Real estate is becoming one of the most profitable investment markets in India. Chandigarh is a hotspot for property purchase or smart investment in the real estate market in the northern region of the country. The professional real estate consultants, are providing a wide range of world-class real estate properties.
Many investors get confused while deciding on their investment in a commercial or residential property. It is very confusing for a person having less market knowledge, or an amateur. In this informative, we will discuss some differential aspects of both types of properties to understand which investment is better in terms of financial yields.
Commercial Property
Commercial properties are those real estate products that are used for business purposes. If you are investing in any commercial projects in Chandigarh, your purpose should be either to open an office, a business, or for any other corporate activity. Commercial properties yield more over the years than residential properties. However, a prime location plays an important role in setting the bar higher.
Residential Property
Residential properties are purchased either for personal use or for rental income. People buy homes quite often. Although it yields lower returns than commercial properties in the long run. However, the ROIs are dependent upon various factors such as; location, size of the property, age of the property, and amenities, You can invest in affordable 3BHK flats in Mohali, Panchkula, and Chandigarh.
What Yields Better Returns In Chandigarh City?
Let’s compare the two different types of properties, and find out which one yields higher returns on investment in Chandigarh. Several internal and external factors are responsible for making a marginal difference between the two. Let’s some major factors here;
Commercial Properties
- Capital Appreciation
Commercial properties are more productive than residential properties. These properties yield more capital appreciation over the years in comparison. It also depends on the location preference. The prime location produces more value than the property located in the underdeveloped location. So if you wish to invest in commercial properties, make sure you consider the location.
- Higher Entry Cost
Commercial properties cost much more than residential properties. Even the relative registration and other costs are also high. So, when you want to buy or invest in commercial products, make sure you have a sound budget. It is recommended to take the help of an industry professional to make a smart purchase decision.
- Higher Rental Income
Commercial property is known for yielding higher rental income for a specific tenure. Usually, tenants rent an office space, business tower, or corporate space for a long term. You can rent a commercial property to earn a regular, higher rental income. It is a great source of additional income. The better way to earn better from a commercial property is to sub-let it to any big retail brands, famous banks, or multinational companies.
- Longer Lease Duration
Investors, businessmen, and giant retailers often lease a property for longer. A minimum lease duration is for 5 – 10 years, and the long-term lease agreement can be formed for a maximum of 99 years. However, the lease agreement can be renewed as per the requirement. If you have a commercial property in Chandigarh and Tricity, you can give it on lease for long years and earn additional income.
- Low Maintenance Cost
One of the biggest advantages of buying a commercial property is the low maintenance cost. The ultimate owner is not liable to pay for the periodic maintenance of the property as it has to be borne by the tenant. However, if the property is still with the owner, all the maintenance cost has to be paid by the owner only. In such cases, you can hire a professional service provider for the annual maintenance.
Residential Properties
- High Maintenance Cost
The demand for residential properties has resulted in higher maintenance costs over the years. You need to pay more to keep the health of your property healthy and functional. Heavy rainfall, harmful airflow, and hot summer days have a negative impact on the property and its infrastructure. Thus, you need to get it repaired periodically to fix different types of issues.
- High Market Value
A residential property yields High Market value with time. You can expect and demand a higher value for your existing residential property after a year or so. However, the market value of residential property grows less than commercial property.
- Low Entry Cost
Residential property can be purchased for a lower price than commercial property. Residential homes are affordable and pocket-friendly. The registration and other related costs are also low compared to commercial properties
- Sustainable Rental Income
When it comes to residential properties, you can earn a really good monthly rental income by subletting them. It is a good side income for many individuals. You can even sublet your property to multiple tenants by providing separate room sets with attached kitchen and washroom.
Hire A Professional Realtor
Making the right choice based on your needs, expectations, and requirements can yield better income for you. Make sure you understand the nature of both the properties. Although, it is an important decision to make, it is difficult too. Thus, it is suggested that one should hire a professional realtor to find the right property for better investment and income.
Most Demanded Real Estate Project
If you are seeking a promising real estate project that will produce better future income for you at an affordable price, you should invest in the 3BHK flats in Zirakpur. It is a strategic location offering all the modern amenities and advanced features. 3-bedroom sets are more convenient and spacious options for living.
Conclusion
Commercial properties produce better returns on investment, and they also yield higher rental income. However, if you have a budget bracket and you still want to invest in a smart real estate option, then you can invest in residential properties for sustainable rental income. The real estate market is booming these days, and either of the investments would be better in the long run for profitable rental income.