Even though there is no simple benchmark that can tell you which real estate investment is better – a residential or commercial one, but still there are certain things that can help you to know which type of investment is actually worthy.
Common people often feel that investing in the residential properties is often lucrative, but experts say that commercial properties can provide you higher profit and give you a stable flow of income. India is considered as one of the most sought after back office destinations for most of the developed nations. With the growth in economy and business, the rental earnings of commercial properties are much more as compared to the residential counterparts. Also, the residential properties in the recent times have experienced inventory offloading which has resulted in the reduction of the new property launches and the cost of the properties as well. On the other hand, the commercial real estate has shown a steady growth with the increase in demand for commercial shops in Metro cities like Noida and Delhi.
However, when investing in a commercial property, you will have to do a sound research and planning so that you can enjoy maximum advantages. A commercial property located in a good location with good connectivity ensures higher rental returns. The metro cities and the tier II cities are popular locations for commercial properties.
Recent trends in Commercial Properties:
- IT companies, e-commerce, retails, and BPOs are the leading sectors that are looking for office space across the Indian cities.
- Because of the shortage of quality space, the rentals of the commercial properties have increased drastically.
- With developers expecting good demand for office space, construction is on the rise.
- Unlike in the past few years where demand was driven more by moving and merging of office space, this current year is expected to witness more of extension-based office dealings.
Investment always comes with the risks, but when the risk has the potential to pay off well, you should go ahead with that deal. So, if you want to take a smart move, then investing in commercial property can be more lucrative than residential ones.