Are you purchasing commercial real estate or putting your existing property for sale in Melbourne, Axis Property can help you find the best deal. Whenever you look for a property for purchase or decide to sell your property, you’ve got to look at how the real estate market is operating.
Investing in commercial and residential property is a huge deal for anyone and none of us wants to be in a losing game. The real estate market, like many other sectors, is a dynamic business world and several factors impact the price of real estate you are interested in.
But, do you know how to figure out how the market operates, where the market is headed, and whether there will be a healthy return on investment for you?
Real estate is a major portion of wealth for homeowners in Australia and people invest a large fraction of their wealth in the real estate market each year. The numbers keep changing each year. For investors, this is a lucrative business land with endless possibilities.
Whenever people invest in commercial real estate, they wish to earn a good return, but there are no formulas on how to enter the market and leave with a colossal profit. This does not mean people invest blindfolded in this market. There are case studies, records, and some key market drivers to provide an outlook of the market.
There is a widespread belief among investors – ‘you should only invest your money in real estate when the market is going up. To decide whether the market is going up or not, market drivers provide a better understanding of where the market is headed.
For the unversed, market drivers are a positive influence on the real estate market which may include economic, political, and psychological influences. If you are looking to invest in commercial real estate in Melbourne in 2022, these key market drivers can shape your investment:
Yields – Whenever investing in real estate property, yield, the rate of return is always a major concern among investors. Regardless of the property, you are interested in, you will always be concerned about the potential future income on your investment. It is beneficial to understand where the yield is high at present. Commercial property yield is greater compared to residential property [1] as businesses are willing to pay more than residential tenants for the property.
Get in contact with Axis Property for in-depth knowledge of commercial real estate management in Melbourne. They will help you shortlist the best commercial properties in Melbourne by studying hundreds of probable options. You can also list your property on Axis Property and they will find the best buyer for you in the market.
Business Confidence – Real estate investors often base their transactions on business confidence. Business confidence makes it easy to predict how the market will perform in the next 8 to 12 months period. It shows how businesses predict their operations – whether it is likely to go upward or not.
If they see an upward trend, they are likely to extend their operations and look for new premises which will impact the commercial real estate market positively. For people looking to list their properties on commercial real estate, they must keep a tab on business confidence.
Occupancy Rates – The occupancy rate is another important factor that helps determine the performance of rental properties in real estate management. Occupancy rates reflect how crowded the commercial or residential property is. If a property has a low occupancy rate, investors predict the property to be less desirable and it looks less valuable to the investors making it unlikely to be purchased.
If your property is located in a neighbourhood with a high occupancy rate, you are likely to attract genuine investors who can take the price of real estate or even commercial property to new heights.
Come find the ideal real estate investor for your property with Axis Property – the best real estate property management agency in Melbourne with a decade-long experience in this field.
