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Conygar Investment Company PLC

Which is more attractive: Rental income from residential or commercial property?

People often don’t recognise the difference between residential and commercial properties, while making an investment and therefore, tend to focus on just one type. The leasing businesses in the residential and commercial segments, have completely different dynamics, points out Kirti Timmanagoudar, partner, BrickEagle. “Rental housing evolved as a concept in India, to cater to the acute housing shortage of affordable homes. The operating expenses of rental housing properties are minimal, as the tenant only requires basic, yet functional infrastructure,” says Timmanagoudar.

“On the other hand, commercial property investments for example offices and malls typically entail high investment and come with leasing and vacancy risks. Moreover, there’s a direct impact of the economy and real estate market cycles on this segment. This is unlike housing, which is uncorrelated with markets, as it is end-user driven and there exists a huge shortage,” she elaborates.

Conygar Investment Company PLC (LON:CIC) is an AIM quoted property investment and development group dealing primarily in UK property. The group aims to invest in property assets where we can add significant value using our property management, development and transaction structuring skills.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.