Daybreak Owning a home makes you feel rich. Owning an office could actually make you rich
16 snips
Mar 9, 2026 The conversation compares why Indians favor homes over commercial property and why that might be holding back returns. It explains how REITs, SM REITs and AIFs let small investors access office, retail and warehouse income. The discussion covers higher rental yields, longer leases and the specific risks that come with commercial real estate.
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Households Overweight Residential Real Estate
- Indians allocate over half their household wealth to real estate rather than financial assets.
- That allocation is heavily skewed to residential property, leaving commercial real estate underrepresented despite potential benefits.
Access Offices Via REITs Instead Of Buying Floors
- Use REITs to access commercial real estate without buying whole properties.
- Listed REITs democratized access since 2019 and provided steady cash flows and attractive yields in recent years.
Commercial Property Delivers Higher Yield And Stability
- Commercial properties typically deliver higher rental yields of 6-9% versus 2-3% for residential in India.
- Leases are longer with 5-10% annual escalations, so rental income cushions returns during price downcycles.