Guide for Aurangabad Commercial Real Estate Investment
Aurangabad is a beautiful Tier II city located in the heartland of Maharashtra. The city is a major tourist destination with Ellora Caves, Bibi ka Maqbara and rock-cut Buddhist shrines. Moreover, it has always occupied an important position in trading, connecting the country’s northern and southern trading routes.
The Government of India has brought Aurangabad within the folds of its Smart Cities Mission, intending to improve city planning, the standard of living and infrastructural development. Aurangabad Industrial City is a smart city set up to cater to the city’s industrial needs. It spans an area of 10,000 acres.
The city is a major cotton and silk textile production centre. Many domestic and international companies have also established offices in Aurangabad. Let us explore the vital details related to commercial real estate investments in Aurangabad.
Top Reasons to Invest In Aurangabad Real Estate
Here are the top reasons to invest in commercial properties in Aurangabad:
Rapid Economic Development
Aurangabad is developing rapidly, especially after the city got included in the Smart Cities Mission. It is one of the largest cities in India and a central educational, cultural and industrial hub of Maharashtra. As a result, commercial real estate investments here have lucrative prospects.
Emerging IT and Manufacturing Industry
This Maharashtrian city is gradually becoming a significant location for IT and manufacturing industries. For example, Videocon, a prominent electronics company, has its manufacturing units in Aurangabad.
New Job Opportunities
Well-established textile businesses, manufacturing and IT companies have created more employment opportunities for the youth. As a result, more and more people are migrating to Aurangabad from neighbouring cities and states.
Investments by Retail and Entertainment Brands
Established retail and entertainment brands are increasingly investing in Tier II cities like Aurangabad to tap into the purchasing capacity of their residents. Lower land rates, a good transport network and better warehousing spaces are the main reasons behind their increasing presence here.
Commercial Real Estate Investment Opportunities in Aurangabad
You can consider investing in the following commercial spaces in Aurangabad:
Waluj is a major industrial area in Aurangabad. Many prominent companies such as Bajaj Auto, Coca-Cola, Siemens and Baxter have their business units in Waluj. The price of commercial properties is approximately ₹2,151 per square foot.
It is another major industrial area in Aurangabad where commercial real estate is a lucrative investment. You can consider investing in ready-to-move office spaces here. Prices start from ₹9,687 per square foot for office spaces here.
Investing in commercial lands in Shendra will offer attractive returns as it is a major industrial area located 8 kms from Aurangabad airport. Volkswagen, Skoda Auto and Audi India are some major industrial units in Aurangabad. Prices start from ₹1,053 per square foot.
Things to Consider before Buying a Commercial Property in Aurangabad
Listed below are the essential things you should take into account when purchasing commercial properties in Aurangabad:
Authenticity through RERA
Every developer in India must register their properties with the Real Estate Regulatory Authority (RERA). When you decide to purchase commercial properties in Aurangabad, check the authenticity of the builder and the property by logging into the official RERA portal of Maharashtra.
Assess the credibility and authenticity of the builder minutely. For example, check how many projects the builder has completed successfully . It is essential if you have decided to invest in a property still under construction. Another essential feature you need to assess is whether the builder has any criminal cases registered against them .
Good infrastructure plays a vital role in the economic growth of a region. Make sure the location of commercial space is well-connected to other parts of the city. Moreover, easy access to basic amenities like water and electricity boosts business growth and improves the lives of the residents.
A legal contract called a lease defines the relationship between a property owner and an investor for a specific period. You can consult legal or real experts to understand the structure of a lease document and avoid signing on to any unacceptable conditions.
