Investing in Commercial Real Estate: Pros and cons, tax implications explained

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Commercial real estate is a desirable investment sector due to its reliable returns, increased rental value, and income. Let’s weigh the benefits and drawbacks of buying commercial real estate stated by Anurag Goel, Director, Goel Ganga Developments


 Average rental yield of commercial real estate 1-2%. The commercial property requires no furnishing. The renter is responsible for paying the furnishing costs after the property is rented. Commercial premises are leased for ten to twenty years. The owner of a business property can anticipate constant and regular returns.

Cons :

High investment and costlier loans: The amount at stake is higher in the case of commercial property, and Loans are more expensive.

Manage complex assets and extensive research: Retail investors lack specialized knowledge in managing commercial assets and can find it challenging to invest in commercial property due to a lack of resources and market understanding.

Tax implications: The income from renting out property is taxed under the heading “income from house property,” and there are only a limited number of permissible deductions

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