Commercial real estate investment has always been an attractive option for investors. They can acquire high-yielding properties to boost their profits. יתר על כך, unlike residential properties, their market value tends to remain constant over a long period.
During the past two decades, i.e. מ 1997 ל 2017, the commercial property market in Australia has gone up. Investors were able to earn huge profits through their investment. This is the reason why more and more investors are showing an interest in commercial properties.
Back in the day, only large-scale investors could invest in these expensive yet profitable properties. למרות זאת, property syndicates have gained popularity among small-scale investors. It allows them to pool funds to invest in properties that could help them earn revenue.
Let’s take a look at some prominent commercial property investment trends from the last decade:
More Investors Have Entered the Commercial Real Estate Market
During the past decade, it was noticed that investors are more interested in buying commercial properties as compared to residential buildings. It’s because the hype was created that commercial real estate investment is a profitable option.
Some of these investors relied on market analysis reports to make a decision. למרות זאת, a majority of them believed everything they learned via media reports.
It’s extremely important to understand local market conditions. You can’t invest in properties in Perth and expect huge profits just because commercial properties in Sydney and Melbourne are doing well. This lack of insight caused losses to many investors in the last 10 שנים.
Investors are Moving Away from Urban Areas
The history of Australia shows that a majority of investors prefer buying commercial properties in urban areas. למרות זאת, this trend has changed over the past decade. Now investors are looking for investment opportunities in smaller cities and towns instead of big cities.
It’s because the population in smaller regions has significantly increased and business people are looking to establish businesses in these areas. The increasing demand of properties for offices and shopping centres has led to a rise in the value of commercial properties.
The Focus is on the Yield
When acquiring any commercial property, real estate investors consider its yield. It has created opportunities for data analysts to find a way in the investment market. They compare the potential yield of different properties to make the right choice.
Over the past decade, many investors have also acquired the services of consultants to determine whether or not it’d be a profitable decision to buy commercial properties. You can consult Stamford Capital Investments for investing in the commercial real estate market.
Investors Update the Properties to Provide Solar Power
The costs of electricity in Australia are the highest in the world. לכן, people look for alternative options to generate energy and save on the electricity costs.
Noticing this trend, commercial property investors are also interested in buying properties equipped with rooftop solar panels. They update the properties to provide solar power in the building. Not only does it increase the value of the property, but also attracts more customers.