Virtual or Non-Lockable Property Investment in India
In the last few years, especially after 2021, the Indian commercial real estate market has evolved quickly, and many new investment options are gaining popularity. One of the latest trends in investment is virtual or non-lockable commercial properties, which are attracting investors looking for high returns and passive income. This type of investment option is gaining popularity due to its affordability factor, hassle-free ownership, and the potential for high returns or lease guarantee, which can be a source of excitement for potential investors.
But the main question is, is this investment option the right choice for you? In this blog, we will explore this new real estate investment concept, its advantages and disadvantages, and answer the most frequently asked questions.
What is a Virtual or Non-Lockable Property Investment?
A virtual or non-lockable commercial property refers to a space that is part of a large portion but the investor does not have physical possession or can lease it independently. In this option, the investor gets an assured return or monthly rental income from the property, which is managed by a developer or a leasing company. These property investment options are mainly in high-street retail spaces, shopping malls, IT parks, and co-working spaces.
How Does Virtual or Non-Lockable Property Investment Works
- Investors buy a portion or complete share in a commercial project
- The developer or leasing company manages and leases out the property on behalf of multiple owners
- The rental income from the property is distributed among investors based on their share percentage in the property
- These types of properties often come with assured returns or lease guarantees
Advantages Virtual or Non-Lockable Property Investment
Assured Rental Income
Almost all virtual properties offer assured rental returns, typically between 6% and 12% per annum, depending on the invested amount. This ensures steady income without active management by the buyer.
No Tenant Management
In the virtual property option, investors don’t have to find tenants, negotiate leases, or manage maintenance, as everything is handled by the developer or leasing company.
Affordable Entry Point
Unlike lockable commercial spaces, non-lockable property investments require little capital, making them accessible and affordable for small investors, ensuring that everyone can participate in this investment opportunity.
Diversification of Portfolio
Investment in virtual properties allows investors to diversify their portfolio without purchasing large office spaces or retail shops, reducing risk.
Higher Liquidity & Resale Potential
Some developers offer buyback options or easy resale, making it a relatively liquid investment.
Tax Benefits
Rental income from commercial properties qualifies for tax deductions under Section 24(b) for interest on loans.
Disadvantages of Virtual or Non-Lockable Property Investment
Lack of Control
Since investors in virtual or non-lockable property cannot directly lease or manage the property, they must rely on the developer or leasing company’s efficiency and reputation.
Dependency on Market Conditions
Depending on the circumstances, rental income may be reduced or delayed if occupancy rates drop or the property under performs.
Longer Investment Horizon
Virtual properties are best suited for long-term investors as resale options may take time.
Risk of Developer Default
If the developer faces financial difficulties, rental returns may be delayed or stopped.
Legal & Regulatory Risks
Some non-lockable properties operate in grey regulatory areas, so proper due diligence is crucial before investing.
Commercial Project in Delhi NCR for Virtual Property Investment
- M3M The Line, Sector 72 Noida
- Bhutani City Center, Sector 32 Noida
- Raheja The Delhi Mall, Central Delhi
- Mahagun Marina Walk, Greater Noida West
- Bhutani Cyberthum, Sector 140A Noida
- Orion 132 Noida, Sector 132 Noida
- Aarize – The Tessoro, Sector 114 Dwarka Expressway
- M3M The Cullinan, Sector 94 Noida
Conclusion
Investing in virtual or non-lockable commercial properties in India can be a smart way to earn attractive returns with minimum management hassle. These types of commercial properties offer promising income potential, but it is crucial to be aware of the risks involved, such as reliance on developers and the market situation. To make a good and profitable investment, you should always do thorough due diligence, assess the expected returns, and verify documents, ensuring that you are making an informed and responsible decision.
If you’re considering investing in virtual or non-lockable properties or have any questions, feel free to contact me at 9811741277 or email me at hello@vikasjoshi.in
I’d be happy to assist you in making an informed decision!
Read: How to Build Wealth Through Rental Income in India
Frequently Asked Questions (FAQs)
Is virtual or non-lockable property investment is a safe option?
Investment in such properties is relatively safe when they are backed by reputed developers and have clear legal documentation. However, investors should check payment terms, lease agreements, and developer track records before investing.
What is the minimum amount required in virtual or non-lockable property investment?
The minimum investment amount varies by project and location but usually starts from ₹10 lakh onwards, making it more affordable for small investors.
Can I sell my virtual property investment quickly?
While resale is possible, it may take time. Some developers offer buyback guarantees, but secondary market liquidity can be challenging.
Do virtual or non-lockable property come with assured returns?
Yes, most virtual or non-lockable commercial properties offer assured returns ranging from 6% to 12% per annum for a fixed period or until possession.
How do you choose the right virtual or non-lockable property?
To invest wisely, consider:
- Developer reputation & past projects
- Property Location & demand potential
- Lease agreements & rental guarantees
- Exit strategy & resale options
- Legal clearances & regulatory compliance