Commercial Real Estate Investment in Muzaffarnagar
Muzaffarnagar, also popularly known as the “Sugar Bowl of India”, is a city in Uttar Pradesh that is noteworthy across the world for its sugarcane production. This city is slowly shifting from an agrarian city to an industrial one with booming industries across various sectors.
Muzaffarnagar lies in the Ganga-Yamuna doab which offers fertile land for agriculture. Furthermore, this city is also a part of the Mumbai Industrial Corridor and Amritsar-Delhi-Kolkata Industrial Corridor. The city is located at a convenient location between Delhi and Dehradun, 125 km from the national capital.
As a result, it gains prominence as an important industrial city in India. This city has 8 sugar mills and is pivotal in the jaggery trading business in India. Apart from the sugar industries, Muzaffarnagar has prominent steel plants and paper mills that drive the local economy.
Keep reading to know the perks of investing in commercial properties in Muzaffarnagar.
Top Reasons to Invest in Muzaffarnagar Real Estate
Here are some of the prime reasons for you to consider investing in commercial real estate in Muzaffarnagar.
- Sugar Hub of India
As the Sugar Bowl of India, Muzaffarnagar hosts 11 major sugar mills throughout the city. This city is also the largest producer of jaggery or ‘gud’ throughout the globe. This city also engages in trading its sugar produce across the nation. As a result, warehouses are in high demand for facilitating the storage and trading of sugar and other agricultural products.
Tourism is also a growing business in the city of Muzaffarnagar. This city serves as a pilgrimage centre for many ancient and revered Hindu temples. Pilgrims from all over India come here to pay their homage to these temples. Therefore, hotel chains and restaurants are booming here steadily. Some of these temples are Bhairao ka Mandir, Ganesh Temple, Sukhdev Temple and Shiv Chowk.
Commercial Real Estate Investment Opportunities in Muzaffarnagar
Here are a few places in Muzaffarnagar where you can invest in commercial properties to earn good ROI.
- Bhopa Road
This is a lively locality in Muzaffarnagar with several residential neighbourhoods, shopping malls and restaurants. You can access this area from other parts of Muzaffarnagar via public transportation.
With schools, hospitals and banquet halls spread throughout, Bhopa Road is a popular recreational and shopping destination for residents of this city. You can invest in banquet halls, shopping spaces, and lands for commercial activities to earn good returns on investments.
Commercial property prices in Bhopa Road start from ₹18 lakh approximately.
This is another popular neighbourhood in Muzaffarnagar. This area also hosts several marketplaces, offices and industries in close proximity. This aids the basic and employment needs of residents of Khatauli.
You can find several office and shop spaces to invest in and earn substantial returns. The NH-58 highway passes through Khatauli serving as a major commutation route for people visiting Muzaffarnagar.
Commercial property prices in Khatauli start from ₹25,000 approximately.
Things to Consider before Buying a Commercial Property in Muzaffarnagar
Here are a few things you must consider before purchasing commercial real estate in Muzaffarnagar.
- Location and Connectivity
Before investing in a commercial property, consider researching its location. This includes its positioning within the city or outskirts. Also, consider knowing about the frequency of public transportation in the area. Furthermore, if your property lies near a railway station or highway, it can attract more businesses owing to the ease of reaching customers.
- RERA Authentication
The Real Estate (Regulation and Development) Act, 2016 mandates the formation of a statutory body to monitor accountability in real estate transactions. This is done by the Real Estate Regulatory Authority (RERA). Every broker and builder in Muzaffarnagar must register in the RERA portal of Uttar Pradesh’s website before selling real estate.
You can also check the authenticity of your shortlisted properties here to make an informed decision while purchasing.
Amenities play a vital role in pulling tenants towards your property. Business owners usually look for best-in-class urban amenities that suit their goals.
Therefore, while investing in a commercial property, make sure it has all the necessary facilities that will make it stand out. This includes a proper parking facility, elevator services, and adequate office spaces. If you are investing in properties for warehouses, they must have a proper storage facility, and temperature regulators among others.
It is also important to note that, the façade of your building is also important to reflect your tenants’ businesses.
Stamp Duty in Muzaffarnagar
The table below highlights the stamp duty charges applicable on the purchase of commercial properties in Muzaffarnagar.
|Female + Female||6%|
|Male + Male||7%|
|Male + Female||6.5%|
Registration Charges in Muzaffarnagar
Here are the registration charges that you must pay while purchasing commercial real estate in Muzaffarnagar.
|Female + Female||1%|
|Male + Male||1%|
|Male + Female||1%|
Muzaffarnagar Commercial Real Estate Sector: What’s the Forecast?
