The classic dilemma: Buy a luxury apartment or a high-street retail shop? In 2024, the data clearly favors one for cash flow and the other for stability.
1. Rental Yield Comparison
Rental yield is the annual rent earned as a percentage of the property value.
| Asset Class | Avg. Rental Yield (NCR) | Risk Profile |
|---|---|---|
| Residential | 2% - 3.5% | Low (Always in demand) |
| Commercial (Office/Retail) | 6% - 9% | Medium (Economy dependent) |
2. The SCO (Shop-cum-Office) Phenomenon
In Gurugram, SCO plots have outperformed traditional malls. Since you own the land and the building, you have more control. Capital appreciation in SCO sectors (like Sector 114, 88) has hit 15-20% annually post-pandemic.
3. Lease Terms
Commercial: Leases are long (9-15 years) with a lock-in period of 3 years, ensuring stable cash flow.
Residential: Standard 11-month leases mean frequent tenant turnover and maintenance costs.
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