The idea of moving your business into a new commercial space is an exciting one. However, it’s only half the battle. Jayesh Dave, MD of Jayraj builders Vadodara, lists a few important factors that must be considered before making a commercial real estate purchase:
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1. Location:
In real estate sector, premium location means higher price. For instance, cities like Mumbai, Delhi, which are well-connected with all modes of transportation and have world-class amenities, have properties valued higher than that of tier-2 cities like Jammu, Dehradun, etc
2. Budget:
According to Jayraj Builders MD Jayesh Dave, it is critical for the investor to lay down the budget allocation towards the property cost amongst all other business related transactions. “This also helps in easy selection of the commercial property amongst the available options,” says Jayesh Dave
3. Physical condition of the property:
A newly constructed property fetches more value than the old ones. Whenever a user purchases a new property, he/she always keep all the repairing costs in mid, thus how the place was used before your purchase is an important thing to know about.
4. Property and its allowable purposes:
Every kind of business would put the property to a different purpose. For example, a CA firm would need an office space whereas a factory owner or a manufacturer would put property to industrial uses. Thus, it becomes critical to know the lawful use that the property can be put to before finalizing.
5. Limitations to modify:
Based upon the applicable laws properties have, there are restrictions on modifying the exteriors of interiors of the property. Jayesh Dave suggests studying the laws in detail and being clear of your requirements.
6. Availability of support services:
Services like parking, lift, security, etc. must also be paid heed to while finalizing the commercial real estate. If available, these services not only help in running the business successfully but also contributes to the resale value or determine a better rental in the future.
7. Infrastructure and neighbourhood:
Infrastructure development in the area affects the property value to a great extent - both positively and negatively. Developments like railway line construction might affect the value of your property value, suggests Jayraj Builders Vadodara MD Jayesh Dave.
8. Take into account your deposit:
Several businesses find it easy to ignore that they might need to place down a large deposit amount. It is important to think about how much money you have available, and whether or not you would be able to put down a substantial deposit.
9. Think with your head, not your heart:
As per Jayesh Dave, Managing Director of Jayraj Group, research constitutes the most important part of a property purchase. To begin with, a buyer should look for amenities like hospitals, markets, schools as well. The absence of any of these facilities can lead to a reduction in the overall price and value of the house. Thus, think well before investing your hard earned money on a property.
10. Hidden Costs:
Several properties have certain hidden costs associated with running and maintenance of the property. These potential costs must be estimated in advance and discussed in the contract itself before sealing the deal, suggests Jayesh Dave.
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