Investors are increasingly drawn to commercial properties, as they offer higher returns compared to residential options. While residential properties traditionally provide lower returns (around 10% annually), commercial properties can yield 20-25%. The commercial property market, however, carries higher risks, particularly in finding tenants. Unlike residential properties, where demand is stable due to the constant need for housing, commercial properties depend on economic factors that influence business activities. Even so, the recent economic recovery in India has enhanced demand for commercial properties, especially office spaces, retail units, and IT hubs.Commercial properties typically come with long-term leases, often five years, which provide stability for investors. This is in contrast to the 11-month leases commonly seen with residential properties. Rent in commercial properties is also higher, and tenants tend to be well-established corporations, government agencies, or wealthy industrialists, reducing the risk of non-payment.Though maintenance costs for commercial properties can be more expensive than those for residential ones, these costs are typically borne by tenants. This is a major advantage for investors since they don’t need to worry about upkeep expenses. However, it is important for investors to consider the potential renovation costs when purchasing older commercial properties, as these could require significant investment to meet modern standards.Despite a higher initial investment and perceived risks, commercial properties offer better returns and security in the long term, making them a promising option for investors, particularly as the economy strengthens. With an increase in demand expected, particularly in commercial office spaces and retail, now is an optimal time to consider this type of investment. Investors should also note that smaller commercial units are available at more affordable prices, making entry into this market more accessible than ever before
