Pune’s real estate market has evolved a lot over the past few years and has always been a lucrative destination for investors and buyers.
While the city’s real estate sector saw a massive collapse in terms of revenue due to the pandemic, Pune proved to be a resilient market that rebounded by showing rapid recovery.
Moreover, Pune has always been one of the most popular places for real estate investment. It is mostly because Pune has properties that are economical, unlike Mumbai where even small spaces have a hefty price tag on them. While residential real estate has been in troubled waters for the past few years, the commercial segment has been on an upward trajectory.
One question that dwells in every investor’s mind is; which real estate investment is better, residential or commercial?
The answer to this question totally depends on your goal, how much money you are willing to invest, and the RoI (Return On Investment) that you want.
Residential properties are probably bought as investments with which one can generate income by renting it out. Another factor that attracts investors is the price appreciation of residential properties over a course of time. In contrast to large commercial properties, the maintenance cost of residential properties is much lower. This proves to be an important factor as for commercial properties the maintenance can consume a significant portion of rental income earned from the investment.
Meanwhile, commercial property investment yields a higher rental return than residential property but involves greater risk and greater maintenance cost too. The RoI for commercial properties can be as high as 8 percent.
As people seek out great locations for their businesses, commercial property should be your option only if it is situated in a good location. Furthermore, commercial real estate appreciates faster than residential properties; but the dampening factor can be high maintenance cost which can range from Rs.7 to 12 per sq. ft. /month depending on the property type.
As a result, most leases or rental agreements for a commercial property for the long term leave very little room for frequent tenant change or rent negotiations. This makes commercial properties a more consistent source of income than residential properties.
Conclusively, investing in the residential real estate segment is recommended if the budget is low, maintenance capacity is poor, and frequent tenant changes are not an issue. The commercial real estate investment though will yield substantially faster and better returns as compared to residential real estate.
Before investing that hard-earned money into any property, the investors must take into account factors like budget, amenities, connectivity, security, and the presence of markets.
Best Investment Options in Goel GangaGroup (Ongoing & Upcoming Projects)
1) Ganga Asmi – 2 & 3 BHK Luxury Homes @ Wakad, Pune
2) Ganga Altus – 2 & 3 BHK RightToComfort Apartments @ Kharadi, Pune
3) Ganga Dham Towers – 5.5, 4.5 & 3.5 Ultra Luxuries Apartments @ Market Yard, Pune
4) Glocal Square – Retail Mall & WTC Offices at Sitabuldi, Nagpur
5) East Point - Commercial & Retail Spaces at Kurla East, Mumbai
6) Boat Club – 3 & 4.5 BHK Premium Residences @ Boat Club Road, Pune
