Guidelines for Investing in Retail Shops and Retail Spaces

The retail realty sector in India is almost tied with the retail industry. India, being the fifth largest address in terms of retail markets in the world, typically has a strong realty market for retail as well. With consecutive growth registered by the e-commerce market and robust investments in the retail sector, the Indian retail realty market is expected to grow widely in the coming years too. In addition to the covid 19, Indian real estate is all set for a contactless, tech-driven shopping to drive India’s retail segment post-covid 19.

Why is investing in commercial shops a good option?
In the real estate market, buying a residential property that is to be self-occupied is not as much of an investment. However, investing in a second property (to earn from it), commercial spaces or retail realty spaces can fetch you high returns on your investment.

Now, while individuals with high net-worth may be able to invest in more than one commercial/retail property and consider their capital gains, other investors might find property investments that yield a steady income to be more profitable. Recently, with increasing demands for commercial spaces across big cities like Noida, funding in commercial spaces has become a favoured option. However, not all investments in commercial spaces have to be luxurious. For people who find big commercial projects a little too expensive, the retail shops and retail spaces make for an appropriate investment option.

Given the economic and demographic strengths, the retail market presents a better picture in big cities than it does in the smaller ones. That being said, for someone wanting to earn some good money, by investing in retail shops in Noida or any other metropolitan, makes complete sense. Spectrum Metro is one such option positioned in the heart of the city of Noida, sec 75 which gives a perfect mix for all your investment needs- retail shops, stores, food court, multiplex, serviced apartments, etc.

Things to consider when investing in retail shops or retail spaces/ Innovative spaces – Innovative spaces are quite the trend at present in the real estate market in India. Mixed-use projects are also among such developments that are the outcome of innovation. These projects offer a mixture of residential, commercial, and retail spaces all at one place. Mixed-use projects have earned the right name in rapidly developing cities, so if you are curious about investing in the retail space in Noida, Spectrum Metro would be an excellent place to start.

Ownership model -Generally, for investors who do not want to lose all their money into one single project, or those who don’t have adequate capital for a big-sized project, a strata-sale model works out well. Here, developers sell out unit shops individually to buyers and investors. Investors will be free to find tenants without any obligation of the developer.

Leasing Model-A commercial lease is a document that sets out the powers and obligations of the owner of a commercial property (known as the landlord or owner) and a third party that has consented to occupy the property (known as the tenant or lessee). There are several kinds of commercial leases that apply to other circumstances, although they are all kinds of commercial leases, they are not commonly referred to as commercial leases.

Owning commercial property is a choice for leasing it. If a business has the money for a down payment on the property and can expect to make a real return on investment (ROI), then buying rather than leasing commercial space may be an excellent thought.

The future new normal– Contactless shopping is expected to be the latest trend with Indian consumers bypassing crowded stores and preferring low exposure. It is also likely that the hygiene level of stores will be the fundamental differentiator for customers. Indian consumers are also required to spend less money, but more than usual on primary products. Indian retail may have to strengthen itself for less shopping trips by Indian consumers post the lockdown, but these trips will have more planned purchases instead of spontaneous buying. Under these circumstances, stocking of products may become a new practice.

Other than the above, if you choose to buy a retail shop in Noida with a purpose to set up business there, don’t forget to do your market research, as this will give you an idea about the type of retail that will fetch you good returns. The project is soon nearing its possession and also encourages assured lease guarantee, which will add significance to the investors who are investing with the project. This will serve the investors with the best as Spectrum Metro has a bandwidth of big brands which states that the investment you have made will start receiving returns from the very next moment. This would turn out to be a win-win situation for the investors as the return on investment is immediate. Hurry up to avail this opportunity with Spectrum Metro!