FAQFractional Real Estate Basics
What is the difference between commercial and residential property investment?
Quick answer
Commercial property (offices, retail, mixed-use) is leased to businesses and often generates higher and more stable rental yields with longer leases. Residential property is leased to individuals and can appreciate strongly but usually has shorter leases. Commercial investing typically targets steady rental income, while residential often emphasizes capital appreciation.
Commercial property
Offices, retail and mixed-use space are leased to businesses. Leases tend to be longer and more stable, and commercial units often generate higher rental yields than comparable residential ones.
Residential property
Homes are leased to individuals. Leases are usually shorter and tenants change more often, but well-located residential property can appreciate strongly, so residential investing often emphasises capital growth.
Which fits you
If your goal is steady, recurring income, commercial property usually leads. Its drawback has always been access: quality commercial units are expensive. Fractional ownership lets you own a share of one for a fraction of the whole-unit price.
