Most people in Bangladesh conduct thorough research before buying a home in Bangladesh. But how many of us actually take the time before investing in a commercial space? Often, many of us simply rely on information available through acquaintances, our own experiences, or on brokers to help us secure that coveted parcel of commercial land in Dhaka or Chattogram, not considering how extensive research can help ease our difficulty in the long run. Commercial real estate involves different factors compared to residential real estate, which is why you need to research the market well to find out whether it is a good idea to dive into the deep end of the real estate sector.
Commercial property is not just bound to an office building or a marketplace. It could combine a number of different services, depending on the size, location, and the demand at the time. Usually prime locations with high connectivity, currently including areas located near Metro stations, are preferred as commercial spaces as they are highly accessible. Areas like Gulshan Avenue and Kemal Ataturk Avenue in Banani are also sought-after locations, preferred by companies that sell premium services (Airlines & High-End/ Designer Boutiques and Accessories Stores) or cater to a niche market.
As an investor interested in spending money on commercial real estate, you should first conduct thorough research to find out all there is regarding your location of choice, your standard budget, and whether the plot you ultimately choose will be the one to yield the highest returns within the shortest possible time (or not). For example, while a plot in Motijheel will always be preferred by banks and financial institutions, foreign companies like Nike, Adidas and Puma will want higher visibility- going for locations like Banani, Gulshan, Baridhara & Dhanmondi.
The first thing you need to check is whether the location you have in mind is safe and secure as a neighborhood, and can be easily occupied by commercial spaces. Cheaper plots or spaces might have certain disadvantages, like a bad or heavily-populated neighborhood, dilapidated surroundings, or simply an inconvenient location that is not close to any bus stops or Metro stations.
The next thing that you must remember is whether the plot or space fits into your budget. Areas that are highly in demand will be pricier, especially if it falls in the tri-State area, or Dhanmondi. Similarly, office spaces in Bailey Road, Eskaton and Motijheel will also be somewhat costly- as they are quite accessible from anywhere in Dhaka, and are located near many amenities that are essential for both public and private offices. Depending on the kind of space you are looking for (shop/office/restaurant), your priorities might change accordingly. You might also choose a space based on whether you are looking for a place to rent out to others, or to buy for personal use (in which case you will need to look for something that is closer to your home, to make commuting easier).
It does not matter whether you are looking to invest in a commercial or residential space. What matters is that you have done sufficient research before you finally decide on the best option for you at this specific time. As long as you make a well-informed decision, you will not only break even, but you will make consistently high profits if you have invested in an area with a steady ROI.