Stamp Duty in Aurangabad
If you wish to invest in commercial properties in Aurangabad, you need to be mindful of the stamp duty rates:
|Owner||Stamp Duty Rate|
|Joint Property Holder (Male + Male)||6%|
|Joint Property Holder (Female + Male)||6%|
|Joint Property Holder (Female + Female)||6%|
Registration Charges in Aurangabad
Knowing the registration charges is essential if you wish to invest in commercial real estate in Aurangabad:
|Male||1% (Up to ₹30,000)|
|Female||1% (Up to ₹30,000)|
|Joint Property Holder (Male + Male)||1% (Up to ₹30,000)|
|Joint Property Holder (Female + Male)||1% (Up to ₹30,000)|
|Joint Property Holder (Female + Female)||1% (Up to ₹30,000)|
Aurangabad Commercial Real Estate Sector Outlook
Commercial real estate investment has a bright future in Aurangabad because this is an industrially developed Tier II city located in the advanced state of Maharashtra. With more and more businesses moving to Tier II cities for effective cost management, more and more jobs are getting created.
Over time, Aurangabad will see more established businesses opening up manufacturing units. It would lead to more job opportunities attracting more people from all over India. With flourishing tourism, industrial, manufacturing and educational sectors, Aurangabad seems set to experience economic growth for years to come.
Commercial Real Estate vs Other Asset Classes
Let us compare the returns generated by commercial real estate with that of other asset classes:
Commercial Real Estate vs Gold
Returns from commercial real estate investments in an upcoming Tier II city like Aurangabad have brighter prospects than gold investments. However, the latter seems to have more safety and security. An added advantage of gold is that it can be liquidated easily, unlike real estate.
Commercial Real Estate vs Stocks and Equity Mutual Funds
If we compare these two asset classes on a basic level, we see that stocks and equity mutual funds have the potential to generate higher returns than commercial real estate. But they are susceptible to market fluctuations, making it challenging for investors to have a clear idea about their potential returns. The commercial real estate sector is relatively less volatile.
Commercial Real Estate vs Bonds
Both real estate and bonds are stable sources of passive income. But, compared to bonds (AAA-rated), commercial real estate is subject to higher credit risk. Moreover, real estate investments have lower liquidity as it takes time to find a suitable buyer.
Commercial Real Estate vs Residential Real Estate
A crucial benefit of commercial real estate investments is that it is associated with higher rental prospects. Moreover, commercial real estate demand is always higher than residential properties, which also makes their prices higher.
Illustrated below is a tabular comparison of the different asset classes:
|Parameters||Residential Real Estate||Stocks & Equity Mutual Funds||Gold||Commercial Real Estate||Bonds|
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Steps to Invest in Commercial Real Estate in Aurangabad
Here’s a step-by-step guide to investing in commercial properties in Aurangabad:
Step 1: Decide on your investment amount and conduct market research about suitable sites that have the potential for growth.
Step 2: Shortlist the sites aligned with your budget and conduct a field visit to evaluate the ground situation. To better understand a site’s profitability and prospects, you can take the help of a real estate expert.
Step 3: Select the commercial property most suited to your requirements and investment goals.
Step 4: Complete the stamp duty and registration formalities to transfer the ownership of a property in your favour. Minutely check the property assessment extract, title deed and foundation certificate of the space you have invested in.
Step 5: Pay the requisite fees to the real estate consultants or experts if you have availed their services.
Step 6: You can consider purchasing an appropriate insurance policy as a layer of financial protection for your investment.
Aurangabad is a major Tier II city in Maharashtra with a flourishing tourism and textile industry. In addition, the Government of India has categorised Aurangabad as a smart city, contributing to brighter prospects for commercial real estate investors.
Frequently Asked Questions (FAQs)
Is Najafgarh a good area?
Najafgarh is a prime locality in Delhi that is well connected with the other parts of the city through Najafgarh-Gurugram Road.
Is Najafgarh a rural or an urban area?
Najafgarh is mostly an urbanised village. Here, around 89.5% of the total population lives in urban areas, whereas 10.5% live in rural areas.
Is Najafgarh a good place for commercial investment?
It is a good option when it comes to real estate investment due to its developing connectivity and infrastructure. In addition, it is well connected to other parts of Delhi through the blue line metro and national highways.
What are the best places to buy a property in Najafgarh?
The best places to buy a property in Najafgarh are the Dwarka Sector 13, 17, 18 and 18A, including the Dwarka Mor.