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Is it a good time to invest in commercial property in Ahmedabad

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Is it a good time to invest in commercial property in Ahmedabad

Last updated: October 10 2020
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  • Is it a good time to invest in commercial property in Ahmedabad

    Given that recession might hit US in next 12-18 months which in-turn would affect Indian economy too. If this happens, will the real state prices in Ahmedabad go down especially for the commercial projects?

    Are real estate prices in Ahmedabad highly inflated and this bubble would definitely loose some air during recession?

    Given that now every upcoming residential project has commercial shops planned in it, is commercial investment a good idea at all?

    I'm looking to buy a commercial property for investment. Would appreciate your expert opinion.



    Thanks in advance.



    Last edited April 23 2019, 02:14 PM.
  • #2

    #2

    Re : Is it a good time to invest in commercial property in Ahmedabad

    If you want to buy commercial property , then buy from second owner. I advice you to dont buy commercial properties from new devlopers.Because of there is reason , many peoples lost his money because of fraud devlopers in past from 2012 and there is no solution even if case goes into the court. Nowdays Even if RERA is formed , cases are continously coming in courts. I saw many cases comes with leased lands , means that devlopers bought property on leased lands about for 10years from land owner and then after construction was done. And after 5 years , real land owner file case against devloper and peoples who bought houses will lose his money.
    But i found that in recently in 2020 , goverment offices are mistaking in registering names , survey area and survey numbers and see many farmers goes into the court regarding this issue. See there is one rule , when you registered property in goverment office , its your responsibility that survey numbers and names are correct as per your ID proofs. But in recently mistake was done through office and farmers wrote ,letter to the collector about this issue. So even if you blindly trust on your broker , please check name in your title and survey numbers and area of that property.If you have little mistakes in name , then you cannot resale property after that.
    Third is commercial properties are not even in use in nowdays.Here i will tell you real story of the retailers , kirana store owners are losing his revenue because of online businesses like amazon and groffers (vegetable & fruits ) online markets are booming in india. And customers are getting it in lower prices.So i will suggest you buy warehouse instead of commercial properties. You can see nowdays many commerical properties are on sale and no one wants to purchase it. I can tell you , if you even wait more 10 years , your commercial property gain only 1% return or even less.And you can get hassel while selling commercial property , because of its hard to find nowdays customers for buying shops. I saw near my house almost 70% shops are vacant or for sell from last 5 years and still they are waiting for sell and move to the canada / USA etc in Ahmedabad.
    So its better to invest those large chunks in fixed deposits or corporate fixed deposits. Because of real estate is always depreciating sector for investment. If you open any investment books , those billionair peoples will say that insurance and real estate are not investments . Because of no social security ,like any one can trespass into your property or commercial property and claiming that this is my property. And case goes into the court , if you are living outside of the india as a NRI. So better to handover keys to the good known agents and pay them good , so they will care your property.IF you really want to invest in real estate market , then buy second owner house. Because of publics are lost faith in new devlopers because of frauds , and losing those large chunks of money is not worthy. Here nowdays many peoples are facing possesion issues , property registration issues and many more fraud dealing are going on in market. So i saw 90% deals done in past with second owner houses , because of 95% second owners of houses are ready with papers and clear in title search of their properties. And ready to move , no hasselements of getting possesion letters , no tension of getting getting new connections of the electricity , PNG gas connection. Everything is ready to move. I saw deals , when one party bought 60lakhs house in naroda , however he didn't know howmuch pollution is there , water issues are going on and then he is difficulties in getting possesion letter from company. And still he is in wait of getting possesion letter. The same type of property bought from second owner , 3 BHK and solded in 90lakhs with furniture and interior.However both are same types of house , but there is no hasselement of water and water is coming pure there , parking slot is available , fun park and tennis court and gym court is available in that house flat and double security was there . So this is the difference between 60lakhs house and 90lakhs house. However , that guy who bought 90lakhs house , received free car from owner and property papers are upto date with right owner title. And they sold house in within 5 days with cheque. So there is no hasselements and within the 1 hour , they done property registration in the goverment office.While in the new projects there is fear of fraud is always , you can get hasselements if possesion letters or property letters are not received after paying them cheque. The worst nightmare is when , devloper give that house in rent and you bought house there and tenant is not vacating house , even time period is over.I saw 3 or 4 cases in new projects.
    Here is my advice from 8 years of dealing with real estate market.
    Last edited October 10 2020, 02:14 AM.

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