Residential property tends to perform better in the long term in my experience simply because the worldwide population is growing and demand for residential property is following. However, there are many different caveats such as the area, type of property, prospects for the region, local economy, etc.
My main concern with commercial property is that very often the property will be set up for a particular business and if that business suffers or moves then you may well have significant renovation costs. Also, with the amount of businesses going online today this means that commercial assets on the high street have significantly reduced in value of late.
Real estate market for both these categories is different. There are various factors which need to be considered when you are planning to invest in a residential or commercial project. I would suggest to do proper homework before making such a decision or hire a agent who can help to get the data for better decision making.
The problem today is that if you are looking at commercial premises, for example a shop, the Internet has made such an impact on online buying that the value of shops will have fallen in many parts of the world. There will obviously be the option to redevelop into flats, etc but this is not always as straightforward as you might think and there are obvious costs.
Higher returns and cash flow is arguably the biggest benefit of a commercial real estate investment over a residential one. Residential loans are typically paid off over 30 years while commercial loans are typically paid off over five to 20 years.
My approach would be to create a backbone of solid rental income - even if the potential capital growth was limited - which would allow you to pay off the mortgage much quicker. Then maybe use excess funds going forward to take a calculated risk on property where the focus is more on capital gains than rental income. You need a solid backbone and a solid income stream for long term success.
It all depends on your long term goals - personally I think in the current market, commerical property carries the higher risk in the UK. There is nowhere near enough private rental accommodation in the UK which has pushed rental yields higher.