Investing in real estate has always been considered one of the most reliable ways to preserve money, both in Kyrgyzstan and around the world. Looking back to a time when it was possible to buy an apartment in Bishkek for just $5,000–$10,000, it almost sounds like a fairy tale. Today, such an amount would barely cover the cost of a parking space in an underground garage. This clearly illustrates the growth in real estate prices, making it one of the most popular and reliable ways to preserve and grow capital.

Buying an apartment is the most common way to save money. First and foremost, people choose apartments because almost everyone encounters this type of investment at some point in their lives — it’s a familiar and straightforward option. Secondly, apartments are perceived as a reliable asset since there is always demand for them; such an asset can easily be sold or rented out. Lastly, apartments are often more affordable compared to other types of investments, making them an ideal first step into the world of investing for many.

After the first purchase, many are eager to repeat the process and buy again. With experience, they start selecting apartments in different areas of the city where prices grow faster, returns are higher and investments are more attractive and profitable. This success in deals often boosts confidence, helping people recognize the advantages of owning real estate. An apartment transforms from merely an asset into a tool for growing savings.

There are buyers who purchase several apartments in the same residential complex, and it's not uncommon for entire floors to be bought. However, as the number of properties grows, so does the number of challenges and complexities of managing such a portfolio. Renovations, finishing work, furnishing, appliances, utility payments and taxes — all of these become pressing concerns. And this is just a partial list of what property owners need to handle. If there are several properties, the number of issues multiplies accordingly, making it impossible for one person to manage everything alone.

When managing a large number of apartments or residential properties becomes a complex and costly task, it’s worth considering alternative investment options. One such option, which is often more profitable, is investing in commercial real estate.

Many Kyrgyz citizens are unfamiliar with and rarely consider such investments, even though they offer a more profitable alternative, provide a stable income and often require less time and effort to manage.

Put simply, commercial real estate refers to buildings and spaces used for business purposes. Unlike apartments, which are meant for living, these properties are designed for work and generating income. Just as there are different types of businesses, there are various types of spaces to meet their needs.

For example, commercial real estate can include not only offices but also stores, cafes, warehouses, workshops, kiosks, car washes, service stations and much more. This diversity in commercial properties makes it a more versatile investment tool compared to residential real estate.

This is not the only advantage; unlike residential properties, as an owner of commercial real estate, you do not need to carry out renovations or finishing work, furnish the space or refresh it every time a renter moves out. Typically, commercial renters customize the space to meet their business needs and carry out renovations according to their concepts. They also take great care to maintain the cleanliness and condition of the property, as this directly impacts their company’s image and customer perception. Moreover, in most cases, renters cover all ongoing expenses related to repairs, utility payments and services, significantly reducing the financial burden on the owner.

Another key difference between commercial and residential real estate is the lease term. Residential leases are often for one year, as renters seek mobility due to work, studies or personal circumstances. For the owner, this can create additional challenges — finding new renters, wear and tear on furniture and appliances, cosmetic repairs after a renter moves out, and often downtime due to renter turnover.

In commercial real estate, lease terms are typically much longer — often 3 to 5 years, and sometimes even longer. This is because businesses require stability for growth. For a business to function successfully, it needs time to establish recognition, attract a loyal customer base and improve sales. No one wants to lose these achievements, as relocating can result in significant expenses and losses. Therefore, even after the lease agreement expires, both parties often prefer to renew it.

Overall, when comparing commercial and residential real estate, each has its own features, advantages and challenges. Apartments are often chosen for the familiarity of this type of investment. However, they require more time and effort to manage, with frequent renter changes, the need to find new renters, ongoing repairs and handling household issues. In contrast, commercial real estate can offer a broader range of options, higher and more stable income, lower renovation and furnishing costs, long-term lease agreements, as well as more stable and predictable relationships with renters. At the same time, commercial properties require a greater understanding and analysis of market needs and prospects.