Buying Commercial Property in Ahmedabad
Buying Commercial Property in Ahmedabad: Should you wait or buy now?
If you have been following the Ahmedabad real estate market, you must be aware of the so-called million-dollar question – is this the right time to buy a commercial property in Ahmedabad?
There are several ways to answer this one question. The more people you talk to, the different angles you will get to see on the same question. Yet, we all are talking about the same real estate market.
Then, the question arises – whom do you trust? The brokers will have a biased opinion because they are already in the market. The builders will have a biased opinion, because they have to sell their products. Other investment advisors will have their own agendas.
Here is a simple way for you to decide:
1. First of all – stop timing the market.
Some of the most prolific investors in the public equity markets have stated that they don’t have the ability to time the market. Timing means – entering and exiting the market at the right moment.
The market of commercial property in Ahmedabad is so big, that you will end up missing some variable, no matter how thoroughly you analyse it. So, how do you evaluate an investment opportunity?
You should evaluate each commercial property in Ahmedabad as a standalone investment opportunity. What is the replacement cost of the property? What is the expected yield? Is the area growing fast enough? What is the safety rating of the building? What is the builder’s reputation?
If you conduct a thorough analysis of a commercial property in Ahmedabad, you will know for a fact whether it would suit your portfolio or not.
2. Define your needs.
It is very easy to say – I am looking for maximum profit on this property. As a matter of fact, anyone can say it. It means nothing.
What you really have to define, is the exact nature of your investment. If you are making only an investment, you will have to consider the yield you want, the tenure you have in mind and the cost of capital you will have to bear. If you plan to use the commercial property in Ahmedabad, you might have to consider the list of features you seek from the property.
3. Focus on buying quality properties at the right prices.
The best solution to avoid timing the market is by focusing on buying quality properties. There are several opportunities in the space of commercial property inAhmedabad. Keep your mind and your eyes open, hire the right professionals and soon – you will have your desired property.