When it comes to investments, the decision to invest is driven by the returns the investment would generate. Safety is also one of the important aspects taken into consideration while investing.

Of all the available asset classes for Investment, real estate has been viewed as the safest asset class and the one generating decent returns over a longer time frame.

Within Real state, an Investor has an option to investing either in Residential Real Estate or Commercial real estate.

For investment in a Residential property one may not be required to spend more compared to a commercial real estate property, however the rental yields are much better in commercial.

Commercial Real Estate offers rental yield of around 13% to 15% compared to 8% to 9% percent offered by residential real estate.

Another point to remember is that commercial properties can be leased for a longer duration as compared to residential properties.

Further, one can easily avail a housing loan to invest in Residential Real Estate.

However, loan for buying a commercial real estate is not available under housing loan and hence no income tax benefit can be availed for payments of principal and interest.

Moreover, the size of the residential property is not as important as the size of a commercial property. What is important is to make it commercially viable.

Keeping in mind the above factors would help in making an informed and correct Investment decision.