Commercial Real Estate Investment in Kulti
Kulti is a small municipality town in Asansol in West Bengal. This town is home to Kulti Works, a major Iron and steel industry in West Bengal. This company went into voluntary liquidation with the Indian Iron and Steel Company in 1936.
A significant number of people are employed in one of the steel and iron factories in and around Kulti. Besides its iron and steel industry, Kulti is also emerging as a real estate, coal, pipe manufacturing and garment industry hub in India. Located a few kilometres from Asansol city, residents of Kulti can find ample employment opportunities in the neighbouring cities of Asansol, Durgapur and Rajbandh.
As the infrastructure in this city grows, so will the demand for space for new industries and businesses. As such, you can invest in commercial real estate in this city for long term returns.
Keep reading to know the benefits of investing in commercial properties in Kulti.
Top Reasons to Invest in Kulti Real Estate
Here are a few reasons for you to consider investing in commercial real estate in Kulti.
The small city of Kulti is home to several ancient temples and lies close to the Maithan Dam. As a result, Kulti is growing as an off-route tourist destination for the people of the Vardhaman district. Furthermore, to entertain tourists and locals, several resorts, restaurants and amusement parks have been set up in Kulti. You can invest in such properties to benefit from the growth of tourism in this city.
- Industrial Hub
Kulti shelters several industries, including garments and apparel, real estate, pipelines and steel. The IISCO Steel Plant lies on the outskirts of Kulti in the Burnpur area of Asansol. This steel plant largely contributes to Kulti’s economy along with other sectors.
Therefore, you can invest in warehouses, restaurants, and shop spaces in this city to earn high ROI.
- Strategic Location
Kulti is strategically located in Asansol with proximity to the state capital Kolkata and Jharkhand. Owing to this, it becomes easy for steel plants to import raw materials and resources to function.
For instance, IISCO Steel Plant imports iron ore from Odisha and Jharkhand mines. They also receive coal from the mines of Jharia. The Kolkata port offers seamless transportation of these raw materials and finished products.
Commercial Real Estate Investment Opportunities in Kulti
Here are a few places you can invest in commercial properties in Kulti.
Ushagram is a developing residential and commercial area in Kulti. The locality is situated in a place that attracts employees from nearby industrial areas to settle with their families. Furthermore, with the growth in the number of residents, there is a growing demand for shops, restaurants and other recreational areas.
You can invest in plots of land and restaurant, office or shop spaces to earn high rental gains. Property rent in Ushagram ranges from ₹18,900 to ₹2.5 lakhs per month approximately.
This is a small town lying on the outskirts of Kulti. This area is considered the heart of the coal mining zone in Bardhaman district. Therefore, if you are planning to invest in commercial properties like warehouses, you can choose to invest here. You can also invest in showrooms and shops in Murgathaul for rental income.
Property rent in Murgathaul varies from ₹35,000 to ₹86,400 per month approximately.
Things to Consider before Buying a Commercial Property in Kulti
Here are the certain points you must keep in mind before investing in commercial real estate in Kulti:
- RERA Authentication
To monitor transparency in the country’s real estate sector, the Real Estate (Regulation and Development) Act, 2016, introduced a statutory body, Real Estate Regulatory Authority (RERA). All builders need to register their properties under the RERA portal of websites of their respective states.
However, West Bengal Housing Industry Regularity Authority (WBHIRA) performs this role in West Bengal instead of the RERA. However, the State Government intends to set up a new RERA portal in the future for this purpose.
Amenities play a crucial role in attracting tenants to a commercial property. Therefore, consider going for on-site research to check the ground reality of the amenities your shortlisted properties provide. This includes adequate parking, storage spaces, elevator service, CCTV arrangements and many more.
Your property is likely to attract more tenants if they find it appropriate for their business. The property you invest in must reflect the same. For example, the façade or the exterior of your property is important for attracting a certain type of tenant.
- Location and Connectivity
The location of the property you are investing in is also important for attracting businesses. For instance, if your property lies in the heart of the city or a busy locality, you are likely to earn high returns on investment. As this area will be easily accessible from any corner of the city, it draws more customers.
However, if you are investing in a property in the city outskirts, consider researching the transport facilities from nearby cities. Properties like hotels, industries or warehouses on the city outskirts are likely to bring more returns if they have excellent connectivity.
