Differences between commercial and residential real estate

At the moment, investors are actively interested in investing free funds in real estate. It is possible to invest money in two segments – in residential or commercial real estate.
How does the process of investing in different segments of the real estate market.

Of course, there are many differences in the investment of free money in commercial and residential real estate.


  1. Cost.
    If for the purchase of residential square meters you need a couple of millions, then for the purchase of commercial real estate you will need the amount three times higher.

  2. Profit.
    Renting a residential apartment can bring the investor from 4 to 6% per annum. Based on these data, you can make the payback period of the object – approximately 18 years. If we compare the apartment with non-residential premises of street retail format, which are located on the red lines of houses, then the income will be 12% per year and a payback rock of 7 years.

  3. Rental rates
    As with the cost of objects, you can see a significant difference between rental rates of housing. For example the delivery of one-room apartment 40 sq.m. It will be approximately from 15000 rub, if you take commercial real estate from 20 sq.m. Rent can be from 50,000 rubles.

  4. Additional costs
    If you rent an empty apartment, you will not be able to overcharge the rent above 8000r. To take it at least 15000 you have to do a good redecoration and equip it with furniture and appliances. This will result in a decent amount. Commercial real estate rent is absolutely empty. All furniture and appliances are brought by the tenant to conduct their business.

  5. Tenants.
    Also a significant difference between real estate segments. Since commercial real estate is intended for business, potential tenants of such premises are legal entities and individual entrepreneurs. Residential real estate rent different age categories of citizens to stay. Due to such different tenants, there are different requirements for obligations under lease agreements. In contracts with legal entities, transactions are much safer than with individuals.

    If you want your rental business – prepare your requirements for the room and feel free to call the company GrandInvest. Our experts will find you a room with a reliable tenant and a long-term lease agreement for all your wishes!