Looking for a promising real estate investment opportunity in the neighborhood? Are you someone who wants to diversify his/her investment portfolio? Is residential real estate not earning you the income you desired?
There are many benefits and rewards attached to investing in a shopping mall. It is not only a safe and secure option but it also provides you with a steady source of income. Commercial real estate vs residential real estate debate has always been under the limelight as both have their benefits.
However, investing in retail commercial shops is always a good choice for investors.
Want to know why? Let’s dive right into it.
Easy-to-lease Commercial Areas
Interestingly, it is quite easy to lease out commercial properties such as shopping malls and retail outlets. The government is very flexible in giving lease to the investors. Unlike other real estate investment options, commercial real estate comes with less security deposit limits and termination rules.
Every investment comes with a certain level of risk. Risk cannot be ignored completely. However, with sound strategy and well-informed decision making, we can mitigate the risk associated with investing in real estate. When it comes to a shopping mall, the risk is low because there are many stakeholders involved and is spread across many people. When you buy a house, you are solely responsible for the risks attached to it. This is not the case with shopping malls because it is a shared space making it a safe and secure investment opportunity.
A Simple Form of Investment
Real Estate investment in Pakistan has immense potential, especially in current uncertain times. By simple form what we mean is that you should select options that are secure and offer good returns. Shopping malls yield good returns as long as you are diligent.
Shopping malls as a form of investment are also simple because both new and old investors understand how shopping malls work. Whether you’re investing for rental yield or planning to start your own retail brand, both forms work great wonders.
New Lifestyle Trends
By analyzing the latest lifestyle and shopping trends, it is safe to say that the trend of shopping malls will not be dying any time soon. The economic importance of shopping malls is also improving due to changes in the lifestyle of people.
Now, instead of hovering clueless in the markets, people look for one-stop shops or all-in-one malls where they can get everything at one place. Hence, to cater to the rising demand for shopping malls, developers are building malls to meet this increasing demand.
Diversification of Portfolio
Shopping malls are an excellent option if you want to expand your portfolio. In today’s fast-paced world, diversification is important. Shopping malls are known to deliver safe and consistent results over a span of time. They offer good passive income opportunities and ensure that your portfolio remains on track. If you are looking to shift to a new niche, shopping malls are perfect for you.
Also, apart from the diversification in property, you will experience diversification in tenants as well. Your tenants may include; food, banking, health and beauty services, automotive, and technology, and more. In short, it is easy to attract a stream of potential tenants.
If you are an investor who prefers good professional relationships, then shopping mall investment might be an excellent opportunity for you to get connected with like-minded people.
Owners of commercial properties are usually MNC’s and business owners. Unlike residential property owners, the owners of commercial properties firmly believe in B2B relationships which are built on professionalism and courtesy. When you are investing in real estate you should seek out someone who knows the ins and outs of real estate to guide you about mistakes to avoid when investing in real estate.
No Maintenance Required
In the residential sector, tenants usually damage the property. They break things around the house and often make no efforts to keep the place maintained. On the other hand, commercial properties such as shopping mall outlets are well kept and maintained at all times. A huge chunk of sales come from the outlook of shops, so the tenants leave no stone unturned to keep the place clean, tidy and presentable.
When you invest in residential properties, you have to pay for every expense because you are the sole owner of the place and it is your responsibility to arrange all the amenities for the tenants.
One of the biggest benefits of investing in a shopping mall is that you do not have to pay for all the amenities. The mall owners usually set up power systems, decor, security, and vice versa.
So, these were some of the major benefits of investing in shopping malls. Buying shopping centers is one of the best ways to secure your hard-earned money. Apart from getting a tangible asset, you also get monthly rentals and much higher ROI as compared to any other investment.
Want to learn more about real estate investments? Head on to Graana.com for more details.