RICH Property Solutions, Ahmedabad
What is commercial real estate?
Updated
Commercial real estate is property used for business: offices, shops, showrooms, warehouses and similar space. Owners earn from the rent a business tenant pays and from the property's value over time.
Commercial real estate at a glance
- Used for
- BusinessOffices, shops, showrooms and warehouses
- Owner earns from
- Rent and valueThe tenant pays rent, and the property can rise in value
- Agreed through
- A leaseUsually with a lock-in period and a yearly rent increase
- Regulated by
- RERA for projectsCheck a project on the Gujarat RERA website
What are the types of commercial real estate?
- Office space. A single office, a floor or a business park unit.
- Retail. Shops, showrooms and units in a mall.
- Industrial. Warehouses, godowns and factory space.
- Hospitality. Hotels and serviced stays.
- Mixed-use. A building that combines shops, offices or homes.
RICH Property Solutions works with offices, shops and showrooms. See commercial property leasing in Ahmedabad and our commercial property broker page.
How does commercial real estate earn money?
An owner earns in two ways. The first is rent: the business that uses the space pays it every month under a lease. The second is the value of the property, which can rise over the years.
Rent is usually judged as a yield: the rent for a year divided by the price. For example, a property bought for ₹1 crore that earns ₹6 lakh a year has a yield of 6%. The figure only shows the sum. It is no market rate.
Our guide on rental yield on pre-leased property shows how the number is read and what moves it.
How is commercial different from residential property?
- Who uses it. Residential: a family or an individual. Commercial: a business.
- The lease. Residential leases are usually shorter and simpler. Commercial leases usually run longer, with a lock-in and a yearly increase.
- Rent returns. Residential rent is usually a lower share of the price. Commercial rent is usually higher and is judged as a yield.
- GST on rent. Rent on a home is generally exempt. Commercial rent is charged at 18% where the landlord is registered.
GST on rent follows published guidance and depends on the landlord's registration. Your chartered accountant can confirm how it applies.
What are the ways to own commercial property?
- Buy a ready property with a tenant. This is pre-leased property. Rent starts on day one. Read what pre-leased property means.
- Buy a property and find a tenant yourself. See our guide on finding a tenant for commercial property.
- Buy in a new project. You pay in stages and the rent starts after possession.
What should you check before you buy commercial property?
- The tenant and the lease. Who the tenant is, the lock-in period, the yearly increase and the security deposit.
- The title and the registration. A clear title, and RERA registration for a project.
- The location. Footfall, access, parking and the other businesses nearby.
- The running cost. Maintenance, property tax and the stamp duty and registration at purchase.
- The exit. How easily you can sell or re-let the space later.
Every registered project is listed on the Gujarat RERA website.
Where to go next
Get the full cost of a project
Tell us the project or the area and budget. We send you the price, the extra charges and the registration cost together, so you see the whole figure before a site visit.
Questions people ask
What is commercial real estate?
Commercial real estate is property used for business instead of living: offices, shops, showrooms, warehouses and similar space. Owners earn from the rent the business tenant pays, and from any rise in the value of the property over time.
Is a shop commercial real estate?
Yes. A shop, a showroom and an office are all commercial property. So are warehouses and factory space, which fall under industrial property.
What are the main types of commercial real estate?
Office space, retail (shops, showrooms and malls), industrial (warehouses and factories), hospitality (hotels) and mixed-use buildings that combine two or more of these.
Does RERA cover commercial property?
Yes. The RERA Act covers commercial real estate projects as well as residential ones. You can look up a registered project on the Gujarat RERA website.
Is GST charged on commercial rent?
Published GST guidance puts commercial rent at 18% where the landlord is registered for GST. Whether it applies to your lease depends on the landlord's turnover and registration, and your chartered accountant can confirm it.
How is the rental yield of a commercial property worked out?
Divide the rent for a year by the price of the property. A property bought for ₹1 crore that earns ₹6 lakh a year in rent has a yield of 6%. The number is an example only, not a market figure.
General information checked 14 November 2026. It is not legal, tax or investment advice. Rules and rates change, so confirm them with your lawyer or chartered accountant.
This page is general information. It is not legal, tax or investment advice. We read the documents with you, and your own lawyer and chartered accountant go through them too.
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