BUSINESS-ECONOMY
Amid the volatility in the stock market, mutual funds, and cryptocurrencies, investors are on the lookout to invest their money in something more stable in terms of profit-churning. In this hunt, something which has emerged as a promising but stable investment is commercial real estate (CRE), which refers to the property used for business-related purposes or for workspace. Generally, tenants lease out commercial real estate for conducting income-generating activities. There are two ways in which investments are made in commercial real estate. One is direct investment, in which the investor gets ownership of the physical property. Also Read: Money-Wise | Real estate vs stocks: Which investment has more promising returns for you? Investment in commercial real estate best suits people who either have good knowledge of the industry or the capacity to employ firms for doing that. This is a high-risk but high-reward real estate investment. Investors can also indirectly invest in the commercial real estate market by investing in ownership of securities like exchange-traded funds (ETFs) or real estate investment trusts (REITs), which invest in commercial property-related stocks. The investors can also invest in companies catering to the commercial real estate market, such as realtors and banks. The investment in commercial real estate is indeed stable, but is it profitable enough? Here's what experts suggest. Also Read: Money-Wise: Investing beyond borders? These 5 countries are best real estate investment destinations However, one should always remember that there are some disadvantages involved in every kind of investment. Investing in commercial real estate has its own drawbacks, like heavy investment, fewer tax incentives, costlier loans, and maintenance woes. Prisha is a digital journalist at WION. With almost 10 years of experience in international journalism, she majorly covers political and trending stories. She also f None
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