Buy or rent your office space?
30 March 2019 
Have you already thought about acquiring your own business premises rather than renting them? The current situation on the real estate and banking markets is particularly favourable. Everyone benefits, both on a financial and an operational level.
An SME can become the owner of its own premises within 15 years, in return for a monthly instalment similar to that of a rental payment. Today, purchasing 200m² of office space – including parking places – will set you back about €200,000. At current rates, it will cost approximately €1,350 per month to repay the loan, roughly the equivalent of a rental payment. Even if you have to wait for 15 years, the property belongs to you!
Being an owner has its comforts on a number of counts: the company can adapt its premises as it sees fit and for its own personal gain. It no longer needs to restore the property to its original state at the end of the rental contract – and if it opts for a larger space than that required for its current needs, it can easily adapt it in line with future growth. In the meantime, it can rent out part of its premises.
There are also benefits on a fiscal level. The loan will gradually be amortised and the company’s balance sheet will improve over time, with a positive impact on its financial situation. Moreover, the gross returns on commercial property, ranging between 6 and 10%, are twice as high as those for residential property and, in the long run, there is a real chance of making a profit on the resale. Finally, the purchase results in an increase in the value of the company which can only be of advantage to its shareholders.
The current market situation means that the prospect of owning a property is now particularly enticing. This is due to the coexistence of two fairly exceptional factors: the oversupply of commercial space, resulting in historically low prices and interest rates at an equally historic low of 2 to 3%. There is no guarantee that similar conditions will prevail in the future.