Buying a new commercial property in Ahmedabad? Here are things you should know.

Gujarat as a state and Ahmedabad as a city have shown astounding growth in the last few years. Hence, there is no surprise in the fact that several investors are considering investing in a Commercial Property in Ahmedabad.

If you have visited a top wealth manager or real estate broker, you might have received a similar advice. But, before you make your investment in a Commercial Property in Ahmedabad, you should be aware of certain concepts, regulations and market dynamics.

Most investors who don’t focus on these key things, end up either paying a lot or buying the wrong type of property. So, read along and make the right choice:

1. Understand the difference between a commercial property and a residential property.

Many investors believe that since the tax treatment for a Commercial property and a residential property are the same, they don’t have to worry a lot about the actual differences between them. If you are planning to invest in a Commercial Property in Ahmedabad, you will have to know the key differences.

First and foremost – you will have to focus on the type of property and the extra capital you might have to invest in it, in order to make it a cash-flow generating asset. For instance – if it a residential property, you might not have to incur any major costs in maintaining or making it market ready.

Tenants can come with their own furniture. But when it comes to a Commercial property in Ahmedabad, you might have to work on a few thigs.

If it is a shop, you might have to provide extra room for storage. If it is an office, there would be a whole lot of renovations to be made. Hence, be very clear from the outset – what type of property are you actually investing in.

2. The location is as important as the quality of the property itself.

Buying a Commercial Property in Ahmedabad is a great idea in itself. But once you have decided that, you will have to ensure what area are you investing in?

For this, if you know the end use-case of the property, you will have a better understanding of the right location. For instance – if you are investing in a property that will be used as a shop, you can consider areas like Satellite, Shyamal or Bopal. But if your property will be used only for industrial production, there is no need to pay the premium for these areas. You might as well buy something on the outskirts.