Guide for Bijapur Commercial Real Estate Investment

Bijapur is one of the most popular cities located in Karnataka, India. This heritage city was once known as Vijaypura. The climate of this city is healthy and generally dry. It has two types of soils. A deep black soil that is ideal for crops like wheat, pulses, jowar, etc, and a red soil that is good for horticulture. Therefore, this city is ideal for agro-based industries.

Bijapur is strategically connected through all the major cities in India by many national highways and state highways. National highway NH-50 connecting Solapur to Mangalore goes through Bijapur. Also, this city has national highway NH-218 which connects Hubli with Humnabad. The city is also a big road transport hub that comes under KKRTC (Kalyana Karnataka Road Transport Corporation).

Bijapur is a developing city and real estate experts are eyeing the city for investment for a long time. So, if you wish to invest in commercial real estate in Bijapur, here is a guide for you. 

Top Reasons to Invest in Bijapur Real Estate

Here are the top reasons to invest in Bijapur real estate.

• Location

Bijapur is an important city in Karnataka, India. It is only 521 km away from the state capital Bangalore and 349 km from another important city Pune in Maharashtra. The river Krishna flows about 125 miles within this city. 

Bhima is another river in Bijapur. These rivers overflow in the rainy season making the nearby areas extremely fertile. All these made this city ideal for agriculture and agro-based industries.

• Roadway Transport Facilities

Bijapur is well connected with India’s most major cities like Mangalore, Hyderabad, Ahmedabad, Mumbai, and Pune through national highways and state highways. Furthermore, the city has proper state bus services to Badami, Belgaum, Bidar, Hubli, Solapur, and many more important cities in Karnataka.

Also, a state bus transport division is present in Bijapur that comes under KKRTC (Kalyana Karnataka Road Transport Corporation). These bus services are connected to most major cities of India such as Mumbai, Pune, Bangalore, Hyderabad, Mysore, etc.

• Railway Transport Facilities

Bijapur is well connected with most major cities in India such as Mumbai, Ahmedabad, Hyderabad, etc. Bijapur railway station is located only 2 km from the main city. This station is connected by a broad-gauge railway. It is connected to Hotgi junction near Solapur railway station. Also, this station is connected with South Western Railway through Bagalkote and Gadag junction and to Central Railway through Kurduvadi Railway Station.

Government of Karnataka has planned to develop Bijapur and Gulbarga belts as a hub of cement and steel. This will be ideal for the direct railway line between Shahabad and Bijapur. This will help the commercial real estate industry in the city.

• Air Transport Facility

The airport which is near Bijapur is Gulbarga and it is only 152 km away. Bijapur is connected to the rest of India through this airport only. However, a new Bijapur Airport is currently under construction at a place 15 km from the city. The airport is a greenfield airport with a budget of ₹220 crore. 

Commercial Real Estate Investment Opportunities in Bijapur

As Bijapur is a developing city, it has many commercial plots available. Some of them are as follows: 

• Mahal Bagayat 

Mahalbagayat is one of the most prominent industrial areas in Bijapur. There are many different industries in this area, such as Madhukar Agro industries and Mahantesh industries. Investing in commercial real estate in this area will be beneficial for the investor. Prices of properties start from ₹2.25 crore. 

• Mallikarjun Nagar

Mallikaarjun Nagar is an important developing area in Bijapur. This area has multiple commercial lands available. The prices of the land here start from ₹1.58 lakh. 

• Signature City

One of the most industrial developing areas in Bijapur is Signature City. The Aliabad industrial area is located within this place. There are plenty of commercial lands available in this area where you can invest.

Things to Consider Before Investing in a Commercial Property in Bijapur

When you are investing in a commercial property there are certain factors that you should consider. These include: 

• Location

Carefully check the location before investing in commercial real estate. Choosing the best location depends on many factors, such as the type of business or who will be the clients.

In Bijapur, there are both agricultural lands and industrial areas available for commercial investment. Select the location thoughtfully to ensure high returns.

• Transportation

While investing in commercial real estate, checking if the area is well connected with the rest of the city or country is the second important thing. Selecting an area that is well-connected to roadways, railways, and aviation is necessary.

