#Commercial vs residential — where should you invest?

Both asset classes have their place. Here is how they stack up in Kenya today.

#Yields

• Commercial (offices/retail): 8–11% gross
• Residential apartments: 5–8% gross
• Airbnb / short-lets: 10–18% (higher risk)

#Vacancy risk

Commercial vacancies last longer (3–9 months) but tenants sign 5-year leases. Residential turns over faster but re-lets within weeks.

#Management overhead

Commercial tenants handle most repairs themselves. Residential landlords face constant calls.

#Verdict

If you have KSh 25M+, mix both. If you have less, start with a residential apartment in a proven location, then graduate to commercial.