Residential real estate is a clear winner as an investment option
The two main classifications for property investments are the commercial and residential establishments. There are pros and cons of the both the types of investments. In India, Commercial Real Estate is not as dynamic as Residential Real Estate. A residential property investment is more like a “need” in the Indian context whereas a commercial investment is invariably a “want”. There are different types of commercial properties in India. There are more and more options of residential real estate and the laws governing them. With the changing trends, there has been an increase in nuclear families and re-locations due to jobs; therefore, the flats in India have been in demand. More and more real estate developers offer housing options for the property investors.
On the other hand, there have not been much promotions as well as investments in commercial real estate. The returns from the commercial real estate investments are surely higher than residential real estate returns; however, there is a greater risk involved.
Taking in consideration the above facts, Makaan.com conducted a research among property buyers to evaluate which type of real estate has more investors. Unsurprisingly, 80% of the property buyers opted for investing in residential real estate while only 20% of property buyers said that they are looking for investing in commercial real estate.
A few other points highlighted with the results are as follows:
- There is a preference to begin the property investment with residential section.
- Individuals refrain from investing in commercial real estate as it involves a lot of legal sanctions and paper work.
- Buying a Commercial property is high on both, risk & reward as macro factors impact commercial valuation more than residential.
- Commercial investments are generally more expensive but they yield better ROI.
- There is less competition in commercial real estate but both the buying & selling is slightly more technical in nature when compared with Residential.
Investing in a property is considered to be a milestone in terms of financial investments; therefore, do a proper market research and survey prior to finalizing anything. For more of such poll reports and to cast your vote in a poll, visit MakaanIQ.