Maxworth Realty Reviews – Benefits of investing in commercial real estate over residential real estate
                     Maxworth Realty Reviews – Benefits of investing in 
commercial real estate over residential real estate
Last year, when COVID-19 gripped the nation leading to a 
lockdown, uncertainty in equity markets and low debt market 
returns turned many investors to other investment options, 
and surprisingly the Indian real estate sector took 5 Billion 
USD did not attract. Institutional investments in 2020, 
equivalent to 93 percent of transactions recorded a year 
earlier. 
Maxworth Realty Reviews that we Indians have always had a 
soft spot for two investments – gold and real estate. And when 
it comes to property, residential real estate remains a hot 
topic because of its homeownership sentiment. But as of late, 
many investors are finally seeing the potential of commercial 
properties and the many benefits that come with them.
It is important to realize that even though there are thousands of 
residential properties with attractive offers, as an investment they do 
not offer as high returns as commercial properties and carry their own 
risks.
So, let’s look at some of the reasons why investing in commercial 
property instead of residential real estate can be a wise decision.
Higher returns
Commercial property gives good rental returns in the long 
run. Since the residential market is yet to pick up 
momentum post the pandemic, it will take some time for the 
prices to appreciate. Whereas, in commercial real estate, 
Grade-A office properties are already giving high returns due 
to their high demand. Estimated returns from residential 
properties are around 3-4%; Whereas, from commercial 
properties, it is around 8-10%.
Budget 2021 has also relaxed debt financing norms for Real 
Estate Investment Trusts (REITs), and this could pave the way 
for institutional funding in commercial real estate properties 
and help investors earn higher returns.
Growing demand
work from home will not be the new normal in India. Due to large 
family sizes, tiny homes, inconsistent internet speeds and weak 
digital platforms, most people are choosing to go back to the office.
In addition, the emergence of new businesses registered year after 
year is driving the growing demand for commercial properties. 
According to the Central Registration Center, about 16,000 new 
companies have been registered since the lockdown. Apart from 
start-ups, MNCs are looking at India as a hub for data center offices 
and are looking for larger commercial spaces, especially in Tier 1 
cities.
“Bengaluru has retained its premier position as the city registering 
the highest office leasing volume in the country. The city recorded 
office leasing of 7.54 million sqft which accounted for 34 percent of 
the overall volumes across the eight markets in India.”
Steady cash flow
The lease term of commercial properties ranges anywhere 
between 2 years to 10 years. There are many advantages to 
having such a long lease period. Firstly, you will always have 
a steady cash flow due to regular rentals. Second, you won’t 
have to worry about looking for tenants every few months.
On the other hand, residential properties suffer from 
uncertain cash flows due to short lease periods. In most 
cases, the lease is for 11 months only.
Easier maintenance and upkeep
Whereas residential properties invest a lot of money to offer 
attractive lifestyle amenities such as swimming pools, children’s 
play areas etc.
commercial properties focus on facilities that can enhance 
work capabilities and lead to a healthy and positive functioning 
at work. environment can be created. Therefore, due to less 
number of larger-than-life features as compared to residential 
properties, the cost of maintenance is lower in commercial 
properties.
Furthermore, unlike residential real estate where the owner is 
always responsible for the maintenance of the property, in 
commercial real estate it is the tenant who bears the 
maintenance burden.
Another advantage of Maxworth Realty India Reviews is the 
triple-net lease. It is a form of lease agreement where the 
tenant is responsible for any ongoing expenses of the building 
such as maintenance cost, taxes, insurance etc.
At the end of the day, real estate remains one of the 
strongest and most promising investment options, and with 
the pandemic slowly coming under control, the market is 
bouncing back in most of the metro cities.
Maxworth Realty India Reviews was conceived in a 600 sq. 
ft office, humble beginning at best. Leveraging on the 
growth of the IT sector, we soon became a family of over 500 
employees, spanning across multiple offices, and is now 
considered as one of Karnataka’s largest developers, with 
more than 18 live projects. Maxworth Realty Reviews have 
now reached cities like Hubli, Hassan, Shimoga, Mysore, 
Bijapur, and Ooty which are soon to be “Smart Cities” and 
revered holiday destinations.