Investment on commercial properties remains the best options in major cities which have good infrastructure. In top cities commercial investment is better option.
Commercial property is good for investment, only if it is supported by good infrastructure. Connectivity too plays vital role. Close proximity to the international airports remains key-factor. All these factors make commercial investment in tier I cities more profitable.
As the major cities offer comparatively better infrastructure and appreciable connectivity, business in these cities is boosted well. However this is not the case of tier II cities. In such smaller cities the best option of investment would be residential properties.
Though there is commercial activity in these small cities too, the activity is not as large as that of bigger cities. There is a disparity between the commercial space demands as well.
The growth of any city depends on the connectivity and infrastructure. When these factors get better, the commercial activity also gets better. However the growth of the city will be slower if the development is slow.
Another important aspect of commercial investment is rental appreciation. Top cities normally have better rental appreciations and so there will be more profit for the rental appreciation in these areas. On the other hand if you are investing in a commercial property at a tier II cities, the rentals will not be so high. You may not enjoy better value appreciation as well.
Property prices are surging in big cities. This also will improve the chances to gain better returns from the investment.
There is not a good demand for resale residential properties in top cities. On the other hand, there is better demand for resale commercial properties. Modern trend in property sale is that the residential properties with better amenities fetch good value appreciation.
As the resale properties are deprived of good modern amenities, they are not demanded much. However due to the lack of commercial space in the top cities like Mumbai, Delhi or Bangalore, there is a higher demand for commercial properties. In short, commercial investment is better in top cities.