Commercial Real Estate Investment in Karaikkudi

Karaikkudi is a greater municipality and one of the largest urban agglomerations in the Sivagangai district of Tamil Nadu. It serves great connectivity to many important places through roads and highways like the Trichy-Rameswaram Highway. It is famous for rice and paper mills which contributes to the generation of employment here. 

With developing infrastructure and basic amenities, this area is in demand for investing in commercial real estate. 

Let us know why you should invest in Karaikkudi’s commercial real estate sector. 

Top Reasons to Invest in Commercial Real Estate in Karaikkudi

The top reasons to invest in the commercial real estate of Karaikkudi are as follows:

1. Connectivity

Karakkudi is a town in Tamil Nadu famous for its connectivity to many important places through roadways, airways, railways and waterways. It is in close proximity to important highways like NH 38 and the Vellar River waterway which ensures easy connectivity. Moreover, this area has two airports nearby – the Tiruchirapalli International Airport and Madurai International Airport. 

2. Infrastructure

With regular initiatives launched by the state government, this place has developed in many ways, especially when it comes to providing access to basic amenities. Due to the city’s unique architectural style, UNESCO offered to set up a museum here. This has been one of the important steps towards the city’s development, as it can make this place a hotspot for tourism. 

Commercial Real Estate Investment Opportunities in Karaikkudi

The locations offering the best opportunities for commercial real estate investment in Karaikkudi are as follows:

1. Sekkalai Kottai

The connectivity of the village of Sekkalai Kottai makes it important for commercial real estate among investors. This area is connected through highways like NH 383 and NH 38, along with waterways through the Vellar River. It usually attracts investors interested in building factories and industries in this area. 

2. Ariyakudi 

The area of Ariyakudi in Karaikkudi is one of the famous commercial real estate hubs due to its connectivity via roads and railways. It aces in terms of offering basic amenities like 24×7 electricity facilities, water supply, and many more. People usually invest in storage areas in this area due to its strategic location.

Things to Consider Before Buying a Commercial Property in Karaikkudi

The primary things to consider before purchasing a commercial real estate property in Karaikkudi, Tamil Nadu are as follows:

• RERA Verification

The Real Estate Regulatory Authority (RERA) is a statutory body promoting transparent and authentic transactions between real estate agents and buyers; the authority was notified by the RERA Act 2016. Every state has its own RERA body. You can check the authenticity of the builder and their property in Karaikkudi by visiting the RERA website of Tamil Nadu.

• Builder’s History

If you are planning to invest in any builder’s commercial property, check their past projects and their goodwill in the market. You must also check whether there are any ongoing court cases against the builders or the chosen property.

Stamp Duty Rates in Karaikkudi

The stamp duty rates for real estate property in Karaikkudi, Tamil Nadu, as per the document category are as follows:

Registration Charges in Karaikkudi

The registration charges for real estate property in Karaikkudi, Tamil Nadu as per the document category is as follows:

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

Considering the real estate sector forecast, the entire state of Tamil Nadu has witnessed around 21% YoY growth in sales during the first half of FY 2022. This has created a huge impact on Karaikkudi by increasing its property sales. 

Moreover, there is an unused airport in Karaikkudi known as the Chettinad Airport or Karaikkudi Airport. The Government is planning to reopen it for domestic and industrial purposes under the UDAN scheme. Such initiatives will definitely boost the real estate industry of the city in the upcoming years. 

Commercial Real Estate vs Other Asset Classes

The comparison between commercial real estate and other asset classes has been discussed below: 

• Commercial Real Estate vs Stocks & Mutual Funds

Commercial real estate offers assured returns with direct asset ownership. Although stocks and mutual funds offer higher returns, they are highly volatile and witness great fluctuation based on market sentiments. 

• Commercial Real Estate vs Gold

Real estate is a stable investment option which offers the opportunity to generate passive income. Moreover, gold has a high risk of being stolen and the returns depend on various macroeconomic factors. 

• Commercial Real Estate vs Residential Real Estate

The vacancy risks in residential real estate are higher than in commercial real estate with frequent tenant turnover. Moreover, residential properties need to be leased on an annual basis, but office spaces can be leased for longer tenures.

• Commercial Real Estate vs Bonds

Commercial real estate investments have less liquidity than bonds due to high transaction costs and the long time it takes to find a suitable buyer for the property. In addition, bonds have a lower credit risk than commercial real estate properties. 

A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:

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Steps to Invest in Commercial Real Estate in Karaikkudi

The steps to invest in commercial real estate in Karaikkudi, Tamil Nadu are as follows:

Step 1: Finalise your investment budget and conduct proper market research.

Step 2: Shortlist some budget-friendly sites and plan a field visit to these sites to analyse them minutely.

Step 3: Select a commercial real estate property as per your requirements and prepare the official documents such as title deed, sale agreement, building plan, etc. 

Step 4: Complete the payment process to purchase the property. Make sure to pay the requisite stamp duty and registration charges. 

Step 5: Lastly, consider purchasing an insurance plan for your property to safeguard yourself financially in case your property incurs any damage in the future. 

Final Word 

The outlook of Karaikkudi for commercial real estate is quite promising due to its location, connectivity and infrastructure. This area is actively attracting real estate investors due to the positive changes introduced by the Government here. However, it is also necessary to conduct thorough market research and consult a real estate agent before investing to avoid fraudulent activities.

Frequently Asked Questions