Any kind of investment requires that you do proper research. Likewise, when investing in real estate in Mumbai you need to be thorough with your research. Especially when it comes to looking out for commercial properties, there are some common mistakes that you can make while deciding which property to buy. More often than not, the reason for such mistakes is the lack of research and due diligence.
Here are some common mistakes, which you need to avoid while investing in commercial real estate in Mumbai.
1. Not Knowing the Right Property Value
Whether it is residential or commercial, know the current value of the property is of utmost importance before you go ahead with the purchase. One way to assess the value of commercial property in Mumbai is to compare the property you want to invest in with other properties. You can contact real estate brokers and ask them for details regarding the value of the property.
2. Not Selecting the Right Location for Your Commercial Space
The location of a commercial property is what drives the demand for it. This, in turn, helps the value and the rate of return for that property. Hence, as an investor avoid falling for flashy properties at substandard locations. This leads to poor capital growth of your property which means you have to incur losses.
3. Not Making Use of an Investment Strategy While Buying the Commercial Plot
When you are thinking of investing in Mumbai’s commercial real estate, you need to have a proper investment strategy. This strategy needs to have investment boundaries, which you can only set if you know what exactly your needs are. If there is no set boundary, then there might be a chance of overspending.
4. Not Opting for A Reputed Real Estate Developer
Commercial office spaces or workspaces need to be up-to-date with all the amenities and also need to be on good locations with state of the art architecture. As today’s workspaces are becoming more creative, you need to find real estate developers in India who are renowned for making such commercial office spaces. A reputed real estate developer is a safe choice when you want to invest in commercial real estate given that you do a proper background check.
5. Not Doing the Necessary Checks
As mentioned above, thorough research is the first thing you need to do before buying any property. Look for proper credentials, all the documents, delivery of projects, zoning, permits, resale value etc. These are a few parameters that you can look at.
Many new real estate projects in Mumbai are now coming with swanky commercial properties. If you are planning to invest, then basic research and proper due diligence can help you choose a good commercial property.