Commercial property refers to real estate used mainly for business purposes, such as offices, shops, warehouses, and factories, while residential property is designed for people to live in, like houses, apartments, or townhouses. The main difference lies in their use: commercial spaces generate income through rent or business activity, whereas residential spaces provide living arrangements. Commercial properties often involve longer leases, higher rental returns, and different legal rules compared to residential ones. On the other hand, residential property is usually easier for individuals to finance and manage. Understanding these differences helps investors choose the right type of property for their goals.