When allocating capital to real estate, one of the most common dilemmas is whether to invest in residential units or commercial spaces. Both asset classes possess distinct characteristics that cater to different investment horizons and risk appetites.
Residential investments typically offer lower entry price points, higher liquidity, and steady capital appreciation driven by demographic growth and urban migration. They are ideal for investors seeking stable, low-volatility returns and personal utility.
Commercial real estate, such as office spaces and high-street retail in prominent hubs like Bahu Plaza, generally commands higher rental yields (7% to 9% compared to 2.5% to 3.5% in residential) and longer lease lock-in periods with corporate tenants.
A balanced real estate portfolio often blends both: residential properties for long-term equity growth and commercial assets for consistent monthly cash flow.
