Four pointers to buying a commercial property in India

Four pointers to buying a commercial property in India

Four pointers to buying a commercial property in India

Various companies from sectors such as software, IT and BPO industries have been expanding their operations in India. Therefore, there is an exposure to commercial properties ranging from office spaces to warehouse facilities and restaurants to shopping malls. With the demand and development of commercial properties and investments, the need is to identify the way by which you can acquire successful commercial ownership.

Market Research

A through market research before buying any property is a must. However, the need increases manifold when you are buying a property for business or commercial purposes only. It proves to be highly beneficial if you have entire knowledge about various options, property types, mortgages, financing, extension approvals, infrastructural laws and remodeling.

Vacancy rate

An important thing to keep in mind while doing the market research is to have knowledge about the current vacancy rate. Go through the data of the vacancy rate that has been there over the past few years. A high vacancy rate is generally not a good reflector of the neighbourhood.


Location is the most important thing while choosing a property. In case of commercial property, always see how centrally located or reachable is the property. For example, if you are planning to set up a retail business, consider an area with high foot traffic. The high foot traffic will give the business exposure. On the other hand, in case of setting up a manufacturing facility, go for a space in a warehouse district.

Another important aspect while finalizing the location is to check out the competition. There are both positive and negative factors attached to high competition in a locality. On one hand high competition means that your outlet will have to fight through the situation while on the other hand a healthy population of any particular type of outlets means that there is a healthy population of customers.


Always know your customers or target audience before opting for a property. For example, if you are planning to open up a showroom upholding international brands, then choose a posh locality. Similarly, if the idea is to open up a fitness center, choose a locality that has high concentration of youths rather than a retirement facility.

Last Updated: Wed Jan 23 2013

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