Moreover, Bijapur is well connected with the rest of the country by national and state highways, rivers ways and railroads. The aviation industry is also growing exponentially. Therefore, make sure to check the transport facility of the area you are investing.

• RERA Authentication

In 2016, the Government of India introduced the RERA Act to help real estate investors and property owners from fraud. While investing in commercial real estate in Bijapur, check if the property is listed under the RERA Act 2016. 

Please remember that every Indian state has its own RERA and builders are required to adhere to the regulation. 

Stamp Duty in Bijapur

Stamp duty is an integral part of a property transaction. Here are the applicable stamp duty rates in Bijapur: 

In addition to all these charges mentioned above, the state government of Karnataka also has a surcharge on stamp duty. The Government of Karnataka has imposed a cess of 10% and a surcharge of 2% above the stamp duty.

Registration Fees in Bijapur

The registration fees for commercial real estate in Bijapur are as follows:

Bijapur Commercial Real Estate Sector- What’s the Forecast?

At present, Bijapur in the state of Karnataka is undergoing many developments. Government of India has announced Amrit Bharat Station Scheme. As per this scheme, 1,275 stations will undergo a vital transformation to boost the railway and the passenger experience. These include Bijapur and its nearby stations like Bagalkot, Bidar, and Belagavi.

Furthermore, Bijapur airport is almost complete and as per the Karnataka state government, it will be open to the public this year.

Depending on all these factors, real estate market experts are eyeing this area for the past few years. Therefore, the commercial real estate market will flourish in the next few years.

Commercial Real Estate vs Other Asset Classes

There are different types of assets available for investors to invest in. Choosing the best one is not an easy job. Check the differences between commercial real estate and other asset classes to take a more informed decision: 

Commercial Real Estate vs Stocks and Mutual Funds

Commercial real estate is associated with lesser risk than stocks and mutual find. However, it generates moderate returns compared to stocks and mutual funds. Another important factor to consider is that commercial real estate is much less volatile than mutual funds and stocks which are subject to market movements. 

Commercial Real Estate vs Bonds

Both commercial real estate and bonds are good sources of passive income. While bonds are usually more secure than real estate they offer a lesser return. Compared to bonds, commercial real estate investments are much less liquid as searching for a suitable tenant takes up a lot of time. 

If you are thinking about investing in bonds, then you can go to our homepage to get an overall idea about investing in bonds.

Commercial Real Estate vs Residential Real Estate

A commercial real estate property offers way more return than a residential property, especially when it comes to rental income in the premium category. However, maintaining a commercial property is tough and more complicated than a residential one. In comparison, residential properties suffer from lesser demand. 

Commercial Real Estate vs Gold

For long-term investment real estate can be more beneficial than gold. It is much less volatile than real estate which makes it a safer investment option. Investing in gold can be for both short and long term. People generally invest in commercial real estate for the long term as property value increases over time. However, you can sell gold easily unlike real estate. 

Here’s a table to compare the different asset classes based on various parameters such as returns, liquidity, risk, volatility and ticket price: 

Steps to Invest in Commercial Real Estate in Bijapur

Investment in commercial real estate in Bijapur can be a great challenge if you do not follow some basic guidelines. Here are some basic steps you can follow while investing in commercial real estate in Bijapur: 

Step 1: Plan and finalise a budget before investing in commercial real estate.  It will help you to identify how much to spend and where. 

Step 2: After finalising a budget, choose a suitable location. Talk to industry experts and local real estate dealers to understand what type of location should you choose for the business plan you have in your mind.

Step 3: Make sure to understand what sort of profits you can get from your preferred location. If you are not sure about the location and business then you should seek help from the lawyers and the experts.

Step 4: Check if the property is RERA authenticated. RERA will help you from getting into any fraud.

Step 5: Make sure to clear all the stamp duty and registration charges. Convert the property to your name after paying all the necessary charges.

Step 6: After buying the property, make sure to avail a suitable insurance policy for an added layer of financial protection. 

Final Word

Bijapur is one of the major cities in Karnataka. Currently, the city is undergoing all sorts of development so that it can become an important growth driver of India. As per industry experts, the area will be well-developed within a few years. Therefore, real estate investors have had their eyes set on this area for a long time. So, go through this blog, if you are thinking about making a commercial real estate investment in Bijapur. 

Frequently Asked Questions