A Glance at Commercial Real Estate Investing

by admin

Posted on January 3, 2017


Commercial Real Estate in Egypt

Commercial Real Estate in Egypt :

We are surrounded by real estate. When a property such as industrial property, office centers, restaurants, medical centers etc. gets profit then it comes under commercial real estate.

Traditionally, investing in real estate proves to be lucrative one but still several investors don’t comprehend the dealing of real estate in the form of an investment.

One should understand the primary differences between commercial real estate in Egypt and traditional investing. Real estate is a resource that is uncommon compared to stocks and bonds.

Well, what is the typical investment process for a real estate investing? A particular area will have innate demand for real estate. Investors buy the property and gain in two methods:

  • Getting rent for making use of the real estate investment.
  • The appreciation in the commercial real estate investment in the due course of time.

Commercial properties generally are more profitable than residential properties.  Also commercial real estate investment is valued in a different manner than a residential investment.

Here are some of the reasons that work in favor of commercial real estate investments.

  • One gets good earning opportunity while dealing with real estate investments.
  • Those who possess commercial properties are generally not individual people but LLCs. They consider the commercial real estate investment as businesses. Since the tenant and landlord maintain a b2b customer rapport, the interactions turn out to be amiable.
  • Dealings of commercial properties are like businesses; you work in the limited timings and needn’t be pre-occupied with receiving a midnight call from a tenant. There will be an alarm monitoring services in case of commercial businesses and real estate deals in Cairo.
  • Consumer protection laws are not so much for commercial properties as compared to residential properties; the residential properties have regulations for security deposit limits.
  • The property prices of commercial real estate investments can be conveniently evaluated since you ask the present property owner’s income statement. After this you can conclude with a price.
  • The property managers are quite affordable in case of commercial real estate investments.

Here are the pitfalls of commercial real estate investment:

  • The time you invest in commercial real estate in Egypt is more than the one in residential investment. You will also be in a position wherein you have to handle multiple leases.
  • It is good if you are licensed when you manage all the maintenance concerns of investment by yourself. Also make a thorough evaluation earlier itself if you want to handle all the things related to leasing.
  • The initial investment of a commercial property calls for more capital compared to getting hold of a residential rental that is situated in the same area.
  • Several public visitors come to visit the property and this may cause some unforeseen damage to the property.

The key is that commercial real estate investments most of the times generate stable cash flows that is got through rental income. The economiesof scale is profitable in case of real estate deals in Cairo. Also customers are the steering factor of real estate just like any other business.

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