Why Invest in Commercial Properties?

These days, investing in property has become highly profitable, be it residential or commercial. It is a general view that investing in commercial property is more profitable than residential. Even after the real estate scenario has become a bit worrisome, investing in commercial properties has been perceived as a positive move, as more of commercial activities are taking place these days.

Jade Business Park, Mohali

Commercial property is defined as property that is meant particularly for business purposes, which includes retail buildings, office parks, restaurants, warehouses etc. The investor usually possesses the building and collects rent from the business that operates there.

Profits of Commercial Property

(1) Earning potential is higher here. As the income that is generated by the commercial property is related to its usable square footage, it is valued differently, unlike residential real estate.

(2) Cash flow is generally higher per square foot and on an initial investment.

(3) The leases are often much longer compared to residential property.

(4) Banks value commercial property differently. Usually, a down payment of 30 percent or more is required here.

(5) The landlord and tenant have more of a business to business customer relationship, which helps in keeping interactions professional and respectful, as the property is treated purely on business terms.

(6) As the retail tenants try to impress the customers by maintaining the store or office space whereas the owner maintains and improves the quality of the property. This will, eventually, increase the value of their investment.

(7) Unlike residential properties, where the tenant calls the landlord at any time either for some repair or something else, the owners of a commercial property do not have to attend late night calls from the tenant, as the business usually operated for a limited time.

Investment in Property

Even with these advantages, there are greater risks attached to commercial properties, when it comes to the damages that can happen to it as there would be regular visitors and customers. Moreover, for acquiring a commercial property, the initial investment is large, compared to the residential real estate. Nevertheless, it is more beneficial to invest in this sector, when we consider the higher financial reward.

Jade Business Park, Bird View

At this time, the first commercial project in Mohali, JadeBusiness Park- J90- by Mona Townships offers you space to boost your business and investment. It consists of 13-storeyed office suites with ultra-modern exterior façade and 70 percent open area, well-lit and ventilated corridors, lavish entrance lounge etc. It has been viewed as an ideal location designed to convey your business image to the clients and to guarantee the wellbeing of the people and enhance productivity. Visit us at  for more information.

Punjab Government offers pre cleared land banks to investors

To boost industrialization in the state, Punjab has created banks of pre cleared land along with the  required power supply, announcing this  Punjab Deputy Chief Minister Mr. Sukhbir Singh Badal at an investors meet said that “Punjab is the only state which is offering pre land banks which are ready to be given for setting up of industries”. He further said that all these lands have all the necessary regulatory clearances like environment and adequate supply of electricity.

Punjab currently has 300 hectares of land bank expected to go up by 2000 hectares. Investors can come to Punjab he added and check for themselves and if they feel they could set up businesses here the Government of Punjab will provide all the help required.

He also reiterated that the state has surplus power supply and recently they have moved from conventional coal based thermal power to more environment friendly solar energy. Investors will be facilitated through Punjab Investors Office and the time taken to get all the required clearances for any project has come down to 38 days, with the target being 30 days in future. 

Mr Badal further elaborated that the “unified regulator” department has been so successful in the one year of its existence that Prime Minister Narendra Modi had sent a team to examine the viability of this system and whether there is a possibility of a India Investment Office for pan India projects.

In the last one this unified regulator has got investments worth 15,000 crores and cleared around 163 projects.

Apart from land banks and surplus power supply, the state government is also offering exemptions to the tune of 90% in value added tax (VAT), also there are provisions made for self-declaration of taxes, the idea being that after a few months there would be no inspector entering any factory premises and the factory owners would be filling the self-declaration forms for various taxes themselves.

Mr Badal also added that to get more land banks to woo investors there should not be any forcible land acquisition from farmers. He further said that he was of the firm belief that any land acquisition, whether for state or central projects, should be a prerogative of the state government and it should be acquired through proper consent of the farmer and should be for public use only. He further pointed out that the Punjab Government model of acquiring land is in everybody’s interest with land owners and farmers getting market price of their lands plus displacement allowance, also the landowners and farmers got plots in authorised colonies under land pooling scheme for acquisition.

At a time when land acquisition has become a politically a hot issue, Punjab State Government with its policy of pre cleared land banks with more than adequate power supply has created valuable real estate for investors to come and invest in Punjab, with the unified regulator being a success there is hope and expectation among real estate developers in Punjab that the growth that they were waiting to see in Punjab will happen sooner than later.

WHY INVEST IN MOHALI

Mohali was built as an extension of Chandigarh, to lessen the housing strain on it. Officially known SAS nagar named after the eldest son of Guru Gobind Singh, Sahibzada Ajit Singh. Located to the west of Chandigarh, Mohali for long was under the shadows of Chandigarh. But not anymore, Mohali has emerged strongly as a separate city with its own independent identity. Lush greenery, peaceful environment and proximity to Chandigarh have helped Mohali to become one of the favoured investment destinations. 

If Gurgaon and Noida played an important role in development of real estate sector in the National Capital Region, it is Mohali that is acting as a catalyst for real estate growth in Punjab. There are many alluring reasons, such as low cost and better quality of life, for companies and individuals looking beyond metros and moving to Mohali.