Muzaffarnagar is one of the important industrial cities of Uttar Pradesh for sugar production. Apart from sugar mills, this city hosts some prominent steel plants and paper mills. This city is also boosting its branches in fishery businesses and tourism. This makes this city a viable location for setting up new businesses.
Chief Minister Yogi Adityanath has informed that the UP Government is planning to attract investors to invest in industrial sectors in different districts of Uttar Pradesh. For this purpose, the government has been conducting roadshows in 18 different countries since December 2022. By February 2023, the govt. will have covered all districts before the start of the Global Investors Summit 2023.
Such measures will no doubt boost the local real estate sector in Muzaffarnagar. Therefore, you can invest in commercial properties like warehouses, hotels, banquets, and shops to earn regular returns.
Commercial Real Estate vs Other Asset Classes
Let’s discuss the differences between commercial real estate and other asset classes.
Commercial real estate vs Gold
Commercial real estate is only suitable for long-term investments whereas, you can opt for both long and short-term investments with gold. Furthermore, gold has a more liquid market than commercial properties. However, commercial real estate promises higher returns on investments than gold.
Commercial Real Estate vs Residential Real Estate
Commercial real estate is comparatively more expensive than residential real estate. As a result, you can earn higher returns by investing in commercial real estate. However, owing to their soaring prices, commercial properties also face high credit risk. Moreover, you do not get to enjoy the tax benefits that come only with residential properties.
Commercial Real Estate vs Stocks and Mutual Fund
Stocks and mutual funds have a volatile market and hence, are subject to market risks. Therefore, you need to have comprehensive knowledge of this marketplace before investing. Else you can face major losses here. On the other hand, commercial properties are less risky investments than stocks and mutual funds and offer decent returns.
Commercial Real Estate vs Bonds
Commercial real estate and bonds are excellent sources of passive income. Like gold, bonds also have higher liquidity than commercial properties. This is because finding suitable tenants for commercial properties takes more time than selling and purchasing bonds. However, you can fetch higher returns by investing in commercial properties than bonds.
If you are planning to invest in low-risk bonds and earn stable returns, explore our homepage. Here you will find an array of top-class bonds trending in today’s market.
The table below compares the above asset classes based on their liquidity, volatility, risks and ticket price.
|Parameters||Bonds||Gold||Residential Real Estate||Commercial Real Estate||Stocks & Mutual Funds|
Steps to Invest in Commercial Real Estate in Muzaffarnagar
Here are some basic steps that you can follow to invest in commercial real estate in Muzaffarnagar.
Step 1: Finalise your budget to invest in commercial properties in Muzaffarnagar.
Step 2: Conduct thorough research on potential locations and properties to know about their opportunities to flourish in future.
Step 3: Shortlist a few commercial properties that fit your budget.
Step 4: Opt for on-site research to closely analyse the property, the area and the locality. Consider seeking help from a qualified real estate advisor to know about prospects in the area.
Step 5: Finalise a commercial plot or property that suits your budget and investment goals.
Step 6: Check the property documents kept by the seller like the title deed, foundation certificate, and property assessment extract.
Step 7: After finalising your decision to buy, complete all payments to the seller.
Step 8: Complete the formalities regarding stamp duty and registration charges to transfer the property under your name.
Step 9: You need to pay service fees to brokers or real estate consultants for availing their services.
Step 10: Cover your newly purchased property with an insurance plan. This will safeguard you from any major financial loss in case of any damage to the property.
As Muzaffarnagar slowly treads towards urban life, you can find various scopes of investing in commercial and residential real estate here. However, consider knowing your risk appetite and budget before investing in real estate. Also, while investing in commercial properties in Muzaffarnagar, consider following the RERA guidelines to avoid falling victim to fraudulent activities.
Frequently Asked Questions
What documents I will receive on the purchase of commercial properties?
On purchase of commercial properties, you will receive documents like a completion certificate, sale deed, tax paid receipts, building plans, possession certificate, and encumbrance certificate.
What is an Encumbrance certificate?
This document stands as proof of a change of ownership from a seller to the buyer of the property. It accounts for all the registered transactions that occur on the property during a period you seek an encumbrance certificate.
What are some of the prominent steel industries in Muzaffarnagar?
Here are a few steel plants functioning in Muzaffarnagar:
What are the commercial properties I can invest in Muzaffarnagar?
You can invest in properties like plots of land, office and retail store spaces, malls, banquet halls, hotels and motels.