How Commercial Real Estate Differs from Residential

There are different types of properties that we purchase when we are investing our money in the real estate business. Usually, people spend their money in the real estate industry when they are buying a home for themselves so that they may reside therein. However, there are some people that purchase a property to run a shop or a store. So, the preferences may differ depending on the type of property you are going to buy.

For example, if you are looking to buy a residential property, you’d take a look at some things like the school district, the style of the property and some other important elements. But when you are choosing a commercial property, your choices are completely different and you need to be very careful about the property. This doesn’t only put an impact on your choices but it also puts an impact on the value of the property. So, today we will take a look at the differences that are found in the commercial and residential properties.

Make sure that you carefully read this information before purchasing a property because it is going to provide you with the entire information that is needed for purchasing a property.

Expensive option

The commercial property is definitely more expensive when it comes to comparing it with the residential property. The reason why these properties are expensive is that you are going to use this property for running a business. And the locations where people usually run the business are very expensive. So, the seller is demanding the price according to the value of the property. For example, if you are willing to purchase a property in Tanjong Pagar Centre in Singapore, the expenses would be really high because it is a commercial area. On the other hand, the properties in the residential areas are available at affordable rates.

Value of the property

When you are purchasing a residential property, you are always willing to find a location where you can easily get access to the basic facilities of life. But when you are purchasing a commercial property, you are looking to find a valuable place where the customers can easily reach out to you. Thus, the value of the property is chosen based on your demand.


The property tax you are going to pay for the commercial property is higher than the taxes you are going to pay for the residential purpose. The main reason due to which higher taxes are charged is that the commercial properties are used to generate income. Therefore, the tax is also higher for those properties. If you start using a residential property for commercial purposes, it’s tax would also increase.

Related posts

Leave a Comment