Both types of properties return good investments, although each have their own pros and cons, so there is no correct answer to which investment property is better. While commercial properties tend to offer higher profits between 5% and 12%, compared to residential properties, which returns a 3-4% profit. But commercial properties are riskier and more vulnerable to external influences.
Generally, financial advisers recommend if you are new to property investment, buy a residential property first. Then for more experienced investors with multiple established investment properties, it may be a good idea to take the next step into the commercial market.