Investments in commercial real estate, particularly in large mall networks, have a number of significant advantages, so a lot of private and institutional investors are interested in this investment segment.
Commercial real estate rises in price much faster than residential premises. Furthermore, the cost of renting commercial real estate is approximately 50% higher than renting residential premises. According to experts, the commercial real estate market has a significant growth potential, which will last for many years.
The increasing living standards contribute to the increase in consumption of various goods and services, especially in large cities with a population of one million people or more. Due to the increase in the number of financially active population, the demand for goods and services is increasing. And entrepreneurs are in place to satisfy this demand. Therefore, there are rarely any difficulties searching for tenants in the malls. Which, in turn, positively impacts the business of companies that own retail space.
For this reason, investments into large mall networks rightfully occupy a worthy place in the investment portfolio of our fund.