Commercial Property in Mohali & Chandigarh has a lot of popularity especially amongst the local buyers and NRIs, as it has proven to be highly profitable and rewarding in terms of finances. There are diverse options to generate a good flow of income by investing in commercial properties in Chandigarh or Mohali. Commercial properties like Mohali City Center are relied upon to yield high profits. The period of the breakdown of the market post-pandemic has finally come to an end and Commercial Real Estate has grown with a new infrastructure.

There are many new market trends when it comes to investing in Commercial Real Estate in today’s time. The commercial properties of Mohali are not only restricted to hotels, malls, or corporate offices but there is a high demand for co-working spaces, shopping centers, and many more. Commercial Real Estate is one such investment where there is a high potential for appreciation of the property and attracts a lot of other benefits.

1. Long term investment

Real estate is considered as one of the most trusted investment sources and the demand is growing immensely. With the growing demand, there is a requirement for commercial complexes in Mohali for businesses to work and grow.

The Indian Commercial Real Estate Market size is estimated at USD 33.62 billion in 2023, and is expected to reach USD 87.57 billion by 2028, growing at a CAGR (compound annual growth rate) of 21.10% during the forecast period (2023-2028).

2. High returns on investment

Compared to other forms of investment, Commercial Property in Mohali is considered to be the most safe and secure investment. Based on recent estimates, Commercial properties offer average returns of 8-11% p.a., which is considerably more than the current rental yields of residential properties, and since it is a long-term investment, the returns on the same would be consistent or can increase in the future.

3. Protection against Inflation

Inflation refers to the rise in price levels of goods and services and it directly affects the purchasing power of the economy. Due to inflation, property prices in Mohali will increase simultaneously and will affect the rent prices, as the purchasing power of a currency drops, average property value is forecasted to increase with new and existing commercial rentals as the lease renewal rates increase. This is mostly the case with properties that are already developed and have been around for some time. The interest rates are also likely to increase which will directly affect the market value of commercial buildings in Tricity.

4. Broaden business opportunities

Investing in Commercial Buildings widens the scope for business expansion and adds to a stable income source in the future. There is a high demand for business and office spaces in tier-1, tier-2, and tier-3 cities due to the rising number of startup businesses. Most tenants and buyers are businesses operating in quickly expanding industries like consulting, e-commerce, and information technology. Domestic and international companies are also showing interest in commercial property in Mohali as a means of expanding their operations due to Tricity’s prime locations, top-notch amenities, and affordable purchasing and leasing costs.

5. Tax Benefits

Investing in commercial buildings comes with several tax benefits. If you secure a business loan for purchasing any type of commercial property, you can claim a deduction of 30% of the taxable amount invested in various construction activities, including repairs and building materials. Moreover, the interest paid on your loan is directly deducted from your total taxable amount after the completion of the building. When you earn income from your Commercial Properties, it falls under the ‘Income from House Property’ category and is taxable annually. The rental amount you receive, or expect to receive, is considered the annual value, which is taxable after certain expenses are deducted.

6. Improve Credibility

Investing in Real Estate accounts to build the assets for your company. When you apply for any kind of business loan, with any kind of financial institution, the first thing any lender will calculate is your Credit Score. This score takes into account your outstanding debts and present assets and serves as a representation of your company’s financial health. It can be an important factor in determining your ability to secure loans or other lines of credit. An asset such as owning a Commercial Building that is lucrative improves your credibility in the market and provides better interest rates and loans for future business expansion. This further benefits against any kind of unpredicted losses and increases your risk-taking power for planning business operations.

7. Long Term Investment

Owning a commercial property is not a small amount to be invested, hence the investors strategize a long-term plan to secure better return rates in the long run. Commercial Properties like Mohali City Center are considered to be a stable source of income as compared to other forms of investment. By owning a commercial property over the long term, you can accumulate equity in your investment through mortgage payments and property value appreciation. As you pay off your mortgage, the difference between the current market value of your property and the outstanding mortgage balance will increase, providing you with greater equity. This equity can be utilized to make additional investments or serve as a financial safety net.

Final Words

Commercial property in Mohali is an ideal way to generate capital gains or rental income to create income. With many factors connected to investing in Commercial Real Estate like Mohali City Center is an ideal source to generate stable income even in times of inflation and widens your scope in business expansion not only in real estate but also by providing better credibility for finances and leverage over taxes. It is the best time to start planning your investments in the Commercial Real Estate Sector to secure the future of your business as there is potential growth of the same in the near future.