Investment in Real Estate in Goa is mainly dominated by two crucial derivatives ;
- RESIDENTIAL PROPERTIES
- COMMERCIAL PROPERTIES.
Since the investment in the Commercial Real Estate has the different parameters for evaluating and other considerations than Residential Real Estate , understanding the following points related to Investment in the commercial Properties in Goa will generate more clarity
and ideology for the planning and strategy to invest in Commercial Real Estate.
LOCATION
In Commercial Properties , there are two main resources for Return on Investment (R.O.I)
- FIXED RENTAL INCOME .
- CAPITAL APPRICIATION.
Both of the avenues are largely dependent on the Location of the property .The Selection of the Location is playing vital role for the Returns and each of the points related to location as mentioned below should be surveyed and analyzed properly in order to get the best of the returns.
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- AREA : While making a plan to have commercial properties ,it is recommended to have survey whether the area is popular for specific TRADE ZONE for the specific PRODUCTS as it is usually observed in lots of town and METROPOLIS . Certain areas in the city dominates certain Trade Activities like Pharma Market , Automobile Hub, Clothes- Textile Bazaar , Tyre zone etc. to name a few. This particular business practice help the investors promote their properties to the relevant resources of the particular Trade.
- FLOOR SITUATION : In commercial Properties ,FLOOR situation is very crucial as it monitors elevation of the enterprises , status of the SHOPS or OFFICES as well as other establishments. Particularly for any retail Outlet or Chain of Shops ,or even
M.B.Os – ( Multi Brand Outlets) , Ground floor , Mezzanine floor and at the most first floor are the ideal. For a business of Retail and also related to SERVICES Consultancy ,SPA ,clinics, selection of ideal floor situation will help the property to fetch both rental as well as capital gain in a better ways. - FRONTAGE : In any of the area , front portion of the premises plays very vital role as the same is giving sight and size of the business establishment, it is even more significant whether the frontage is MAIN ROAD FACING or SIDE ROAD / STREET FACING. Further ,it also matters how wide is the Front Opening Of the premises as the more visibility of the products display , the more chances of FOOT FALLS.
- BUILDING’S REPUTATION AND INFRA : Identification for Commercial Properties should be in accordance with the Infrastructure as well as Architectures of the Building complex ,which will earn premises reputation in the time to come .An ideal complex with all the required infra structure like Parking , Visitors longue , Small patch of Garden , waiting longue, lift , power back up ,small cafeteria etc. will give a proper image to get good clients as well as get good appreciation.
- VACANCY : The appreciation and development of a commercial property is backed by occupancy .The more the occupancy in the Building ,the less is the Vacancy.
If there are more vacant premises in the building ,the same is not a good indication of the building’s progress as well as investors would be non responsive to such properties , which will be a hindrance to fetch a good returns on Investment.
WE will discuss further for the another issues related to the appreciation and Healthy returns on investment in commercial properties in upcoming articles.
One Comment
Rachel Frampton
My husband and I are planning to invest in a commercial building that will be rented out to start-up businesses. Well, I agree with you that the prospective property’s location must be surveyed and analyzed. You’re also right about the importance of checking whether the building is equipped with a visitor’s lounge, lift, and great parking.