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How to Invest in Shopping Malls?

The real estate sector is expanding its tentacles in the country and playing a key role in economic growth. Along with it, it provides numerous commercial and residential investment options to people who are interested in this sector and who want to strengthen their portfolios. 

With more people getting involved in this sector, the residential vs commercial investment debate remain in limelight. Well! It is a daunting task to distinguish the most beneficial between them. Both investment options are considerable and preferred by savvy investors. 

In this blog, we will explore the benefits of investment in shopping malls and why we cannot overlook this option.

Being an investor, you will always look for a secure investment with a more steady profit. Shopping malls usually offer this. And if you are a novice in this field and in the first place, looking to build a portfolio with little capital then this option is perfect for you.

Below mentioned are some advantages of investment in shopping malls!

If you are perplexed and unable to decide which option is suitable for you. Then the following points might help you to finalize your decision

  • Greater ROI
  • Value-added investment
  • Stable and longer rental contracts
  • A proper maintenance structure
  • Least risky

Greater ROI

Shopping malls are usually located in key areas and their alluring designs, structures, and interior design make them more attractive and alluring such as The Hash Mall and Hash Residency. Both are located at significant locations in Bahria Town, Islamabad, and are being appraised because of their unique and aesthetic designs. These characteristics increase demand and attract investors. So, when there is a high demand, there will be high returns. For example, if you invest in the Hash Mall before 31st December, you will earn 4 years’ rental income at once 

Value-added investment

Shopping Malls offer all-in-one facilities. Nowadays, people do not want to squander their time looking for their needed items randomly. Further, because of their prominent locations and development in their vicinity, their value increases rapidly in comparison to other commercial and residential places. So, within a limited timeframe, you might generate considerable capital accompanying the unprecedented rise in the value of your property

Stable and longer rental contracts

Multinational corporations and Brands usually become your tenants in shopping malls. Irrespective of residential units, here it is quite easy to find trustworthy tenants. Firstly, the management of the mall takes care of every process and conducts screening of tenants. Further, local and international brands prioritize their reputation. So, they don’t create payment issues and secondly, they prefer long-term contracts. 

A proper maintenance structure

Shopping Malls management usually takes care of the maintenance of the mall. And for repair work, investors are not bothered. On the other hand, in other properties, investors have to manage all things including minor repair works and touch-ups. So, if you invest in a shopping mall, you will not have to worry about maintenance and upkeep work and will only be making high ROI.

Least risky

There are several stakeholders in a shopping mall. So, firstly, the risk is comparatively low. Further, if any issue emerges then you will not have to deal single-handedly as all stakeholders will strive to neutralize the issue. So, there are minor chances for fraud and losses in shopping mall investment.