In October 2022, the Minister of Commerce and Industry, Piyush Goyal, said that Maharashtra is all set to be the fastest-growing state in the country. Right at the heart of this growth is the financial capital Mumbai. Each year, the city has witnessed exponential growth in its retail and commercial businesses, and hundreds of thousands of Mumbaikars decide to start their own enterprises. What this means for the real estate sector is a constant upcurve in demand for commercial spaces. As a business owner, one of the most important questions you need to answer is, &ldquo;Should I buy a commercial property or lease a space?&rdquo; The answer will depend on several factors, but the odds are certainly stacked in favour of buying.

<ul>
	<li>Asset creation &ndash; One of the greatest advantages of buying a commercial property over renting or leasing is the creation of an asset that is likely to appreciate in value. If you opt for financing, you may have to put in a down payment, but considering the high rentals, your EMI will go towards equity building and not merely cash outflow. If your business model requires a change or you move to a different locality, you can still lease out your commercial property and maintain an income stream.</li>
	<li>Tax relief - Owning a commercial property comes with several tax benefits you can take advantage of. As the owner of a commercial property, you can claim a flat 30 per cent standard deduction on the spending made towards repairs and renovations of the property. If you take a loan to buy or construct your commercial property, you can also claim deductions on the interest repayment of your loan. You can also claim asset value depreciation if you buy commercial property and run your business from the premises.</li>
	<li>Freedom of modification - If you plan to rent out the commercial space after buying it, your investment in furnishing and modification is minimal at best. Most retail corporations, businesses, and banks prefer to furnish and do up commercial spaces themselves. If you intend to use it for your own purposes, you have complete freedom to modify your premises. Commercial space on lease will need to be done up by you, an expense that will not add to your business value. You may also have to consider the restrictions imposed by the owner in this case.</li>
	<li>ROI Advantage &ndash; Most investors fear that buying a commercial property may not allow them the flexibility to move their premises if need be. This could not be further from the truth. If you buy a<a href="https://blox.xyz/buy/mumbai/commercial-property-for-sale"> commercial property in Kandivali East</a>, for example, and later decide to move your business to Malad, you can still rent or lease out the property creating a stream of income to offset your new lease. The prices of commercial properties in most places are on a constant growth curve, and the ROI is just as attractive.</li>
	<li>Market power &ndash; The real estate market in India has always been tilted towards the seller. This is more so in the case of commercial real estate. The high demand makes your office space, showroom, warehouse, or restaurant space an appreciating asset. So much so that homeowners are converting their <a href="https://blox.xyz/buy/mumbai/kandivali/1-bhk">1 BHK flats in Kandivali </a>and other Mumbai suburbs into office spaces for lease. The market power is undoubtedly in favour of property owners.</li>
</ul>

Leasing a commercial property may be wise if you cannot fund the down payment or secure financing or if you need business premises urgently. All things considered, however, owning a commercial property is a great value proposition.