Commercial Property in Ahmedabad - Iconic Shyamal
5 Key things that will affect the price of your commercial property in Ahmedabad.
Understanding the real estate market is not an easy task. Several bankers, lawyers and economists are trying to predict how the market will work over the years.
Some funds managers have also started looking into REITs that work as ETFs for real estate. But this does not mean everyone will be able to accurately predict how the price of your commercial property in Ahmedabad will move. If you are considering an investment in the space of commercial property in Ahmedabad, here are the 5 key factors you should be aware of. They are industry agnostic and might have an impact on the return you get on your commercial property in Ahmedabad:
The biggest factor to impact the price of your commercial property in Ahmedabad, is the locality in which it is located. Several investors and sellers in the market have observed that fairly old properties in the most developing areas in the city fetch better prices than the newest projects in secondary areas.
When you look at areas like Satellite, Sindhu Bhavan Road, CG Road or even Prahladnagar – you are considering the most prime locations in the city. Prices in these places are high, but they also assure a good degree of return on your property.
2. Developer’s Brand.
Yes. Some projects have a great valuation profile, just by the virtue of the developer who has worked on the project. This works out because the market equates the quality of the developer’s other projects with the quality of the commercial property in Ahmedabad that you might be considering to buy, if it is brought together by the same developer.
3. Amenities in the Property.
If you thought that amenities and features were necessary only in the residential space – you are highly mistaken. Investors who are entering the space of commercial property in Ahmedabad are increasingly looking for high-end amenities from their prospective assets.
This might include safety and security systems, connectivity, design, light, Vastu and a few other factors depending on the type of the property.
4. Property’s Age.
This has an impact on both the legalities and price associated with the property. Many investors who are looking for more investment avenues in the market of commercial property in Ahmedabad don’t prefer buying properties that go beyond 10-15 years of age.
This is critically important if you are seller because it helps you set the right expectations. It’s not that older properties are not sold in the commercial property market. It’s just that in order to ensure that your older commercial property is sold without any issues, it should be compliant with the market trends and legal updates necessary.
5. Historic Value.
Some sellers set the price of a commercial property in Ahmedabad simply based on a multiple of the historic cost they have born on it. For normal properties, this would not make a difference. But if the property has been through disputes, they might account for it in the selling price.