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Investors buy key commercial spaces to rent them out

Wealthy investors are buying key commercial lands and renting it out to earn a fixed rate of interest. There is constant demand for such prime business spaces and builders get high income by renting them out.

Wealth managers are of the opinion that rich investors are booking important business spaces or buying out pre-leased commercial property to have a play on rental yields.

Several deals of this sort, valued between 3 crore and 10 crore, are being consummated across important business points in major cities of India. The investors hope to generate 8-15% annualised returns from their rental yields portfolios. Investors are also considering real estate in sectors like high-end retail spaces and IT SEZ.

According to real estate managers, investors are buying leased out property or newly-constructed space directly, only to let them out at current rates.

The advantage of buying leased property is that the quality of tenant will have a bearing on rental yields and asset value. Property leased out to quality tenants also commands higher market value.

To read more real estate news:

Rental cost of commercial property in India is increasing

How to buy or sell a house on loan

Source: The Economic Times

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