Wednesday 25 January 2017

Industrial Properties: A Rising Investment Opportunity

Residential? Commercial?
If you are limiting your choices to these two options, you will be amazed at the high investment yield that the industrial properties offer. The residential properties give a high return on investment but one needs to wait for a considerable period of time. If it is given on rent, the maintenance of the property is a big concern. The commercial properties have many advantages but for a few years, they have not reflected any major growth. Investment in industrial properties is not quite common but the last years have shown promising returns and a great opportunity. The industrial units include warehouses, industrial lands, factories, cold storages etc.

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The demand for the industrial units is increasing. Industrial units are generally on the outskirts of the city where buying a land is already cheaper and convenient. Moreover, the return is more than the residential properties. The yield of residential properties is at the max 3% to 4% round the year while for the industrial properties, it is easily 7% to 10%. Let us see the advantages of investing in the industrial properties.


1. High ROI
No doubt, the investment in industrial properties is beneficial. You can get your investment back in the few years and reap the profit for the rest of the leasing period. If you buy an industrial property today, your next generation would be getting the benefits; more than the residential and commercial properties.

2. Long term commitment
When we are talking about the longer lease period it is generally 99 years of leasehold. The least time to lease an industrial property is three years. Once your property finds a tenant, you can sit back and relax, the money comes flowing.

3. No taxes to be paid
All the taxes like the land tax, maintenance charges, water rate, council rate, management fee are to be borne by the tenant himself and not the owner. So there is no liability for investing in industrial properties for the owner.


4. Investment options
Warehouses and industrial sheds are the best options. Sheds are the places where manufacturing units are set up and the warehouses are the places where the finished objects are stored. The online shopping portals also need the warehouses to store and we all know how successful are these portals.Your warehouse would never go vacant if you invest in the right tenant.


Like the commercial properties, if the industrial units get vacant after the lease period, it is tough to find another tenant. The lease is for a long term and needs a huge upfront money, so one might find it difficult to get a new tenant as compared to for the residential properties.

The legal formalities related to the industrial properties also make it tough to invest in them. Make sure it is the right choice for you before investing. Not many people are investing in them because they do not know the implications, not because they do not think it’s a good idea. For any 3 BHK Flats in Jaipur related queries, you can contact us. Our team would provide you with the best assistance.

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