Real Estate

Should You Lease or Buy a Commercial Space?

There is no doubt that establishing and keeping the business running requires a huge amount of investment. You will have to take care of investing in better and fully-equipped infrastructure, hiring experienced employees, and more. Furthermore, if you already have a business unit and now you want to expand it, then you may require good and bigger warehouse space for rent in Hyderabad.

However, when it comes to moving or expanding a business, it has been seen that most business owners get confused about whether they should buy or lease a commercial space for rent in Hyderabad. The income, forecasted growth, legal requirements, there are many such factors that you will have to consider to come up with the right decision. But which option should you choose? Well, keep reading to get the answer as here we have listed down some advantages of leasing as well as purchasing a commercial property. Based on that, you can make the right decision.

Some advantages of buying a commercial property

You will have better control over the property

If you are planning for a significant renovation, then it will be better for you when you have control over your property. By buying a commercial space, you can easily get a secured loan to support your business. What’s more? You can set your business hours as per your requirements. 

You will enjoy long-term monetary outgo

Speaking about the monetary outgo, it is the rentals that you need to pay over the years, and this may end up being much more than what you will pay to purchase the property. For example, if you have a retail store and the location of the property is crucial for you, then buying a commercial space will be a better option. This way, you don’t have to worry about future rent increases. 

The increasing value of the property

If you want to move your business to a location where the cost of the land is increasing, buying a space will make more sense than opting for commercial space for rent in Hyderabad. Different factors, such as improving social infrastructure, physical structure, or demographics, can make the price of the property increase. However, it would be better for you if you could identify those trends and make the purchase early. 

You will enjoy various tax benefits

Buying a property will lower the tax outgo. Purchasing an office space attracts tax deduction. Besides, you can take a loan by mortgaging your property, and you will enjoy lower interest on EMIs. 

Some advantages of leasing a commercial space

Easy availability

You can easily find a commercial space for rent in Hyderabad as most of the landlords in Hyderabad are now using their property as a commercial space as it allows them to earn more. Just search for a commercial space for rent, you can get a lot of options. 

Better cash flow

In terms of cash flow, industrial warehouse space for lease is better than buying a space. If you have a new business and your revenue has just started to build up, then renting or leasing can be a good option. By opting for a lease, you will only pay for the security deposit and rent for the first month. 

No maintenance cost

Well, most of the time, landlords pay for the maintenance of their property. However, expenses related to maintenance are quite lower in the case of leasing a property. But if you are buying it, then you will have to deal with all the expenses related to the maintenance of the structural soundness of the building. 


If your type of business requires you to move to different places, then renting a commercial space will work well for you. Renting or leasing provides you with better flexibility compared to buying the space. You can move your business to a new location whenever you want. 

Buying Vs. Leasing a Commercial Property

Even though there are a lot of advantages that you can enjoy by both leasing or burying, the ultimate decision will be based on your personal preferences. In terms of equity building, buying a commercial or warehouse space can be a good option, but if you are running low on budget, then you should opt for industrial warehouse space for lease. Before making any decision, understand your financial capacity and make your decision accordingly.

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