Commercial Real Estate Investment in Aligarh
Aligarh is one of the major towns in Uttar Pradesh. It lies north of Lucknow and hosts some of the state’s eminent educational institutes. Hence, it is also known as the Mecca of Education.
Agricultural food processing and manufacturing pose a significant contribution to Aligarh’s economy, with 82% of the population dependent on it. Other notable industries include lock manufacturing, brass hardware, aluminium and zinc casting, cotton processing, etc. As the lock manufacturing business is more prominent here, Aligarh is also known as Tala Nagari.
Aligarh has seen several improvements, including construction of malls, buildings, and apartments. To add to the city’s industrial development, it will receive a multi-storeyed flatted factory housing numerous non-polluting Micro, Small and Medium Enterprises (MSMEs). The administration is planning to invest ₹90 crore for this project.
If considering investing in commercial real estate in Aligarh, read the following guide.
Top Reasons to Invest in Commercial Real Estate in Aligarh
Here are a few reasons for you to consider investing in commercial properties in Aligarh.
Besides being a prime educational hub of Uttar Pradesh, Aligarh hosts several industries. It includes food and beverage manufacturing and processing industries, which significantly contribute to this city’s economy.
In addition, it houses the Wave Distillery, which manufactures Kingfisher Beer and Heinz Sauce and Satha Sugar mill manufacturing units. Furthermore, there are also some famous diecasting industries like Indian Diecasting Industries.
Aligarh is also famous for its lock manufacturing industries. Several countries import locks manufactured in Aligarh.
Passive Source of Income
Investing in commercial properties here can bring you substantial returns as an industrial area. Moreover, investing in suitable properties can gain good ROI without facing the hassles of corporate jobs. Therefore, investing in commercial properties in Aligarh is an excellent passive source of income.
Investment Opportunities in Commercial Real Estate in Aligarh
Here are some locations for you to invest in commercial properties in Aligarh.
Tappal is a small locality in Aligarh that lies near the Yamuna Expressway. Jewar and Pawal are in Tappal’s vicinity. Its location near Yamuna Expressway attracts many investors to this area. You can invest in properties like plots and shop or retail store spaces to earn high returns in Tappal.
Property prices in Tappal range approximately from ₹5.5 lakh to 2.4 crore .
One of the busiest sites in Aligarh is Center Point. This area serves as a hub for residents and tourists interested in trade, business, and entertainment. Centre Point has a tonne of places to invest, including stores, offices, and hotels. Property prices in this locality vary from ₹1 lakh to ₹11 crore.
Things to Consider before Investing in a Commercial Property in Aligarh
Here are some points you must consider before investing in commercial real estate in Aligarh:
The infrastructure of your property has a pivotal role in attracting tenants. While purchasing a property, ensure it has functioning lifts, adequate parking space, clean restrooms and other necessary amenities.
The Real Estate (Regulation and Development) Act of 2016 formulates and maintains transparency in the real estate industry. The Act mandates the formation of a Real Estate Regulatory Authority (RERA) body to monitor transactions.
All brokers and builders in Aligarh must register their properties in the official RERA portal of the Uttar Pradesh Government – UP RERA. You can verify the authenticity of your shortlisted properties by visiting this portal.
Stamp Duty in Aligarh
The table below displays the stamp duty applicable to commercial properties in Aligarh:
|Joint (Male + Female)||6.5%|
|Joint (Female + Female)||6%|
|Joint (Male + Male)||7%|
Although female property owners get a concessional rate, the discount is applicable up to a limit of ₹10 lakh on the transaction’s total value.
Registration Charges in Aligarh
The following are the registration charges you have to pay for buying a commercial property in Aligarh:
|Joint (Male + Female)||1%|
|Joint (Female + Female)||1%|
|Joint (Male + Male)||1%|
Aligarh Commercial Real Estate Sector Outlook
Aligarh is the favourite spot for investors among the six cities allotted for the Defence Corridor Project in Uttar Pradesh.
Industrialists and investors are looking forward to setting up their industries in this city. Lands in Aligarh are already allotted to 19 companies who will invest a total sum of ₹1,245.75 crore.
The existing powerhouses and manufacturing industries offer investors ample opportunities to invest in commercial properties. Aligarh also shelters several manufacturers and exporters of bronze, iron, aluminium and brass industries. It allows investors to invest in properties like warehouses and small-scale factories.
Furthermore, the retail industry in Aligarh is thriving, with numerous shopping malls and multi-storied buildings under construction. This presents a great opportunity for renting out commercial space to sports and clothing brands.
Commercial Real Estate vs Other Asset Classes
The following are some notable differences between commercial real estate and other asset classes:
Commercial Real Estate vs Gold
Finding suitable tenants for commercial real estate is time-consuming. In contrast, selling and purchasing physical and digital gold is much easier. However, commercial real estate brings in higher returns than gold.
Commercial Real Estate vs Bonds
Like gold, buying and selling bonds is more accessible than commercial real estate. As a result, bonds also have a liquid market than the market of commercial properties.
Commercial Real estate vs Stocks and Equity Mutual Funds
Commercial real estate returns are more stable compared to stocks and equity mutual funds. As stock markets are volatile, investors may face massive losses in market downturns. However, commercial real estate offers a steady income stream.
Commercial Real Estate vs Residential Real Estate
Investing in commercial properties can earn higher returns than investing in residential properties. However, owing to the former’s rising prices, investors may have to bear some short-term losses.
The table given below compares the above asset classes based on their liquidity, volatility, risks and ticket size.
|Parameters||Commercial Real Estate||Stocks and Equity Mutual Funds||Gold||Residential Real estate||Bonds|
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Steps to Invest in Commercial Real Estate in Aligarh
Follow these steps to invest in commercial properties in Aligarh:
Step 1: Finalise your budget for purchasing a commercial property.
Step 2: Conduct sufficient research on locations and sites with high future potential.
Step 3: Shortlist a few sites that suit your budget.
Step 4: Conduct on-site research to analyse the ground situation closely.
Step 5: Purchase a property that aligns with your budget and investment goals.
Step 6: Check for official documents like Title Deed, Property Assessment Extract, Encumbrance Certificate, etc.
Step 7: Complete the stamp duty and registration formalities to transfer the property in your name.
Step 8: Pay the fees or commissions to brokers or real estate consultants if you have availed their services.
Commercial real estate also comes with a few risks, like every other investment. Therefore, you must keep your budget and risk appetite in mind while investing in commercial properties. Also, investors must adhere to the RERA guidelines while investing in commercial real estate in Aligarh. It will safeguard your finances from any fraudulent activities and exploitation.
Frequently Asked Questions (FAQs)
What are the major industries in Aligarh?
Zinc die casting, lock manufacturing, brass sculpture and hardware, power stations and food manufacturing industries are a few predominant industries of Aligarh.
Which locations can I choose to invest in commercial real estate in Aligarh?
Central Point, Tappal, Quarsi, Naurangabad, and Dodhpur are a few regions in Aligarh appropriate for commercial real estate investments.
Is there any airport in Aligarh?
No, there is no airport in the city of Aligarh. However, the closest airport is Indira Gandhi International Airport, New Delhi.
What is an encumbrance certificate?
An Encumbrance Certificate is a legal document that specifies that a property is free from any financial liabilities. This certificate ensures a person can buy that property without worrying about legal trouble.