geographic regions. A study with regards to the areas which are likely to receive government or multi-national investment in the near future will impact the commercial value of the property in that area. A property which is in the hub of commercial area will benefit financially as compared to the risk taken when it is in an area that is anticipated to grow commercially!