The Great Exclusion: Why Real Estate Has Been Left Out of Wealth Management

Meet four friends who tested the ultimate question: residential, commercial, industrial, or agricultural—which property type delivers the best returns?

Four college friends reunited in Bangalore, each with ₹1 crore burning a hole in their pocket. The debate was intense: where should they invest?

Rahul championed residential properties. "Everyone needs homes," he argued. Priya believed in commercial real estate, pointing to Bangalore's IT boom. Amit was convinced about industrial properties and the e-commerce revolution. Sunita shocked everyone by choosing agricultural land. "It's the hidden gem," she declared.

They decided to put their theories to the test.

The Investments

Rahul bought a 3-bedroom apartment in Electronic City for ₹1 crore. Easy financing, smooth process, and within months, he had tenants paying ₹35,000 monthly (4.2% yield).

Priya invested ₹1.5 crores in a Koramangala office space. Despite complex financing, a startup signed a 5-year lease at ₹80,000 monthly (6.4% yield).

Amit acquired a warehouse in Hosur for ₹1.2 crores. An e-commerce company immediately locked in a 10-year lease at ₹1.2 lakhs monthly (12% yield).

Sunita bought 5 acres of farmland for ₹1 crore, all cash. Initial farming income was modest—just ₹2 lakhs annually (2% yield). Her friends teased her about the low returns.

Year One Reality Check

Rahul faced typical residential challenges—tenant turnover, vacancy periods, and maintenance costs. Still, his property appreciated 12%, delivering a total 15.1% return.

Priya enjoyed smooth sailing with professional tenants and long-term contracts. Her property value jumped to ₹1.8 crores, generating a stellar 19.4% return.

Amit hit the jackpot. E-commerce demand exploded, his tenant requested more space, and property values soared 25%. Total return: 21.6%.

Sunita smiled mysteriously as government announced a new IT corridor project. Her ₹20 lakh per acre land suddenly became worth ₹35 lakhs per acre. Total return: a whopping 38.4%.

The Lessons Learned

By year two, patterns emerged:

Rahul found his rhythm with residential properties—steady, predictable, and forgiving for beginners. "It's the safest way to learn real estate," he admitted.

Priya scaled up her commercial portfolio, attracted by professional relationships and stable long-term income streams.

Amit became the "warehouse king," reinvesting profits into more industrial properties as logistics demand continued exploding.

Sunita sold some land for ₹50 lakhs per acre and bought more in emerging areas, proving her strategic timing.

The Verdict

There was no single winner. Each property type served different goals:

Choose Residential if: You're new to real estate, want steady returns, need easy financing, or prefer hands-on management.

Choose Commercial if: You have larger capital, want professional tenants, seek higher yields, and understand business cycles.

Choose Industrial if: You want maximum rental yields, are comfortable with specialized markets, and believe in India's logistics growth.

Choose Agricultural if: You have patience for long-term gains, can identify growth corridors, and want portfolio diversification.

The Smart Strategy

The friends' biggest discovery? The best approach isn't choosing one property type—it's building a diversified portfolio across all four sectors.

Ready to write your own success story?

Contact Propellar Spaces today. Our AI-powered platform and expert guidance help you find the perfect properties across residential, commercial, industrial, and agricultural sectors, whether you're like Rahul, Priya, Amit, or Sunita.

At Propellar Spaces, every investor has a unique story. Let us help you write yours across all four property types.