Guide for Amritsar Commercial Real Estate Investment
Amritsar is the second largest city of Punjab and is a major cultural, transportation and economic centre of this state. It is gradually emerging as a commercial real estate hub due to its fast-growing economy and infrastructure. Being the home to world famous ‘Golden Temple,’ the city is rich in history and culture.
The renovation of Sri Guru Ram Das Jee international airport is ensuring more NRI traffic, which has led to increased activity. Additionally, DLF has planned to set up a project of 1,000 acre Special Economic Zone (SEZ).
Moreover, it is also a famous tourist spot, which ensures strong connectivity throughout the city. At present, luxury hotel giants like Taj and Tivoli Gardens have acquired land in Amritsar for construction.
It is well-connected by important roads, highways, railways and airways. The state government has approved the Amritsar-Kolkata Industrial Corridor (AKIC) project, which will boost the commercial sector of the state.
Let us know more about how all of these factors have created an impact on the commercial real estate of Amritsar!
Top Reasons to Invest in Commercial Real Estate in Amritsar
The top reasons to invest in the commercial real estate of Amritsar are as follows:
- Easier tenant handling
In the commercial property sector of Amritsar, the tenants are normally retail chains, banks, or corporate houses. Thus, it is normally easier to deal with such businesses that belong to professional sectors and they will not make you chase them for rental fees.
- Great Location
Being a famous tourist destination, Amritsar is very well-connected through roads and railways to many important places. Thus, investing in a commercial area in this place is an ideal choice.
Investment Opportunities in Commercial Real Estate in Amritsar
The locations in Amritsar that offer the best opportunities in terms of commercial real estate investment:
- Pratap Nagar
The locality of Pratap Nagar in Amritsar has well-connected and maintained roads, providing access to many important places across the cities. Moreover, it also offers standard amenities like marketplaces, malls, hospitals and transportation within walking distance.
- Bypass Road
The commercial property rates of this locality of Amritsar are much low than many other commercial locations. Moreover, it connects the area to many important highways and, thus, provides good accessibility.
Things to Keep in Mind Before Investing in a Commercial Property in Amritsar
The main things to keep in mind before buying a commercial real estate property in Amritsar are as follows:
- RERA Verification
The Real Estate Regulatory Authority (RERA) is a statutory body promoting transparency and reliability in India’s real estate industry. It was notified by the RERA Act of 2016. You can check the authenticity of the builder and their property by visiting the RERA website of Punjab.
- Lease Structure
A lease is a contract between a commercial space owner and occupier to identify any risk involvement. It must be comprehended on your part while assessing and analysing any investment.
- Proper Market Research
Investing in commercial real estate involves huge risks and thus needs a substantial amount of market research. Moreover, proper knowledge of the market will save you from getting involved in fraudulent activities.
Stamp Duty Rates in Amritsar
The stamp duty rates for commercial property in Amritsar, Punjab, are in the following table:
|Stamp Duty Rates
|Joint (Male + Female)
|Joint (Male + Male)
|Joint (Female + Female)
Note: Women are offered a reduction in stamp duty charges in the state of Punjab to encourage more of them in this investment sector.
Registration Charges in Amritsar, Punjab
The registration charges applicable in Amritsar, Punjab, are as follows:
|Joint (Male + Female)
|Joint (Male + Male)
|Joint (Female + Female)
It is essential to consider the rates of stamp duty and registration as they will be a part of your investment amount.
Commercial Real Estate Sector of Amritsar: What’s the Forecast?
According to recent developments, Amritsar will be facing a major increase in demand for commercial real estate properties in the near future.
The Circular Road will undergo redevelopment as a ‘Smart Road’ to provide organised parking, a smart streetscape, pedestrian-friendly pathways, and many more. With this improvement in connectivity, the state government of Amritsar will be approving ₹100 crores to boost development in cities. Moreover, the Municipal Corporation (MC) property tax wing has collected ₹50 lakhs from 1550 taxpayers of this city this year for the development of various projects.
Commercial Real Estate vs Other Asset Classes
The comparison between commercial real estate and other asset classes has been conducted on the basis of the following:
- Commercial Real Estate vs Gold
Gold offers better liquidity as it can easily be converted to money, which is impossible with real estate. However, commercial real estate investment offers greater returns in the long run.
- Commercial Real Estate vs Stocks and Mutual Funds
Stock market and mutual funds provide comparatively higher returns but witness great fluctuation with higher risks. Moreover, commercial real estate offers assured returns with direct asset ownership when compared to stocks and mutual funds.
- Commercial Real Estate vs Residential Real estate
Residential real estate properties have higher rental prospects than commercial real estate properties. However, it lacks demand in comparison to commercial real estate, especially in the premium category.
- Commercial Real Estate vs Bonds
Commercial real estate investments are less liquid than bonds due to their higher transaction costs and the long time it takes to find suitable property buyers. Moreover, bonds have a low credit risk in comparison to commercial real estate.
A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:
|Commercial Real Estate
|Stocks & Mutual Funds
|Residential Real Estate
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Steps to Invest in Commercial Real Estate in Amritsar
The steps to invest in commercial real estate in Amritsar are as follows:
Step 1: Do proper market research on the emerging potential sites.
Step 2: Calculate the ideal amount of investment after estimating your budget.
Step 3: Shortlist a few affordable sites. You can also take the help of a real estate broker to get the best deals.
Step 4: Consider visiting each site and examine them minutely in terms of connectivity, infrastructure, etc.
Step 5: Finalise a commercial property that suits your requirements and prepare all the legal documents like a property assessment extract, a title deed, foundation certificate, etc.
Step 6: Complete the payment to purchase the property. Make sure to complete the registration and stamp duty formalities as well.
Step 7: Consider purchasing an insurance policy for your property.
Considering the rapid growth and development of Amritsar, its commercial real estate sector is seeing positive changes in terms of property value, connectivity and infrastructure. The employment rate in this city is also increasing due to this gradual growth. Moreover, due to low property value, the demand for commercial real estate in Amritsar is also increasing day by day.
Frequently Asked Questions
Which are the best localities in Amritsar?
The best localities to invest in real estate in Amritsar are Bypass Road, Pratap Nagar, Ranjit Avenue, Meera Kot, Mahal and many more.
What is the price of land in Amritsar?
The price of land for real estate investment in Amritsar is approximately ₹3600 per square foot. However, this can vary between a range of ₹1000 and ₹4000 per square foot, depending on the location.
Should I invest in commercial or residential real estate in Amritsar?
Investing in both commercial and residential real estate property in Amritsar is ideal due to its great connectivity, infrastructure and developing economy.
Is Amritsar a good place to live?
Known to be a holy land, Amritsar has a very calm and peaceful atmosphere making it a very good place to live. Moreover, this city serves great amenities like well-connected roads, developing infrastructure and many more, which makes it a good location for both residential and commercial purposes.