Nowadays, there is an increasing number of real estate investors abandoning residential properties for commercial real estate, driven by the substantial appreciation potential of commercial spaces!
Compared to other investments, buying shops is lower-risk, hassle-free, and offers relatively objective returns. Here are the five major benefits of investing in shops!
After reading, you’ll understand why people say, ‘It’s better to buy a shop than to save money.'”p
1. Sustained Appreciation :
National policy regulation is currently focused on residential properties rather than shops. This is because acquiring land for commercial purposes is expensive, and the profitability of constructing shops is generally lower. Therefore, most developers opt for residential projects.
2. High Investment Returns :
In well-developed community-oriented shops, especially when there’s limited availability and a stable residential population supporting daily consumption, these spaces become highly attractive for leasing by chain supermarkets, restaurants, and other businesses. Investing in such shops often results in substantial rental returns.
3. Shops Appreciate with Age :
The value of shops is a comprehensive reflection of factors such as location and popularity. Therefore, the older a shop is, the more valuable it becomes. In bustling commercial districts that have matured over time, shop rentals tend to increase with the years, naturally elevating their worth. However, due to the considerable rental returns, few property owners are willing to sell, contributing to the rarity and value of older shops.
4. Stable Rental Returns :
Typically, tenants prefer signing long-term leases (2-5 years) to have sufficient time for their businesses to establish roots. Additionally, since they have already invested significantly in the interior design of the shop, they seek the security of a long-term lease. This approach helps property owners avoid the hassles of frequent tenant turnovers and vacancies. If the tenant’s business thrives, owners can also increase the rent annually, making the rental returns relatively stable.
5. No Need for Renovation :
- Among various real estate products, shops are arguably the most cost and energy-efficient investment. Tenants typically customize the shop’s appearance to align with their own style or the branding requirements of a franchise. Consequently, they often dismantle the existing decor, leaving the property owner with the simple task of providing basic amenities such as water and electricity.
- In summary, the investment threshold for shops is extremely high, especially in prime locations where shop prices often reach millions of currency units. While investing in the right shop can yield high returns in the future, thorough due diligence is essential before investing. It is crucial to assess whether the shop’s high selling price aligns with a correspondingly high return on investment to avoid potential losses.
If you want to explore more high-return shops, feel free to contact us. We can show you more shops with an ROI exceeding 5%.[ Click here ] or call the number 010-222 0400
Bizlocate, Business Location Solution Provider | Specialized in assisting businessmen who want to open a store to find a suitable store location
Website: https://bizlocate.com.my/
Phone: +6010-222 0400
WhatsApp: https://wa.link/f2zet7