Residential property
- Entry cost is usually lower, especially for smaller plots, and there are more potential buyers when you resell.
- A plot earns nothing until you sell or build, so the return depends on how the area develops and how the market moves.
- A built house can be lived in or rented out, but rent depends on location and condition.
Commercial property
- A shop or office can earn rent or house your own business, but its value depends heavily on location, footfall and frontage.
- Entry cost is typically higher, and the pool of buyers is smaller, so resale can take longer.
- An empty unit earns nothing and still has costs, so the project's delivery and surrounding demand matter a lot.
Questions that decide it
- What is the purpose: to live in, to run a business, to earn rent, or to resell?
- How long can you hold, and how soon might you need the cash back?
- How much can you commit now, and what do the instalments require month by month?
- How much risk can you accept if the property is slow to sell or let?
Many investors hold both: a residential plot as a more liquid, lower-cost holding and a commercial unit for income. Whatever you choose, spread the decision over written figures, not promises.
Be wary of guarantees
Nobody can guarantee rental income, price growth or a buy-back. If someone does, ask for it in a signed agreement, and have your lawyer read it before you pay.
This article is general information, not legal, tax or financial advice. Prices, rules and fees change, so confirm current figures with the developer and have a lawyer review your documents before you pay.