One of the most popular concepts in the realm of commercial real-estate today, an assured return project is one wherein the investor buys a commercial property before the construction is fully complete. The developer of the commercial project then starts paying a monthly return to the investor, which is a percentage of the investment that he/she has made. That percentage of return can vary from 9% to 12% of the total investment made. This money is later recovered when, upon completion of the project, the developer leases the commercial space out to businesses. The investor can therefore enjoy returns on his/her investment without having to wait for the space to be leased out. Additionally, the investor will also benefit from any future appreciation in the value of the commercial space that he/she may have bought.
Advantages of investing in assured return projects:
- When investing in an assured return project, you benefit in two ways. For one, you build an asset in the form of commercial property for sale that will likely lead to gains from capital appreciation. Secondly, you get a guaranteed return on your investment from day one, thus minimizing the chances of any loss or financial setback.
- As the developer must keep paying the investor a monthly return on investments until the construction of the property is completed, the impetus to complete the construction on time is significant for the developer. This makes assured return projects a low-risk investment opportunity for investors while the speed and efficiency of the construction process is almost guaranteed.
- The guaranteed monthly income is a boon for retirees and those investors who need a regular source of income and cannot afford to let their money sit for years in the hope of high returns. Assured return schemes are almost the only type of investment that yield returns from the very first day.
- When you invest in such a project, the return on your investment is not dependent on external market conditions and the rise and fall of property prices in your area. Instead, you will get monthly returns on your investment at a fixed rate or percentage that will not change, regardless of any changes in demand or supply.
When investing in an assured return commercial project, you should ensure that the project has all the essential characteristics of a world-class commercial space. Features you should look for in such an investment are as follows:
- The project should be developed over a sufficiently large area, with multiple floors and levels as well as adequate parking facilities. These facilities will ensure that once construction is complete, the commercial space will be easy to lease out and will attract customers and businesses from the surrounding areas.
- The commercial project should be surrounded by habitable and preferably well-populated areas. A commercial property in a sparsely populated remote area will be hard to rent or sell. It should also be easily accessible and located in an area that is well connected to the rest of the city.
So if you want to invest in an Assured Return Project in Gurgaon, Noida or any other part of the NCR, you should definitely check out the websites of the best known and reputed property developers operating in north India, who offer such investment options. This will ensure that you receive high returns on your investment with minimal risk of loss.