Stamp Duty in Kulti
Here are the stamp duty charges applicable on commercial properties in Kulti.
|For properties at or below ₹25 lakhs||5%|
|For properties above ₹25 lakhs||6%|
Registration Charges in Kulti
The table below displays the registration charges on commercial properties in Kulti.
|For properties at or below ₹25 lakhs||5%|
|For properties above ₹25 lakhs||6%|
Kulti Commercial Real Estate Sector: What’s the Forecast?
The Asansol Durgapur Development Authority (ADDA) along with the West Bengal Government is taking initiative to develop medium and small-scale industries in this district. The authorities are implementing a major plan to develop the towns in this district as technological and educational hubs in the forthcoming days.
With the urban population growing from 77% in this district, there are opportunities for offices, restaurants and malls coming up in Kulti. The villages and towns in and around Kulti have the potential to attract small and large-scale investors looking to earn substantial returns by investing in commercial real estate here. You can also invest in warehouses, showroom shops, commercial lands and hotels in areas out skirting Kulti.
Commercial Real Estate vs Other Asset Classes
Here are the differences between commercial properties and other asset classes based on returns of investment, risks and liquidity.
Commercial Real Estate vs Stocks and Mutual Funds
Stocks and mutual funds are volatile and are subject to market risks. Therefore, you need to have a thorough idea about this marketplace before investing. Without prior knowledge, you can face massive losses instead of high returns. In contrast, commercial properties offer decent returns at less credit risk.
Commercial Real Estate vs Bonds
Commercial properties and bonds are excellent sources of passive income. However, selling and purchase of commercial real estate is more time-consuming than bonds. Also, bonds with high credit ratings carry low risks due to their fixed interest rates and higher liquidity.
If you are planning to invest in bonds and earn decent returns at low risks, visit our homepage. Here you can find a list of bonds trending in the market and start investing. So, register now and start investing in top-rated bonds.
Commercial Real Estate vs Gold
Gold is suitable for both long and short-term investments whereas commercial real estate is fit for long term investments only. It is also important to note that gold prices are more volatile than prices of commercial properties as gold is a commodity. Commercial real estate offers better returns than gold in the long term.
Commercial Real Estate vs Residential Real Estate
Commercial real estate is more expensive than residential real estate. However, owing to their soaring prices, commercial properties tend to bring in more returns than residential ones. Also, commercial properties are prone to more credit risk than their residential counterparts.
The table below compares asset classes based on their liquidity, volatility, risks and ticket price.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Commercial Real Estate in Kulti
Here are the certain steps you should follow to invest in commercial real estate in Kulti.
Step 1: Fix a budget to invest in residential properties in Kulti.
Step 2: Shortlist a few locations based on your requirements.
Step 3: Conduct on-site research to analyse the ground situation.
Step 4: Visit these locations for a thorough understanding of your benefits. Consider seeking help from real estate consultants to learn about prospects in the area.
Step 5: Finalise and purchase a property after checking its WBHIRA authenticity.
Step 6: Make the necessary payments to transfer the property under your name.
Step 7: Collect the necessary documents like the sale deed and Encumbrance Certificate.
Step 8: Pay the necessary charges like stamp duty and registration charges to transfer the property under your name.
Step 9: Consider paying the service charges to brokers or real estate consultants. (If any)
As the small town of Kulti moves towards urbanisation and focuses on infrastructural development, one can find ample opportunities to invest in commercial properties here. Furthermore, investments in such a small town will likely net high returns over the long term as various development projects improve the local economy. But before investing ensure to be aware of the risks and the future prospects of the localities from a real estate expert.
Frequently Asked Questions
Why is Kulti famous in the Indian industrial sector?
Kulti is home to the Steel Authority of India Limited’s (SAIL) owned Indian Iron and Steel Company (IISCO) Steel Plant. This is the site of India’s first blast furnace steel plant in India which was closed down in 1958.
What are the main areas for commercial real estate investment in Kulti?
The major areas surrounding Kulti where you can consider investing in commercial real estate are Ushagram, Murgathaul, Burnpur and the Kalyanpur Satellite Township. These areas are developing into towns as more and more people are moving in here.
Why is it important to follow RERA guidelines before investing in commercial real estate?
By following RERA guidelines, you can avoid fraudulent activities and project delays while purchasing a property. With its guidelines, RERA bodies maintain accountability and transparency in the real estate industry of India.
What documents I shall receive after purchasing commercial real estate in Kulti?
After purchasing a commercial property, you will receive certain important documents. This includes the sales deed, Encumbrance Certificate, building approval plan, khata extract and certificate and Power of Attorney certificate.