Guide for Ujjain Commercial Real Estate Investment

Ujjain, originally known as Avantika, is one of the holy cities for Hindu pilgrimage. This is one of the 4 Indian cities swarmed by lakhs of people who visit the famous Kumbh Mela. Ujjain is the fifth largest city in Madhya Pradesh, with a population of 5, 15,215 people per the 2011 census.

Ujjain has several popular temples and places of worship for Hindus, Jains and Buddhists. Throughout the year, several Hindus come to Ujjain to offer their prayers and visit the holy banks of the Shipra River.

In addition to being a holy city, Ujjain is a popular industrial hub as it is close to commercial cities like Indore. Agriculture and other related industries are also major sources of income for Ujjain. Wheat and soya bean are the primary crops produced in this city. 

Besides cultivation, Ujjain also has cotton mills and one of the early cotton industries in India. Hence, commercial real estate opportunities are vast in Ujjain, and you should read ahead to learn more reasons to invest in this city.

Top Reasons to Invest in Ujjain Real Estate

You should invest in commercial real estate in Ujjain for the reasons below.

• Smart City

Ujjain is among the selected 100 cities under the Government of India’s Smart Cities Mission. The state government aims to develop several infrastructure facilities like sewage systems, transportation, e-governance, etc. As part of this development, this city also aims to grow its industrial sector, which will be profitable for the commercial real estate industry.

• Educational Hub

There are more than 15 educational institutions in Ujjain, including 6 Engineering colleges. It is a profitable spot for commercial real estate investment as there are several students in this city, which creates a demand for rental spaces and other commercial real estate properties.

• Industrial Hub

This city is close to the city of Indore, and thus it is a prominent location for industries to set up shop. A majority of land area of Ujjain is available for setting up industries, and hence the Government is encouraging businesses and big companies to expand their operations in the city. There are already several industries in Ujjain, mostly situated in mostly 3 industrial areas; “Dewas Road Industrial Area”, “Maxi Road Industrial Area” and “Tajpur Industrial Area”.

• Pilgrimage City

Ujjain is one of the important destinations for Hindu devotees, so there is a heavy annual footfall of pilgrims. This is a good factor for commercial real estate as it increases the demand for the real estate sector.

Commercial Real Estate Investment Opportunities in Ujjain   

While buying a property in Ujjain, you can choose either of the areas listed below to get good returns from commercial real estate investment.

• Rishi Nagar

Rishi Nagar is a popular locality in Ujjain and is well connected to other localities in this city. The nearest railway station, Ujjain Junction, is just 1.6 km away, and this locality is also reachable via NH-552. Thus, you can invest in a commercial property in this locality. You can buy a property in this locality by investing between ₹10 lakh to ₹9 crore. 

• Freeganj

This is an educational hub in Ujjain with multiple coaching institutes for engineering and medical entrances. Freeganj is also one of the most developed and expensive localities in Ujjain. It also has seamless connectivity to Ujjain Junction and Vikram Nagar railway station. Thus, it is a good option for commercial real estate investment. This locality has properties ranging from ₹10 lakh to ₹5 crore.

Things to Consider Before Buying a Commercial Property in Ujjain

Before investing in a commercial property in Ujjain, you should consider the factors listed below.

• Connectivity

While investing in a commercial property, you should check if it is in a well-connected locality. Access to public transportation and a good road network to and from your location are important factors for development of commercial real estate. 

• Property Builder

Reputation of your property’s builder is also a significant factor for commercial real estate investment. If an established developer builds your property, its demand and quality will always be high by default. Thus, always purchase a property from a reputed builder.

• Infrastructure

Your selected property should have quick access to basic facilities like hospitals, police stations, etc. In addition, your property should have access to modern amenities and other such facilities. This will increase the demand for your real estate asset.

• Location

Commercial properties should be located at prime locations which have high demand. Commercial hubs should be an ideal choice for your investment other than areas with good potential for rental yield. This will increase the amount of passive income from your commercial real estate investments.

• RERA Verification

The Real Estate Regulatory Authority (RERA) is a government body in every state formed under Real Estate Regulatory Authority Act 2016 to monitor and regulate all real estate activities. 

The RERA mandates all real estate participants to register and regularly update the data about their properties. Thus, you should regularly check and verify all details provided to you about a property in Ujjain from the official website of RERA Madhya Pradesh.

Stamp Duty in Ujjain, Madhya Pradesh

Stamp duty rates applicable on commercial property investment in Ujjain are given below.

Registration Charges in Ujjain, Madhya Pradesh

Registration charges for real estate investment in Ujjain are given below.

Ujjain Commercial Real Estate Sector: What’s the Forecast?

Ujjain is a city of devotees and has the utmost religious importance. Irrespective of market trends, the inflow of people will always be high in this city, and hence the demand for commercial spaces will rise further in the future. 

In addition, this city is rapidly growing its industrial sector, which will promote the growth of the commercial sector. Central Government has allotted 1200 acres of land to develop industries in this city which will boost its economy and standard of living exceptionally.

Commercial Real Estate vs Other Asset Classes

Refer to the comparison between commercial real estate and other asset classes before investing in a commercial property in Ujjain.

• Commercial Real Estate vs Stocks & Mutual Funds

Stocks and mutual funds offer high returns to investors but at high risk. These returns from these assets are influenced by market behaviour. On the other hand, commercial real estate provides moderately high returns at moderate risks. However, the investment period is generally longer than stocks, and the ticket size is also higher.

• Commercial Real Estate vs Gold

Gold investments offer moderate returns to investors in the long run. These returns are generated through appreciation value of the asset over a specific time period. However, commercial real estate offers you moderate returns at moderate risks compared to gold. In addition, commercial real estate allows you to earn passive income every month. 

• Commercial Real Estate vs Bonds

Bonds are market instruments that offer moderate but fixed returns at moderate risks. In comparison to bonds, commercial real estate offers higher returns at moderate risks. However, an initial investment in commercial properties is much higher than bonds. Moreover, bonds are highly liquid investment options. 

If you wish to invest in low-risk bonds and get stable returns of 9-11%, register on our platform today. Invest in top-rated bonds available in the market at no additional costs or hidden charges. 

Commercial Real Estate vs Residential Real estate

Residential real estate offers moderate returns at moderate risks to investors. Commercial real estate provides moderately higher returns in comparison and has higher demands than residential property. However, residential real estate is considered safer than commercial real estate.

The table below illustrates a point-to-point comparison of the above assets based on returns, liquidity, risk, volatility and ticket price.

Steps to Invest in Commercial Real Estate in Ujjain

To invest in a commercial real estate property in Ujjain, you need to follow the steps given below: 

Step 1: Prepare a budget for your property investment.

Step 2: Conduct market research and learn about recent trends.

Step 3: Appoint a good broker who can assist you in buying the best commercial property.

Step 4: Shortlist a few properties based on your budget.

Step 5: Visit all the properties in person and check all the amenities available.

Step 6: Finalise one property as per your requirements.

Step 7: Check all the details about your property from official the state’s RERA website.

Step 8: Submit all required documents and complete the official formalities.

Step 9: Complete the payment process. Make sure to pay the requisite stamp duty and registration charges. 

Step 10: Consider purchasing an insurance plan for your newly purchased commercial property.

Final Word

Commercial real estate investment is a profitable asset that can offer you good returns if planned well. As Ujjain is a city with high commercial potential and footfall around the year, buying a commercial property in this city can be a good idea for you. However, you should be aware of the factors mentioned above which will improve your chances of gaining returns significantly.

Frequently Asked Questions