How to assess/evaluate and how to value property are two separate but related things. We have recently written a blog article on valuing commercial property so you might want to read that article as well.
Let’s say you want to invest in commercial projects in Pataudi Road. How would you evaluate them? First, can you afford them? Talk to your banker and find out how much you can invest without jeopardizing your financial well-being. If the asking prices are higher than you can afford, you just saved yourself a lot of time and hassle.
Assuming you have the ability to buy, then you need to figure out whether you should. A key aspect is location. For commercial projects in Pataudi Road, the outlook looks good. The location is good and it is near at least 3 current or planned highways which will make travel easy.
Is the area dying or growing? No problem here either. Gurgaon and the extensions like Pataudi Road have been growing rapidly. For a commercial property, this is very important because it means there is a large base of customers and that base is steadily growing. This bodes well for the growth of the businesses there.
You also need to analyze the costs. Are you renting or buying? That means you have a monthly payment of either rent or a mortgage. But are there other fees as well as the variety of HOA (Home Owners Association) fees or condominium fees. If it a large complex, someone has to pay for upkeep and it is likely there will be some sort of fee like the HOA or condo fee.
You also need to be aware of whether these fees are too low. Sometimes these fees are just enough to maintain the property day to day. However, some should be put away for major repairs that will be needed with time as the building ages. If this money isn’t put away, large one-time charges might be needed in the future.