Commercial properties generally yield higher rental returns than residential properties. Rental yields for commercial real estate in key urban areas can range between 8% and 12%, significantly outpacing residential yields, which often hover around 2% to 4%.
Commercial Real Estate Investment
Invest Smartly: Commercial Real Estate Investment in India
- Minimum investment: ₹25 Lakhs
- Internal Rate of Return (IRR): Up to 18%
- Rental Yield: Up to 10%
15.12%
IRR
8%
Rental Yield
15%
IRR
9.04%
Rental Yield
Shere Palace
40+ Earning amenities, 15 Mins from Paud Bus Stand, 25 Mins from Hinjewadi IT Hub..
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15.35%
IRR
9.04%
Rental Yield
Cliff Cherry
Rent Starts From businesses Commerment, Revenue Sharing Model, A grade Tenant
Know More >Commercial Real Estate Investment in India
Open up the potential of commercial real estate investments with opportunities for high rental yields, stable returns, and capital appreciation. As India's real estate market evolves, commercial properties give investors a unique combination of income stability and long-term growth potential.
Whether you want to diversify your portfolio or seek a high-yield investment option, commercial real estate is a proven asset class that delivers stability and growth. With an entry point starting as low as ₹25 Lakhs, you can now access premium properties in India's top commercial hubs.
What is Commercial Real Estate?
Commercial real estate refers to property primarily used for business purposes. This includes office spaces, retail stores, warehouses, industrial properties, and even large apartment complexes used for leasing. Unlike residential properties, typically designed for individual living, commercial real estate is built to generate income for its owners by leasing to businesses or organizations.
Advantages of Partnering with Highyield
Why is Commercial Real Estate a Stable Investment Option?
Commercial real estate (CRE) offers a unique combination of higher rental yields, stable income, and long-term appreciation. Here's why
Higher Rental Yields
Stable Cash Flows
Unlike residential properties, where tenants may come and go frequently, commercial leases are typically longer-term, ranging from 5 to 20 years. This provides a steady, reliable income stream, making commercial real estate an excellent option for investors looking for predictable cash flow.
Potential for Capital Appreciation
With demand for commercial space increasing due to urbanization, business expansion, and e-commerce growth, the value of commercial properties in prime locations often appreciates significantly over time. This combination of rental income and property value growth offers a robust long-term investment.
Aspects to Consider While Investing in Commercial Real Estate
Before diving into a commercial real estate investment, assessing the critical factors influencing your investment's success is crucial. Below is a checklist of critical elements to consider.
Market Potential Assessment
Evaluate the local and regional market dynamics where the property is located. Look for cities or neighborhoods experiencing population growth, business expansion, and infrastructure development. High-growth areas tend to offer better rental yields and appreciation potential. Read More
Tenant Business Analysis
It's essential to understand the types of businesses occupying the commercial property. Are they stable, profitable, and in high demand? Strong tenants, such as well-established companies, reduce vacancy risk and ensure a steady income stream. Read More
Tenant Management Evaluation
Proper tenant management is vital for maintaining occupancy rates and minimizing tenant turnover. When investing in commercial real estate, consider properties with professional property management to handle tenant relations, maintenance, and lease renewals. Read More
Permissions and Clearances
Ensure the property has all legal permissions, building certifications, and regulatory clearances. Failing to verify these can lead to future legal complications and potential financial losses. Ensure full due diligence is done before proceeding with any investment. Read More
Employment Trends
Commercial properties in areas with high employment rates and job growth tend to attract more businesses. Investing in cities with a thriving job market increases demand for office space, retail locations, and other commercial properties, leading to higher occupancy rates and rental yields. Read More
Partner Selection
Choosing the right partners for your investment is critical, especially when working with a real estate firm or property manager. Look for partners with a proven track record of success who can help guide you through the process and manage the asset efficiently. Read More
Why Invest in Commercial Real Estate?
Commercial real estate investments offer unique advantages, making them a superior choice for many investors...
How the Investment Process Works
Investing in commercial real estate through our platform is seamless. We provide a fully transparent and streamlined approach to ensure your investment journey is smooth and successful.
1
Robust Asset Selection
Our team identifies high-potential properties in prime commercial districts.
2
Automated Sourcing
We source the best commercial properties for investment using cutting-edge technology.
3
Evaluation and Analysis
A comprehensive analysis of each property's financials, including expected IRR, rental yields, and market trends.
4
Due Diligence
We perform thorough legal, financial, and regulatory checks to ensure the property is ready for investment.
5
Investment and Asset Management
After the acquisition, our team manages the property, ensuring timely rent collection, maintenance, and tenant relations.
Blog Articles
Insights & Trends in Commercial Real Estate
Clients Testimonial
What are our Clients saying About us
Highyield's experience in realty excellence truly shows in the quality of their work. As a happy customer of one of their completed projects, I can attest to their commitment to building exceptional spaces.
MS. SUJATA
"With 15+ years of experience, Highyield is a trusted name in the industry that I would highly recommend to anyone looking for a reliable and innovative real estate partner. Will recommend Highyield to Everyone."
SRIHAR KULKARNI
"Highyield's expertise in the realty industry is second to none. With 18+ completed projects & ongoing, their dedication to delivering exquisite spaces is evident. Highyield truly goes above and beyond to make their clients' dreams a reality."
DR. SANTOSH DIXIT
FAQs
Why invest in AIFs instead of traditional mutual funds?
AIFs provide access to non-traditional asset classes such as real estate, private equity, and hedge funds, offering higher returns and diversification compared to mutual funds.
What types of risks are associated with AIFs?
AIFs carry risks such as market fluctuations, illiquidity, and leverage risks. However, these risks are mitigated through diversification and professional management.
What type of commercial property investment is most beneficial?
Office spaces, retail shops, and industrial properties in central business districts or high-growth areas are the most profitable due to strong rental demand and appreciation potential.
How much do I need to start investing?
The minimum investment amount for commercial real estate typically starts at ₹25 Lakhs, though this can vary depending on the property.
What is the typical IRR for commercial real estate?
Commercial properties' typical Internal Rate of Return (IRR) ranges from 12% to 18%, depending on location, asset type, and lease agreements.
How can I minimize risks in commercial property investment?
You can minimize risks by diversifying your portfolio across different commercial properties, selecting assets in prime locations, working with reliable tenants, and ensuring thorough due diligence during acquisition.
What is the difference between commercial and residential real estate investments?
Commercial real estate typically generates higher rental yields and longer lease durations than residential properties, often offering lower yields and shorter-term leases. Commercial properties also tend to appreciate more steadily over time, providing income and long-term growth.
How do I exit my commercial real estate investment?
Exiting a commercial real estate investment can involve selling the property on the open market or transferring ownership through our platform. You can also explore refinancing or lease agreements as part of your exit strategy.