What is virtual space in Commercial Property Investment?
Virtual Space Investment is an investment into non-lockable areas or space. Virtual space is as good as any other commercial property like a lockable space. The difference being the fact that the investor/owner is given the possession (keys) for a lockable commercial space whereas in a virtual property, space gets registered in the investor’s name but one doesn’t get physical ownership of it.
The benefit for an investor is that the investor need not worry about the maintenance, care, and tenant stability of the ‘owned’ space during and after the construction of the property, hence investing in a Virtual Space is ideal for investments aimed at regular returns where an investor gets monthly fixed rentals because of big brand tenants with long term lease agreement ensuring stability & better growth of return, along with regular income, Virtual space also offers capital appreciation similar to any other property investments and most importantly all these benefits with small ticket size investment starting from as low as fifteen lakhs.
Before investing in any virtual space or for that matter any other commercial property, here are few things that you need to check:
1. RERA & HMDA Approvals:
The sole reason to invest in any commercial property is to enjoy the returns, while you’re investing in any property, the first thing you have to check is whether the property is approved by the Government or not. Check for the approvals such as RERA and HMDA since RERA which safeguard the interest of the buyer.
In Hyderabad, one such property offering virtual space investment is Sensation Bhoomika Mall which has got RERA and HMDA approvals along with all pre-requisite permissions, making it a risk-free investment option for investors.
Permissions obtained in the name of M/s. Sensation Infracon Private Limited includes RERA Approval [ RERA Number: PO2400001798], HMDA Sanction, Environmental Clearance, Airport NOC, Cyberabad Police Commissioner NOC, Soil Test Strata Report, HMWSSB Feasibility Certificate for Water & Sewage Connections, Traffic Impact Assessment, Non-Agricultural Land Conversion Order, Contractors Insurance, Provisional Fire NOC, Traffic NOC.
2. Location & Location Demographics:
It is all about the location when it comes to investing in commercial real estate. When it comes to buying commercial property, there are many factors that come into play such as accessibility to roads and public transport, distance to neighboring cities, and infrastructure projects currently in development in the area. Especially in the case of commercial properties, the location of the property is really important since a good location will attract good tenants and a good tenant pays you good rent.
Sensation Bhoomika Mall’s Location is one of its USPs, it is situated just 2 minutes away from Narsingi Junction, and it enjoys the three road access to the financial district, Manikonda, and Kokapet. With no other mall in 10 km radius, surrounded by multiple Hi-end Gated Communities such as Accurate Wind Chimes, My Home Avatar, NCC1, Rajapushpa, Jayabheri, Poulami, Lansum to name a few where the minimum per sq ft cost of these communities is around Rs.7000 which means that the crowd in and around that locality belong to medium-high income groups who will be the potential clients to the mall. Not only that Sensation Bhoomika Mall enjoys a student population as well who would be the potential customers to the mall from Universities such as CBIT, MGIT, Vasavi Engineering college, ICFAI Business School, and many more.
3. Is the property pre-leased or not:
Simply understood, a pre-rented or pre-leased property is one that already has tenant/s and thus offers assured returns and a fixed income for a buyer. Preleased properties are one of the best property investments that one can find in the real estate market. Preleased properties assure that you start getting returns on your property investment from day one. Apart from the recurring rental income, your property investment also appreciates in terms of capital over a period of time. Generally, commercial properties are preferred as preleased property investments over residential properties. In the Indian real estate market scenario today preleased properties that yield around 6-9 % in terms of returns are considered to be good preleased property investments.
Benefits of investing in a pre-rented property include assured returns, low-risk factors, tenant stability, and capital appreciation. Sensation Bhoomika Mall & Multiplex has got a tenant that everyone will feel proud to be the owner of i.e, the multiplex giant, PVR Cinemas (Sathyam & PVR Consortium). With 18 years as the lease period with PVR Cinemas and 9 years as the Lock-in Period, it is no doubt that it is one of the best investment options with Assured Returns and no risk involved. The investment option comes with a fifteen lakhs* investment with 10,500 guaranteed rental along with Revenue Share from PVR Cinemas in the multiplex area and with twenty-two lakhs* investment with 15,000 rent per month in the ground floor making it a risk-free and profitable deal.
4. Current stage of the property:
Real Estate offers its investors the flexibility to invest in a Risk-free with medium returns option, for example, Ready- to-move in projects comes with medium returns since it is no-risk involved and a pre-launch project comes with higher returns as there is risk involved. The investor will become a smart investor only when he knows how to balance between the both and here comes in the picture another investment option with relatively higher returns and relatively lower risk than the above-mentioned options [Under construction properties]. Sensation Bhoomika Mall is a perfect investment option since it is in the stage of construction which makes it a low-risk investment option and also giving it a huge scope of capital appreciation by the time of possession of the mall. The current per square feet price of 15,000as of July 2021is likely to increase till 18000-21000per square feet within the span of 1 year i.e., by the time of possession which is expected to be by July 2022.
Enjoying all these advantages such as good location & good location demographics, with construction full-on swing, along with all approvals and a tenant like PVR cinemas with 9% ROI along with Revenue share after possession of the mall and also huge capital appreciation within 1 year, Sensation Bhoomika Mall makes itself as one of the best investment options and now is the best time to invest.
For more details, get in touch with the author and Commercial Analyst, Ms. Yasaswi Ramireddy from a leading Real Estate Advisory company, My Square Realty which is a one-stop destination for all your Real Estate needs.