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Invest in Commercial Real Estate to Get High Rental Yield

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Invest in India's commercial real estate to get high rental yield

Commercial Real Estate has always been the top choice for investors in India because of its high rental yield. The sector is expected to grow at a CAGR of 13% between 2022-2027. 

Moreover, the Indian real estate sector is expected to reach $1 billion by the year 2030, and commercial real estate will be a major contributor to its growth. What makes commercial property investment the best investment choice is that it gives high ROI, high rental yields, great capital appreciation, and rewarding passive income opportunities. 

For commercial real estate investment, the rental yield is anywhere between 5% to 12%, whereas, for residential real estate investment, the rental yield is only between 2% to 4%. The difference between the capital appreciation of commercial properties and residential properties is also significantly high. Depending on the right locations of the properties, CRE’s capital appreciation is far better than RRE’s.  

Along with those, commercial real estate is popular for being immune to inflation, making it a source of major wealth creation for investors in recent times. It also generated a source of regular income through existing tenants, making it a preferred and popular source of passive income for investors and buyers.  

In commercial properties, the tenants are long-term, with the lease term being anywhere from 5 years to 15 years. For that reason, commercial real estate is a safe investment with a higher rental yield and regular income for the long term.  

Currently, India’s real estate sector has had the title of being a prime investment sector due to its tangible assets. Until recently, the sector was dominated by residential real estate investments. However, with the blowing up of the commercial real estate investment sector in India, along with the slow growth in the housing market, commercial real estate investors are presented with great opportunities to explore the realty investment avenue.   

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