The real estate companies in Lahore deal with two kinds of properties. These are commercial and residential real estate properties. Residential real estate involves housing property like land for building. These include homes, apartments, villas, or condos. In contrast, commercial properties involve land for businesses. These include properties for restaurants, cafes, private offices, and hotels.
Both of these properties are offered by many real estate companies in Lahore. Both properties can generate revenue depending on their usage. Commercial real estate vs residential real estate has its importance, challenges, and benefits.
In this article, we will learn about commercial vs residential real estate investing. We will also discuss what features make them distinctive. Also, the difference between commercial and residential real estate agents.
What is Commercial Real Estate vs. Residential Real Estate?
Commercial Real Estate
Commercial real estate properties in Lahore refer to land that is bought for doing business. They generate revenue from various types of businesses running on these properties. Including shopping malls, banks, retail shops, restaurants, and private offices. The main purpose of these properties is to provide a source of income to the owners and in return provide any service to the consumers. Commercial real estate properties also include big warehouses, grocery marts, and healthcare facilities. The main objective of commercial real estate properties is to conduct business. It also helps consumers take services that are required in that area.
Residential Real Estate
On the other side, residential real estate properties in Lahore involve projects or properties for living. Residential properties are more prone to living and housing. It comprises families and individuals who make their abode. The residential real estate marvels are designed and constructed to deliver comfort. It also offers the well-being of its inhabitants. These places are specifically designed to offer shelter, security, and luxury if demanded. Residential properties include homes, villas, condos, etc.
Difference Between Commercial and Residential Real Estates Properties
Commercial and residential real estate properties have many distinctive features. Let’s explore these features together.
1. Primary Purpose
- The primary purpose of residential real estate properties is to serve living. As it provides houses, apartments, villas, and condos. These properties are built for families and single individuals. Depending upon the size of the family either a nuclear family or big joint family. Residential properties provide accommodation, shelter, and security. It mainly serves as a need not a business to generate revenue or investment.
- On the contrary commercial properties are solely designed and constructed for business purposes. These properties provide land for business opportunities like investment. It also provides services to the consumers, which in return generates profit. People buy commercial properties for private offices, banks, restaurants, or warehouses.
The primary purpose of both properties is different. As residential is marked for accommodation. On the other hand, the commercial is entitled to business purposes and investment.
2. Opportunities
- For opportunities, both types have different preferences. For residential, it is mainly living and accommodation. It also serves as an investment opportunity for selling in the future or renting.
- On the other hand commercial property is solely based on business purposes. It deals with the client, running a firm, or establishing an office or workplace. Commercial properties also include retail shops and e-commerce businesses. It also includes shopping malls, groceries mart, and other business-oriented opportunities. These properties can also be further sold or rented for investment.
Opportunities for residential properties provide basic accommodation for living or renting. Commercial for businesses offering services and commerce.
3. Capital Required
- Residential properties are smaller in size and offer low capital. The approximate estimate to buy a house is 10 million in any suitable area. That house will offer security, posh living, and necessary amenities.
- For commercial property the capital demand is high. It requires more money to buy a piece of land which is not as big as compared to residential property. Conclusively, you need more money to buy commercial properties.
For capital requirements residential and commercial both depend on location.
4. Laws and Regulations
- For residential, laws and regulations, requirements are not strict. Consumers can buy land by following basic laws, policies, and regulations. These are implemented by the local government or federal depending on the type of laws.
- Contrarily, commercial properties are bought for running the businesses. They require more strict laws and regulations with more extensive paperwork and documentation. Laws and regulation are one of the important parameters for both.
For residential properties it is lenient and for commercial it is more strict. Consumers are directly involved with the business offering services e.g., healthcare services.
5. Pool of Consumers
- Residential property demand has increased immensely. This is mainly due to an increase in population in recent years. Many families or single buyers want to buy residential land for living or investment. Therefore the pool of consumers to buy residential properties is large. We can say people buy more residential land as compared to commercial properties and it is easy to sell or buy a house.
- The demand for commercial landings is low as fewer people buy land that is purely opted for commercial business purposes. This also involves less consumer pool.
For residential, it is typically more as it is used for living, and for commercial, it is less. It also depends on market trends. Majorly retail shops, shopping malls, and restaurants depend on the economy of the people living in that area.
6. Maintenance Cost
- The maintenance cost of residential property is less. As a shorter area is available for maintenance. People’s primary purpose is living, not generating goods. From heavy machinery for doing business that uses high energy resources. The energy consumption of various types like electricity, gas, and water consumption is less.
- On the other side commercial properties energy consumption is high. 24/7 operations are active in offices that entertain international clients. Also, the use of electricity to run these operations is high with other resources. Big industries consume high levels of energy resources. Especially those that offer manufacturing services like automotive and textile.
They utilize more resources for their everyday activities. Therefore construction, remodeling, and maintenance of commercial properties is much higher. Additionally, excluding tax, commercial property owners also pay a lot of security for water, electricity, and gas costs. Commercial-level consumption of these resources is usually high.
The cost of maintenance differs for both categories. For residential it is low-housing projects that cost less maintenance. For commercial projects, it is high e.g. warehouses typically require huge maintenance.
7. Lease Time
The lease time for commercial properties is longer than that for residential properties. Because businesses cannot change their location more often. In Pakistan, the people do not lease out residential property. Most of the time they look for a house on sale or a house for rent. Concerning the timing of the lease it differs as well.
For residential it is low and for commercial it is high.
8. Structure and Design
- The structure and design of residential property cost less as compared to commercial. Unlike commercial properties, a home is built for the sole purpose of living. It provides a comfortable life with peace and security. It is entirely made with a different design and architectural sense.
- Whereas commercial properties are made on business objectives. Restaurants will be made to accommodate a large number of people. With extensive kitchen space, sitting area, and parking areas. Similarly, a warehouse will offer different structural styles based on the stored goods.
9. Returns
- For selling commercial properties give high value. Same for re-sale or return. Commercial real estate properties are designed in a way with a prime location. It also includes other appealing factors that provide more value to the original cost.
- On the other hand, residential also provides a good resale value but not as much as commercial land provides.
For Commercial & Residential Real Estate; Contact Pine Enclave
Pine Enclave is a prestigious residential and commercial housing society in Lahore. It is a real estate property project by Q-Links. It offers various sizes of plots for both categories. Either build the home of your dreams or start a business from scratch. The land is secure with 24/7 surveillance providing a gated community. It is also located in the heart of Lahore. Just a few minute’s drive from famous places like Shaukat Khanum, Ring Road, and Pine Avenue.
The property holds prime value and it is the best option for investment and reselling. The luxurious amenities offered by Pine Enclave are countless. Some of them are lush green landscapes and wide roads. Ample parking spaces are available with commercial plots. Shopping malls, nearby masjids, and easy payment plans are also included. With 3-step payment plans starting with a down payment at booking. Followed by 3 balloon payments (after every 6 months). Pine Enclave promises a better life for peaceful living and business. It is an investment for both its consumers.
You can contact us today and let our expert representative guide you. Choose the best land for your business or home-buying requirements.