krishnapropinfo.com

Commercial real estate market which had seen a slump for most of last year because of  economic slowdown, is showing signs of a revival, although growth is nowhere near as  compare to 2007 yet. Some big corporates have entered lease deals for top-level office space of late, but at lower rates. Last month, one big Mnc took 1.7 lakh square feet (sq ft) on lease at Gurgaon and Noida. Many other international firms are in talks for similar deals. DLF, the largest developer according to market capitalisation, leased 2.1 lakh sq ft last month across the country. Industry experts says Leases are happening but the market has not fully recovered but they expects demand to pick up from the third quarter of the fiscal. At present, there is a lot more supply than demand and thus pressure on value remains. But if there is a pick-up in demand owing to lower rentals, there could be a shortage of top-grade commercial space as most of the developers have altered their commercial development plans into residential in slowdown time.

Unless you were hiding inside caves or living in the so-called dream-world, you must have heard about the slowdown in real estate markets worldwide but  buying real estate is an investment and buying during the dips - while prices are falling - can lead to gains over time. The buying decision is not fully dependent on whether the real estate market is up or down , investing in real estate is quite unlike buying stocks. The racks at book shops, TV Shows, Corporate Handouts, and Internet Web Portals or Blogs may be overflowing with books and ideas insisting that many are making their fortunes in real estate, but the truth is, compared with stocks, real estate is a complex, multi-dimensional investment. So, if you have to buy a new home to live-in and can afford it, just buy - whether the market is up or down. Property ownership is the best overall investment, and when you look at the complete picture, it is true - there are many tax and financial advantages to owning a home, and most properties do tend to appreciate over the longer term.

But the idea of real estate investment returns should consider major property buying drivers like cost, location, condition, rental value and choice. The bottom-line is, investment property is a piece of real estate that generates income - more income than it costs to own and maintain. Whether it is a IT Park , Mall  or office space, the biggest consideration is income from it must exceed the cost. The cost includes everything: loan payments, taxes, upkeep, utilities, etc.