Commercial Real Estate Investment in Gosaba

Gosaba, a deltaic island village in South 24 Parganas is situated in the Indian state of West Bengal. A region lying in the Sundarbans, it is the largest mangrove forest on the planet and the native territory of the infamous Bengal Tigers. It is the main attraction for tourists from across the nation. 

The economy of Gosaba is based on tourism, honey collection and power. Sajnekhali Wildlife Sanctuary lying adjacent to the region of Gosaba is in the heart of Sundarban Tiger Reserves. Apart from the tiger reserve, many tourists on their way to Pakhiralay (Home of the Birds) travel to Gosaba, which is the nearest village at 6.9 km.

This region is in a deltaic region and does not have much access to the conventional form of energy. A biomass plant installed a few years back is the major source of energy in this region. Honey collection and fishing is also the mainstream occupation of the locals residing in this region. 

Top Reasons to Invest in Gosaba Real Estate

Here are some reasons why you should consider investing in commercial real estate in the developing region of Gosaba: 

• Tourism

The region adjacent to Gosaba, Sajnekhali lies in the heart of the Sundarban Tiger Reserve. The state’s Tourism Department has built lodging with all the necessary amenities to attract more tourists. 

Many people visit Gosaba on their way to Pakhiralay (Home of the birds). Tourists from foreign countries are required a special permit issued by the state’s tourism department to enter the territories of Sundarbans. 

Apart from various luxurious or semi-luxurious village resorts, there are a couple of jungle camps in Gosaba. One of them is the Sunderban Tiger Camp and the other one is on Bali Island. Resorts in Gosaba are growing in popularity amongst real estate investors.

• Honey Collection

Honey collection is one of the major occupations in the region of Sundarban. About tens and thousands of kilograms of honey are extracted every year. The locals residing in places namely Canning, Gosaba, Kakdwip, and Namkhana are Honey collectors by occupation. Therefore commercial investment possibilities revolving around the honey trade provide lucrative opportunities.

• Power

Gosaba being situated in a deltaic region does not have access to conventional forms of power. Therefore, the West Bengal Government has installed a biomass power plant on the island which acts as a main source of power in the region. Plans of setting up tidal power plants are in progress. Activities revolving around this power plant have a major impact on the commercial investment potential of Gosaba.

Commercial Real Estate Investment Opportunities in Gosaba

There are several locations in Gosaba where you can consider investing in commercial properties. Some of these areas are listed:

• Jharkhali

Jharkhali, the locality in Gosaba popularly known as a new gateway to the Sundarbans, is a hotspot among tourists. This locality has numerous luxury, semi-luxury and cottage-type resorts. Real estate properties for commercial purposes in this region can cost somewhere around ₹69 per square foot. If you are planning to invest in a commercial space revolving around tourism, this place could be a good option.

• Arampur

Arampur is a small village located in the Gosaba subdivision of South 24 Parganas with public & private bus services available in less than 5 km and the nearest railway station in less than 10 km. Tourism or honey trade-related commercial activities are expected to flourish in this region.

Things to Consider Before Buying a Commercial Property in Gosaba

Here are some factors that you should keep in mind before investing or purchasing a commercial property in Gosaba.

Accessibility 

For any business, user-friendly services like sufficient parking, lift, etc., are necessary for customers. So, a commercial property with these amenities will have high demand among tenants. Also, a property located near public transportation services will be accessible for employees and customers.

Before finalising a purchase, make sure to research what facilities are available near a given commercial property.

Location & Connectivity

As this region lies within the territories of a forest, high-end connectivity of roads cannot be expected. However, public transport like private & public bus services can be availed in Gosaba within less than 5 km from the region. 

The railway station is within the range of 10 km from the area. When purchasing a commercial property in Gosaba, check its distance from highways, railway stations and transportation services.

Check Authenticity through RERA 

Real Estate Regulatory Authority (RERA) is a statutory body formed by the Real Estate (Regulation and Development) Act, 2016. The main aim was to introduce transparency and accountability in the real estate industry.

