Why Renting a Commercial Space in Hyderabad is a Good Choice of Investment?

Investing in a commercial property is a highly stable choice in the real estate industry. The real estate industry has witnessed unprecedented growth over the years. We all know that Hyderabad is the ideal destination for commercial offices. There are uncountable multinational software companies, global educational institutions and global pharmaceutical majors with R&D centres. This is why the demand for commercial space for rent in Hyderabad is high.

Investing in a commercial space for rent in Hyderabad is the best option for an attractive return. This is the safest option for all real estate investors. The presence of a thriving IT sector office adds value to your commercial space in Hyderabad. Renting a commercial property is the best choice over buying one. Across the globe, multiple companies invest in rented commercial properties. In this context, we are going to share why it is good to invest in commercial properties in Hyderabad rather than residential properties.

Renting residential vs commercial properties in Hyderabad

The rental profits arising from commercial real estate are much higher than residential properties. The residential property rent is measured based on per square foot. But when it comes to the rental amount, it comes in a significant amount. The higher rental property returns ultimately improve the monthly income. Commercial real estate rental properties offer multiple benefits, which are listed below:

The benefits of choosing commercial space for rent in Hyderabad

• Good Earning Potential

When you rent commercial property or co-living spaces in Hyderabad’s main location, you can improve your chances of receiving an enhanced annual return. It gives you a good earning potential without putting much effort.

• Cash flow stability

Commercial real estate rent mostly runs for longer periods. This is dissimilar to residential leases and enables steady cash flows to investors for long periods.

• Improved tenant properties

Are you a landlord of commercial properties? When you give commercial properties for rent, it improves the tenant properties. When the commercial property is leased to various tenants, the chances of risk decrease.

• Turn the commercial property into a professional

You can turn the commercial property into a professional with the mutual fund. The REIT offers in-depth value, liquidity and transparency in the market. There are lots of REIT’s guiding principles that give the necessary impetus to commercial space. 

• Reduced maintenance expenditure

In residential properties, the expenditure on the maintenance premises would require a high shell out to the owner. The commercial space the tenants would take up on their own benefits the location. The Retail spaces require enhanced maintenance.

• Advantages of Depreciation

Income from commercial property is generally more consistent than income from residential property. In terms of the lease or rental duration, residential properties are full of uncertainty. In the case of commercial property, the rental is somewhat guaranteed due to the longer lease duration. Investing in commercial real estate property always offers higher tax shelter with the depreciation of the property.  

• An inflation hedge

Compared to residential property, commercial property provides a superior inflation hedge. This could result from rent escalations that occur when leases are signed. After a tenant leaves the space, there is a chance that the rent will rise for an extended period.

• Increased earning potential

Commercial properties have much higher annual returns when compared to other alternative investments. In Hyderabad, the returns on suburban office spaces are typically higher than those on commercial housing properties.

• Increases the property’s value

When your property is leased with good returns, it adds to your property’s value. When a buyer leases a commercial property, some major factors include location, available space, and property amenities. If your property meets with the person who wants to buy it, it will impact the value of your property.

• Take Advantage of Tax Breaks

Rent from a residential or commercial property is not considered business income. When filing your income tax return, you can include ‘Income from house property.’ Property owners can take advantage of tax breaks such as depreciation and the investment tax credit.

If you’re a new business, the last thing you should be concerned about is the amount of money required to keep up with your space. Renting commercial space allows you to focus on what matters most, like the ambience, business park, locality and all. You can plan specific upgrades within your budget. So you don’t have to pay large sums to make your space suitable for your business.

Conclusion

Are you looking for the right place for commercial rent? If you are, you should be specific about a few things. Nothing is worse than making an impulsive decision and selecting the wrong commercial space for your company because you are in a hurry. Make sure you allow enough time for a smooth search for an ideal commercial rental space.