Pre-leased commercial assets top investor’s radar

Pre-leased commercial assets top investor’s radar

As per current trends, investment in pre-leased commercial properties has gained great momentum in the country. Real-time investors are experiencing a dip in fixed income products like Term Deposits, Bonds and others. In the present times, investors both from abroad and in the country are investing in this kind of property. Investing in such property helps earn better equity value along with capital appreciation earned on the increased rent. In short, investors can achieve better returns.

An overview of a pre-lease property

A pre-leased property is the one that is given to an institution and is later sold to a buyer along with the lease. The buyer of the property is promised a settled ROI (Returns on Investments) from day one of the purchase, which is drafted as a rental income as the rent deed is composed in their name.

Advantages on in pre-leased property

Rental yield is the foremost advantage that the buyer gets by investing in a pre-leased asset. The yield is greater than that which is available through conventional investment. The profit for commercial assets that are located in central areas is around 7% while for the residential section it comes to around only 2.5%.

Yet another benefit is that investors get immediate returns on the investments and do not need to look out for tenants. These characteristics contribute in making these assets a practicable and attractive choice for investors.

Seeing the market trends, it is quite obvious that the demand for commercial property is going to increase quickly thus giving a stable standard return and capital appreciation in days to come. Investment in pre-leased commercial assets has become the best option for property investors, entrepreneurs, and corporate houses. 

Vinay KV
Vinay KV
Director

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