Buying or investing in commercial property is a huge decision and must be thought about long and hard. Amongst the considerations to be made are, acquisition cost, possible agency fees, legal fees and building structure.
But, one of the most important aspects to be considered is, as the old saying goes, location, location, location and have you ever considered purchasing commercial property in India?
A investment report from consulting firm Cushman & Wakefield stated that the Indian commercial property sector has been projected to experience a boom from 2010 to 2013. The Economic Times wrote: ‘Very few of the world’s commercial real estate markets have undergone such a dramatic and rapid change in such a short span of time as India’s has. The next few years will see a quantum spurt in the services and knowledge sector, opening up tremendous opportunities for the retail investor.’
A place which pertinently represents India’s recent commercial property growth is, Gurgaon, which is Located around 15 miles to the south of New Dehli. Gurgaon barely even registered on the map just twenty years ago, yet is today home to some 26 shopping malls, 7 golf courses and a huge number of luxury, designer shops. According to Jim Yardley of the New York Times, ‘apartment towers are sprouting like concrete weeds and a futuristic commercial hub called Cyber City houses many of the world’s most respected corporations.’
Whilist often being portrayed as a symbol of the ‘new’ India, Gurgaon is not without its controversies. There is no working sewer system in Gurgaon and the utilities such as electricity and water are a less than a reliable commodity.
Jim Yardley is scathing in his assessment of Gurgaon, writing: ‘how can a new city become an international economic engine without basic public services? How can a huge country flirt with double-digit growth despite widespread corruption, inefficiency and governmental dysfunction?’
With rapid growth forecast, India would seem like an ideal place to invest, but there are many issues which would require looking into. Everything is not always as it appears on the outside.
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