Guide for Bareilly Commercial Real Estate Investment
Bareilly is one of the largest metropolitan cities of Uttar Pradesh. It lies within easy reach of major cities like Lucknow and New Delhi. It is one of the fastest-growing cities in India, with a lot of potential to attract businesses and industries.
The Uttar Pradesh State Industrial Development Authority (UPSIDA) plans to extend the industrial corridor in Bareilly and several other cities of Uttar Pradesh. This would invite more residents into this city.
Furthermore, the Rail Land Development Authority (RLDA) has announced the residential development of 62,780 square km of land in Bareilly. This will no doubt boost the commercial real estate sector as well.
Read along to learn about the perks of investing in commercial real estate in Bareilly.
Top Reasons to Invest in Bareilly Real Estate
Here are some important reasons for you to invest in commercial properties in Bareilly.
- Location and Transportation
Bareilly lies near the National Highway- 30, which connects it to Sitarganj in Uttarakhand and Vijayawada in Andhra Pradesh. In addition, one can access other UP cities like Lucknow, Raipur, Jabalpur and Allahabad from Bareilly via NH 9.
This proves that Bareilly offers excellent transport facilities to and from this city. This plays a significant role in attracting businesses and industries to Bareilly.
- Industrial Growth
Bareilly hosts several large and small-scale factories. The National Brewery Company and the Western Indian Match Company are some prominent industries in this city.
This city also holds several agro-based industries like cane and bamboo furniture. Moreover, companies like Hindustan Unilever Limited utilise the fertile lands of this to cultivate rice. Bareilly is also famous for textiles with intricate embroidery, including styles like Zari Zardozi, Cutdana Moti and Karchobi.
Commercial Real Estate Investment Opportunities in Bareilly
Here are some locations for commercial real estate in Bareilly that might interest you:
- Civil Lines
This is a commercial area located in the central part of Bareilly. This place hosts numerous shops and marketplaces to cater to the residents and tourists. You can reach Civil Lines via Bilpur Railway Station and Bareilly Railway Station.
You can find many investment opportunities in showrooms, shop spaces and commercial plots in Civil Lines. Investing in these places offers high chances of substantial gains with commercial real estate. Property prices here range from ₹2.7 lakh to ₹14 crore.
Known initially as Bijauria, this part of Bareilly hosts several tourist spots and commercial spaces. You can travel to Nawabganj by train through the Bijauria Railway Station.
As an investor, you can invest in office spaces or small motels and resorts in Nawabganj due to their high demand here. Property prices in Nawabganj start from ₹30 lakh approximately.
Things to Consider before Investing in a Commercial Property in Bareilly
Here are some specific points you need to consider before investing in commercial real estate in Bareilly.
- Lease Structure
A lease is a legal document that binds you, the property owner and a tenant under a contract for a stipulated time. Consider seeking assistance from legal advisors to comprehend the lease structure fully. This will help you get insights into the risks involved in the business.
If you are investing in an under-construction building, consider researching on builder’s portfolio. To do so, you need to analyse their past projects and the successful ones. You can also contact past investors and people involved with the builder’s projects to cross-verify information.
- RERA Authentication
The Real Estate Regularity Authority Act 2016 looks after transparency in the real estate industry with Real Estate Regularity Authority (RERA) body.
Every broker or builder in Bareilly must register their properties on the official UP RERA website. You can verify your shortlisted properties’ authenticity by visiting here.
Stamp Duty in Bareilly
The stamp duty charges in Bareilly for commercial properties are as follows:
|Male + Female||6.5%|
|Female + Female||6%|
Registration Fees in Bareilly
The table given below displays the registration charges applicable for commercial properties in Bareilly.
|Male + Female||1%|
|Female + Female||1%|
Bareilly Commercial Real Estate Sector- What’s the Forecast?
According to UPSIDA, private companies have altogether invested ₹11,000 crore from 2020-2022 for setting up industrial plants in tier-2 and tier-3 cities in Uttar Pradesh. Bareilly is one of these cities. Therefore, UPSIDA (UP State Industrial Development Authority) has plans to set up an industrial corridor here to cater to this demand.
Furthermore, the Central Government has also proposed to set up an International Airport in Bareilly, Gorakhpur and Ghaziabad. This will help boost the city’s economy and improve transportation worldwide.
These factors will bring the small-scale and local handicraft and agro-based industries to the limelight. With an increase in business opportunities, the commercial real estate sector in Bareilly is likely to flourish for years.
Commercial Real Estate vs Other Asset Classes
The list given below highlights the differences between commercial properties and other asset classes:
Commercial Real Estate vs Stocks and Mutual Funds
Stock markets have volatile nature; as a result, an investor can earn high returns or incur huge losses. Therefore, you should adequately understand the basics of stocks and mutual funds before investing. However, commercial real estates are less risky and provide stable income.
Commercial Real Estate vs Bonds
Both bonds and commercial real estate are excellent sources of passive income. Bonds are more secure and carry higher liquidity than commercial properties. However, you can earn more ROI from commercial real estate investments than bonds.
Are you planning to invest in bonds to earn stable returns at low risks? Check out our home page for the top-rated bonds trending in the market.
Commercial Real Estate vs Residential Real Estate
Commercial real estate is more expensive than residential real estate, so you can earn higher returns from them. However, finding suitable tenants for commercial properties is tougher.
Commercial Real Estate vs Gold
Buying and selling gold is much easier than commercial properties. As a result, gold has a more liquid market than commercial real estate. However, you can earn higher returns from commercial real estate than gold.
The following is a comparison of commercial real estate along with the above asset classes:
|Parameters||Commercial Real Estate||Stocks and Mutual Funds||Gold||Residential Real estate||Bonds|
Steps to Invest in Commercial Real Estate in Bareilly
Here are some basic steps you need to follow to invest in commercial real estate in Bareilly:
Step 1: Decide on a budget based on your financial situation.
Step 2: Shortlist a few locations and conduct on-site research to analyse them.
Step 3: Visit these locations for a thorough understanding of your benefits. Also, seek help from real estate consultants to know about the development prospects of the locality.
Step 4: Finalise and purchase a location after checking its RERA authenticity.
Step 5: Pay all necessary charges like stamp duty and registration charges to transfer the property under your name. Also, consider paying the service charges to brokers or real estate consultants (if any).
Step 6: Finally, get your newly-obtained property insured.
As a growing industrial area, Bareilly offers endless opportunities to earn substantial ROI from commercial properties. However, you should not make a life-changing decision to buy a property in haste. Take your time to do proper research on the locality, price trends, risks, buyer-seller behaviours and other details. Also, don’t forget to properly assess the structural details and property papers.
Frequently Asked Questions
What are the risks of investing in commercial properties?
Investing in commercial properties can lead to high credit risk. Furthermore, they are costly, and investors do not enjoy any tax benefits.
What documents will I receive on purchasing commercial properties?
Property Mother Deed, Sale Deed, Encumbrance Certificates, Conversion Order, and Building Plan are important documents you should receive after purchasing commercial real estate in India.
What are the locations in Bareilly where I can invest in commercial real estate?
Civil Lines, Faridpur, Mahanagar, Nawabganj and Subhash Nagar are some prime locations in Bareilly to invest in commercial real estate.
Why do I need to check RERA before buying a property?
RERA guidelines are applicable for both commercial and residential properties. These guidelines help to protect the monetary interests of buyers and investors alike. It ensures there is no arbitrary exploitation of money in the real estate business. In addition, RERA helps to prevent property fraud and project delays.