Which is better real estate investment in Gurgaon, residential or commercial?

As a real estate consultant in the region, I have faced this query from my clientele. It can often perplex you, as it did when my childhood friend Simon grilled me the other day during his visit to my residence at DLF Phase IV. This puzzle kept me confused and my chubby friend was puzzled. Well, it’s a mix of various factors that determine which property is better. In a prime residential location, say DLF I or II, the scope of a luxury residential unit is better than a commercial one. On the other hand, in the best commercial location in the city, residential premises are less attractive. This is a locality wise parameter. There are also other deciding factors to consider while selecting property units in Gurgaon.

While considering whether residential or commercial is a better real estate investment in Gurgaon, the time factor should also be considered. For example, during the recent recession and resulting slump in Gurgaon’s property market, commercial properties in the city were on a downward trend. Furthermore, luxury apartments and villas were also in less demand during the period. But mid- and low-end residential units didn’t show much fluctuation in price. Likewise, it is estimated that in the coming years there will be a greater demand for mid-level residential units. This is due to the better salary scale in the government sector and the growing corporate sector in the region. Also, non-resident Indians who have been working in the Middle East are returning in large numbers due to the fallout from the recession.

Therefore, the analysis of whether residential or commercial property in Gurgaon is the best investment would reveal that both commercial and residential properties are good investment options in the region. It is a matter of time and locality that determines which is better in a particular place and time. In addition, the city is in a great phase of expansion and new areas have been acquired and are under development. In new locations, the prospective investor must make smart assessments as to where landmark developments would take place and invest accordingly. For example, if there is provision for a public transport terminal or any point where a regular public gathering is expected, investment in suitable commercial units will be ideal. Similarly, in the suburban sector, investment in the residential sector for villas and clubhouses would be more viable than investment in commercial projects.