Apartment in Gurgaon

Serviced and commercially held apartments sit within the commercial category because they are bought for income rather than for occupation.

A different asset from a residential flat

The unit may look residential but the economics are commercial. Returns come from short stay or serviced occupancy, which means an operator, an occupancy rate and a revenue share rather than a fixed rent. The operator's competence is as significant to the return as the location of the asset.

What to examine in the agreement

Establish who the operator is, what the revenue share or assured return terms are, how long the arrangement runs and what happens at the end of it. Assured return structures in particular should be read carefully, because the value of the assurance depends entirely on the covenant behind it.

Frequently asked questions

What is a commercial apartment?

A residential format unit held for income through serviced or short stay occupancy rather than for owner occupation.

How does the return work?

Usually through an operator arrangement with a revenue share or an assured return. The terms and the operator's track record both matter.

Are assured return schemes safe?

The assurance is only as good as the party behind it. Read the agreement and assess the covenant before relying on the figure.