HNIs, NRIs are moving to commercial realty, as residential properties’ ROI falls

Regular retail properties can generate similar or even higher yields, depending on location, the report said.

The average ticket-size for commercial space investment starts from as low as Rs 10 lakh in tier-2 cities and it can beyond Rs 10 crore in tier 1 cities. Lower-ticket investors can focus on office spaces as small as 1,000 sq. ft and still turn a decent profit.

However, despite commercial property investment's undoubted lucrative upside, they have riskier sides too, it said. When compared to housing, the ticket sizes are a lot higher as is the risk of loss in ill-chosen plays, said Anuj Puri, Chairman of ANAROCK Property Consultants.

For both office and retail properties, location--both at the city and micro market levels -- is critical. Cities such as Bengaluru and Mumbai are among the most lucrative for commercial investments, he said.

Hyderabad and Pune also have high potential because of relatively lower capital values and high demand, Puri added.