Baljeet Singh
Founder & CEO
Ask most investors what they want from real estate and they'll say 'appreciation.' Ask what they need, and the honest answer is usually cash flow, and that's where the residential-versus-commercial conversation gets interesting.
Residential assets in prime Gurugram micro-markets are currently yielding 2–3% net rental, with the bulk of returns coming from capital appreciation over a 5–7 year hold. It's a patient asset class, well suited to long-term wealth building and end-use.
Commercial assets, particularly pre-leased Grade-A office space and well-anchored retail, are running 6–9% net yields in the same corridors, with appreciation as the secondary driver rather than the primary one. The trade-off is ticket size, tenant-dependency, and a steeper learning curve for underwriting lease quality.
Our recommendation for most portfolios isn't either-or. We typically structure client allocations around a residential core for stability and end-use optionality, layered with select pre-leased commercial assets for yield, sized to the investor's liquidity horizon and risk appetite, not to whatever is trending.