All builders and brokers of a particular state must register on the RERA platform of their respective state. All authentic and legal commercial properties in Gosaba must be registered on the RERA portal of West Bengal. This means you can check the authenticity of any builder and property by visiting the RERA website of West Bengal.

Stamp Duty in Gosaba

The stamp duty rates for the sale of commercial property in Gosaba are as follows:

Registration Charges in Gosaba

It is mandatory to register the property in your name by paying registration fees to the State Government. In West Bengal, the registration charges are:

Gosaba Commercial Real Estate Sector: What’s the Forecast?  

Gosaba is one of the key attractions among tourists as this deltaic island village lies in Sundarban Forest Reserves, a territory ruled by the big cats (infamous Bengal Tigers). Sundarbans Forest Reserves are said to be the largest mangrove forests in the globe. Tourists across the country visit this place to get a glance at tigers from a boat or a watchtower.

Both local authorities and various cooperative societies are taking measures to deal with the problems prevalent in Gosaba. The Gosaba Community Development Block is undertaking the construction of embankments; 372.5 km of embankments have been completed. Moreover, cooperatives like the Tagore Society for Rural Development of Rangabelia are introducing new agriculture methods for the residents.

If you are planning to invest in a commercial space, properties like hotels, resorts, guest houses, lodging, and activities revolving around the honey trade are viable options.

Commercial Real Estate vs Other Asset Classes 

Here we have compared the risk associated with and returns generated from commercial real estate against other asset classes. 

Commercial Real Estate vs Stocks & Mutual Funds

In terms of return on investment, (ROI) the return potentials of stocks and mutual funds are higher than commercial real estate. The real estate industry is comparatively less volatile; on the other hand, stock markets witness high fluctuations in their returns, making it difficult for investors to make financial plans.

Commercial Real Estate vs Gold

Gold investments are always considered safe and reliable but the returns generated from commercial properties are much higher. However, gold offers better liquidity as you can easily convert it into cash which is not the case with commercial real estate investment.

Commercial Real Estate vs Residential Real estate

Return on investment (ROI) in a commercial real estate investment is comparatively higher than that of residential real estate investments. However, residential real estate also carries lower risks in comparison. Commercial properties have higher demand in the market and offer more opportunities for additional income.

Commercial Real Estate vs Bonds 

Return on investment (ROI) in a commercial real estate investment is comparatively higher than in bonds. Bonds provide moderate returns at low risks for investors. It is a good option to park your excess funds for a temporary period to earn fixed interest. Unlike bonds, real estate investments are involved with higher credit risks i.e. rental income generated from these commercial properties depends on the payment behaviour of tenants.

Here’s a tabular representation that compares the assets based on returns, liquidity, risk, volatility and ticket price. 

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Steps to Invest in Commercial Real Estate in Gosaba

You can follow the steps given below to find and purchase a commercial property in Gosaba.

Step 1: Firstly, try to find a well-reputed broker who can help you find the best property to invest in Gosaba. Experienced brokers can provide you with practical insights about the locality.

Step 2: Secondly, framing and fixing a budget will help you narrow down your search.

Step 3: Shortlist the most appropriate property which best suits your budget and conduct an on-site inspection of the same to get a practical experience. Also, take assistance from a real estate agent or broker for your purchase.

Step 4: It is recommended to check the authenticity of the target property and its builder in the RERA portal to avoid falling into fraudulent malpractices.

Step 5: Keep all the required documents handy and avail legal assistance whenever necessary before proceeding through the documentation process.

Step 6: Complete your due payments for your property and pay a commission to your real estate agent or brokers if you have availed their services.

Step 7: Post completion of the payment, finalise the registration process and complete all the formalities associated to get the property transferred under your name.

Step 8: Lastly and most importantly, you should get your property insured to mitigate all the possible risks associated.

Final Word

Gosaba is a key attraction among tourists as this deltaic island village lies in Sundarbans, the territory ruled by the big cats. The economy of this region is based on tourism, honey collection, fishing etc. Therefore if you are planning to invest in any of the commercial properties like resorts, hotels, guest houses, or lodging then this place is worth investing in.

Frequently Asked Questions