These days commercial property has become a better investment option and then residential for those looking to invest in properties at this point of time. Due to oversupply in the commercial real estate space, prices today are seeing ebb with respect to the residential ones where the price still fares better.
If we take an example of central Mumbai we will realize how large the gap between the prices of commercial and residential property is. Whereas a commercial property in Central Mumbai is priced at Rs 18,000 per sq. feet, the price for residential property stands at Rs 28,000 per sq. feet.
These trends follow in most of the cities except Kolkata and Hyderabad. Apart from Kolkata and Hyderabad, most of the leading cities are seeing the same trend. Delhi NCR has the highest concentration of under-construction real estate projects in the country with about 33 per cent of the total value. Same is the condition in Mumbai, with plenty of commercial properties in places like Andheri (East), Parel and Bandra Kurla Complex.
It is expected that demand for office space will increase owing to the change in a stable central government and a renewed sense of confidence among the industry. The atmosphere in the real estate sector seems to be slowly and gradually picking up. This is a prime time for investors to invest in commercial property to book and fetch larger gains. One can get properties at rates cheaper than residential properties and can also earn higher from rental income. So, there is scope for both capital appreciation as well as regular income.
