Is investing in residential real estate a bad idea?
It's never a bad idea to invest in Real Estate but it is crucial to do your research about the location and the current market scenario before any investment decision. Also, commercial real estate gives higher Returns on Investment (ROI). After purchase of the property, you have control over the type of commercial activity (retail, restaurant or office) carried out on the property as well.
I would suggest commercial real estate over residential for investment purposes. There are many property sites which give you great options for investments.
If you are looking for investment options in Mumbai, there is a lot of unsold inventory in the residential market. And since the setback that the industry faced after demonetisation, GST, RERA, many property prices have remained stagnant, if not depreciated. Whereas, the commercial real estate sector saw correction but is picking up in 2018 - 2019 in the number of people looking for properties to rent.
What you should stay clear of is the regions with inflated prices like south mumbai or bandra west, as it takes much longer to recover from the cost of purchase and also a long time to make a profit. Also, since the rent is very high, tenants start a retail/restaurant business but run out of business in less than a year and have to shut down or move to a place with lesser rent. As a property owner, your place will be up on the market again while you lose money on the months it goes vacant along with brokerage charges and the hassle of finding a new tenant. This goes for residential as well.