Do you know that India is the fifth largest retail market in the world? Well, the Indian retail sector is a diverse and dynamic industry. Every year, new trends set this industry apart to grow in new dynamics. With the growing real estate market, retail investing is also gaining popularity. The retail industry experiences huge gains in times of recession and rising markets.
The cost-effective retail shop makes it a flexible and easy investment option for people looking to earn huge revenues with a small investment.
Do you know about the four R’s of retail shop investment?
- Return on Revenues (ROR)
- Return on Invested Capital (ROIC)
- Return on Total Assets (ROA)
- Return on Capital Employed (ROCE)
What is a retail shop?
What does a “retail shop” exactly mean?
A retail shop is a business enterprise that focuses on activities involving selling goods or services directly to the final customer for consumption or personal and professional use. The retail commercial shops’ sector is classified into seven segments – automotive, building supply, distributors, grocery and food, online, general, and speciality retailers.
Retail shops are the middlemen in the commercial supply chain and create a link between the manufacturers and the end users. The various retail types are Specialty shops, department shops, supermarkets, convenience shops, discount shops, Off-price retailers, superstores, hypermarkets, and cataloguing showrooms.
Why should I buy a retail shop in Baner Pune?
Baner is the prime location and socio-economic hub of Pune. This location is surrounded by numerous industries and IT hubs and has easy transportation access to all public transport. Investing in a retail shop in Baner, Pune can yield high returns on the investment. It makes for an attractive investment for people looking for an economical and not-too-expensive investment.
Also, the quality infrastructure of Baner makes it a unique setup for a retail shop and a promising real estate investment. All these benefits are enough to buy a shop in Pune.
Advantages of buying a retail shop in Baner Pune?
- Profitable Business Prospects:
Baner is located in Pune’s Western Metropolitan Corridor and is a residential and business centre. The nearby residential areas, IT hubs, educational centers, and entertainment hubs will benefit the retail shop by helping to expand the business with growing demand. The excellent connectivity and earning potential will bring profits in the long run. It makes Baner Pune a competitive space for retail investors by providing many profitable business prospects to the investors.
- Rental and Lease Opportunities:
Many business owners opt to rent or lease retail shops for their business in Baner Pune because of its strategic location, easy connectivity, low operational costs, and good business prospects. Investors can leverage this opportunity by owning the retail shops today and later providing them to business owners on rent and lease terms. Thus, renting this property in the future helps investors earn a steady monthly income.
- Low Operative Expenses:
Commercial real estate investment in retail shops in Baner, Pune is cost-effective as it involves low costs. The investor is free from all the property payment rates, such as real estate taxes, water and body corporate, area maintenance, and insurance. In retail shops, the tenant is responsible for all these expenses. Thus the property owner gets free from paying these taxes daily.
- High Return on Investment:
Retail shops in Baner, Pune provide a high return on investment as the gross rental return is higher compared to any other commercial or residential investment. With only a minimum initial investment amount to own the property, you can earn stable, high returns over a long period.
Things to keep in mind while buying a retail shop in Baner, Pune.
Buying a retail shop is a beneficial investment. But there are certain things that you should always keep in mind before buying a retail shop. Some of these aspects include:
- Choose the right location:
The prime consideration for any real estate retail investment is its location. You must ensure that the location you choose to invest in Baner, Pune has enough growth potential and is a promising one. The location should create existing and future demand and development, have connectivity with other areas of the city, suitability for the retail business, and have a high saturation rate.
- Determine the Property Rates:
Another important consideration is the property rates of that retail shop. You must compare various locations and weigh the prices against the benefits and future potential they offer. Determine whether the investment in the shop is worth spending a given amount by analyzing factors like future infrastructural development of the particular location, connectivity, rental and leasing rates, additional expenses to be incurred on the property, and more. It is advisable to choose the property only if you get a high ROI in the future for the current property investment rate.
- Understand the contract and the documentation:
You must understand all the necessary contract details of the retail shop before investing to ensure safety from future frauds or unwanted deals. The documentation should be systematic and secure to understand every term and condition. Get all the relevant papers for the property and verify them for security purposes and to prevent future legal implications.
- Income Potential:
The end objective of any business owner investing in a retail shop is to earn a high ROI on their minimum investment. Future income and returns matter the most. Determine the ROI rate, time to realize the return, average rental earnings, and average appreciation rate to check your income potential in the long run. Also, ensure that the income potential is not restricted to a particular segment, and analyze the future exposure to create more income.
Whether a new investor or a long-time investor, it is a good time to invest in a retail shop. Contact Ambrosia Galaxy for your investment in a retail shop. It provides the best property in Baner, Pune, for all investment needs. The Ambrosia Galaxy will help you look for the best retail space in your best interests. Get your own retail shop in Pune now to enjoy huge returns.