“𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲? 𝐓𝐨𝐨 𝐫𝐢𝐬𝐤𝐲, 𝐬𝐭𝐢𝐜𝐤 𝐭𝐨 𝐟𝐥𝐚𝐭𝐬.”
That’s what everyone told me in 2019. But residential rental yields were barely 2-3%, and tenant hassles were endless.
I took a calculated bet on commercial real estate. Today, it’s my most profitable decision.
The Residential Reality: ✗ Bought 2BHK for ₹45L — rental yield just 2.6%
✗ Constant tenant turnover every 11 months
✗ Maintenance complaints, society drama, wear & tear
✗ Rent negotiations every year (always downward)
✗ Vacancy periods eating into returns
The Commercial Shift:
Instead of buying another flat, I invested ₹35L in a 400 sq.ft commercial shop in a busy market area.
✅ Higher rental yields — 6-8% vs. 2-3% in residential
✅ Long-term leases — 3-9 year lock-ins (businesses need stability)
✅ Rent escalation built-in — 10% hike every 3 years (contractual)
✅ Tenant maintains property — No repair headaches
✅ Business tenants = reliable — Rent is their business expense, rarely delayed
My Commercial Property Journey:
→ 2019: Bought 400 sq.ft shop for ₹35L (bank loan ₹20L)
→ Tenant: Small accounting firm (9-year lease)
→ Monthly rent: ₹20,000 (₹2.4L/year)
→ Yield: 6.8% (nearly 3x residential)
→ EMI: ₹18K/month (rent covers 100%+ of EMI)
→ Effort: Zero — tenant handles everything
The Tax Advantage: → Commercial property loan interest fully deductible
→ Depreciation benefits reduce taxable rental income
→ Capital gains indexation on sale (long-term)
The Risks I Evaluated: ⚠️ Higher upfront cost
⚠️ Location-dependent (visibility = everything)
⚠️ Business closure risk (mitigated with prime location)
⚠️ Lower liquidity than residential
Today’s Reality (After 6 Years): → Loan almost paid off (₹4L remaining)
→ Property value appreciated to ₹48L
→ Passive income: ₹2.4L/year (growing to ₹2.6L after escalation)
→ Planning second commercial investment
Lessons Learned:
🔑 Commercial isn’t riskier — it’s different (do your homework)
🔑 Location > property size (footfall = rent potential)
🔑 Long leases = peace of mind + predictable cash flow
🔑 Diversify: Residential for living, commercial for earning
Residential gave me a home. Commercial gave me freedom.
Drop a 🏢 if you’ve considered commercial property investing.
Follow Sushant Sinha for honest insights on real estate, passive income & building wealth strategically.
hashtagCommercialRealEstate hashtagPassiveIncome hashtagRealEstateInvesting hashtagRentalIncome hashtagWealthBuilding hashtagPropertyInvestment hashtagFinancialFreedom hashtagSmartInvesting hashtagRealEstateTips hashtagInvestmentStrategy