As the economy is slowly healing, investor and end user sentiment is likely to encourage growth in real estate sector and tier II cities like Mohali are going to benefit the most.

Reasons for growth in Mohali

Increased economic activity: Mohali is witnessing rapid growth in sectors such as IT/ITES (IT enabled services), manufacturing, financial services and consumer goods have resulted in increased demand for commercial real estate space. 

Multiplier effect of growth: Due to these investments in residential real estate is growing consistently. Social infrastructure such as public amenities, health care, education and security is constantly improving so is the physical infrastructure.   

Lower real estate cost: Land and operating cost are much lower, due to which many foreign companies planning to set up operations are choosing Mohali as their favoured destination.  

Living standards: Due to better quality of life, climate changes and more green spaces in Mohali there is a rising interest from NRIs and retirees.  

Connectivity: The new International Airport which is under construction will further enhance Mohali`s reputation as an investment destination, the railway station in SAS Nagar connects Mohali to major cities like Delhi, Chandigarh and Ambala, there is wide network of roads including 52 kms of National Highway and 1272 kms of state highway connecting Mohali throughout the country.  

Presence of Educational Institutions: Some of the premier educational institutions like Indian School of Business (ISB), Indian Institute of Science Education (IISER), Army Institute, IIPM and many leading schools are located in the region, moreover there are plans by the government to allocate 1500 acres of land to develop an education city which will cater to different disciplines like engineering, tourism, hospitality management, sports, media etc.   

Healthcare: Some of the top league hospitals like IVY Hospital, Fortis Hospital and Max Super Speciality Hospital are in Mohali.

Factors Involved in Investing

Investors with a long term perspective and looking for diversification can explore opportunities for investment in Mohali, while the risk factors in Mohali as an investment destination is relatively less, as appreciation seems to be driven by fundamentals, the duration of the investment should be a longer one, minimum 5 years. One should look at growth drivers such as infrastructure, good location of the property, at what rate property appreciates? Is the project being delivered on time? Mohali is a good option if you rate them on these parameters, however since understanding of local dynamics is essential it is therefore useful to have a family member or a friend residing in Mohali to give a more detailed description of Mohali as a investment destination.

Some of the major developers like Mona Townships Pvt Ltd, Pearl Infrastructure, Ansal’s etc have some major projects under construction in Mohali.   

Mohali and J90 as an investment destination

Things to take care before investing in Mohali and why Jade Business Park is the best investment option. 

Mark Twain the famous English author once remarked "Buy Land they are not making it anymore" this holds true for real estate investors everywhere and especially in Indian context. 

The important and valid question that now arises is where to invest? Why are we focusing on Mohali as a prime destination for investment? 

Mohali near to Chandigarh is one investment zone that has consistently reaped healthy returns, officially named as SAS Nagar ,this quaint and beautiful town has been the catalyst of Punjab`s real estate growth in the last four years. The well established IT sector is driving investors from various socio economic strata of the society to Mohali. The city itself is picturesque with the presence of parks, lakes beautifully planned roads and landscaping that makes it score high on location attractiveness index too. There is a plethora of migrants from Chandigarh moving to Mohali because of the budgeted options available there. 

Mohali was developed by Punjab authorities to lessen the strain on Chandigarh however in very short span of time it has moved out of the shadows of its more illustrious neighbor and created its own identity as a niche and affordable investment destination for both commercial and residential real estate investors. 

Now the most important and pertinent question that arises why invest in Mona Townships Private Ltd maiden commercial parcel Jade Business Park spread over 13 acres have 13 storey of signature office suites and residential apartments giving you the perfect work life balance that you always wished and aspired for, the secret of Mona Townships success lies in its customer centric approach, unmatched construction standards and timely delivery of projects, in spite of all this the cost effective solutions speaks highly of Mona Townships.

As a part of its corporate social responsibility Mona Townships recently had the honor of having Deputy Commissioner Mr. Tejinder Pal Sidhu who initiated a tree plantation drive in Mohali with the aim to make Mohali the greenest city of Punjab.

J90 offers complete solution for every problem so that personal / professional life can be focused upon easily. Beautifully landscaped open spaces with features to engage in recreation, what J90 offers are premium residential apartments where working professionals can save time on commutation and cost also these apartments are packed with all major amenities that are required.

In today`s modern life commuting to workplace has become a struggle, half of the life is spent on travelling with no time to spend with family and friends, professional life also suffers because of all these pressures.

J90 provides the joy of seeing your children grow in front of your eyes and enjoy a stress free life where everything that you ever imagined comes true, where work does not seem like work, where pollution free, smoke free, eco friendly green  city welcomes you with open arms. Mona Townships provides you the best investment possibility because of their undying commitment towards quality, trust towards its customers, and keeping its ethics quotient to the highest degree where you can come and be assured of the best deal that you hoped for, where everything is transparent and communicated clearly before the final deal is closed. Mohali as a town is what Noida/ Gurgaon is to Delhi being one of fastest growing cities in North India. 

Mona Townships is undertaking many activities as part of its corporate/social responsibility which is worth emulating. 

Come let us all be a part of dream called J90 where work and life all come under one roof, where you can really be a part of a journey called life in all its magnificence. 

Find out more about J90 at http://monatownships.com/project/jade-business-park/sec-90-mohali