Assured Return Scheme in Real estate is a very popular term now a days. Real estate developers are lurring the public to invest their hard earned money in under construction commercial projects in Noida or Greater Noida. Commercial Builders in Noida are offering 10% - 12% assured returns to the customers on invested amount in their new launch or under construction commercial projects. Although after SEBI's Guidelines or RERA's Pressure many developers have stopped the assured return schemes.

So when you plan for invest in commercial properties in India there is always a big question - CAN WE REALLY TRUST ASSURED RETURN SCHEMES IN COMMERCIAL REAL ESTATE ? Let's understand the concept of assured return scheme and its methodology in Indian Real Estate Market.

What is Assured Return Scheme?

     - Assured Return Scheme means if any investor or end user invest in any commercial project with assured Return Plan he will be offered 10%-12% Returns annualy till possession time on invested funds by the developer. For the investor it is the best investment because 12% return on Investment is a dream which cannot get in fixed deposite, bank, mutual funds. and alongwith the assured return builder or broker also assure you for a better capital appreciation in future. Assured return scheme in Noida & Greater Noida is very popular among the small investors and property agents. You Can start investing in these properties from a budget range of  Rs. 5,00,000/- to 2,00,00,000/-.

How Assured Return Scheme Works?

 When we talk about Assured return there is always a question in mind that where these builders pay assured return from? For more clarity lets example, A commercial real estate builder get funds (Loan) for construction  from any Bank or financial institution. For these type of loans he generally pay the relatively high rate of interest, from 18% to 30% or above in most of the cases. In comparison to having funds from the Banks or financial institutions, the builders find it easy to raise funds from retail investors or property seekers on a low percentage of 10% to 12% anually. And most impartant part for the builder with this plan is that the builder can sell its inventory very fast.

When we search out for the properties in market we can see a huge difference in prices between neighbourhood projects with assured return or non assured return plans. For Example if You buy 1000 sq ft space in Bhutani Cyberthum Project in Noida so price for Assured return plan is Rs 5990000/-  and Price without Assured return plan is Rs 44,80,520/-

Are Assured Return Schemes Legal or Regulated?

Cabinet has recently banned unregulated deposit schemes so Assured Return schemes are declared as ponzy schemes by SEBI. Due to the role of RERA, people will ask for refund as henceforth such schemes will be considered illegal. Although few steps taken by the concerned authorities but some developers are still offering assured return schemes to the investors  using loopholes. 

Commercial Noida suggest that if you have huge amount of money and can afford to look for investment with risk, you can opt such offers of assured return projects by the Reputed Developers in that area, otherwise you should go with normal payment plans. Even if you still wish to invest your hard earned money in such AR schemes, you should calculate the net profit that you will get after all the expenses and taxes on the assured returns plans.  In that case, hire a professional commercial real estate agent to get the best deal with comparison with neighrhood projects. You are advised to get agreement vetted by a legal expert before entering into it. Your investments should be at a lower risk.