Commercial Real Estate Investment in Nanded
Nanded is the 10th largest city in the Indian state of Maharashtra and the second largest in the Marathwada region. Being a historical place, it is famous among tourists due to the presence of the Nanded Fort, temples, gurudwaras and churches. It also has a Regional Cotton Research Centre to support the cotton-growing industry in Nanded. Moreover, there are other crops manufactured and exported from here like, bananas, sugarcane, mangoes, soya beans, etc.
The city has a great connectivity and transportation system through roads, railways and airways, making it convenient for both domestic and commercial purposes. Hence, tourism, export, industries, connectivity, etc., are increasing the demand for commercial real estate here.
Let us know the benefits of investing in Nanded’s commercial real estate.
Top Reasons to Invest in Commercial Real Estate in Nanded
The reasons to invest in the commercial real estate of Nanded, Maharashtra are as follows:
- Tourism Hub
Nanded is the place where the last Sikh guru, Guru Govind Singh ji, spent his last surviving days before passing away, making it a famous tourist spot. The Nanded Fort located on the Godavari River’s banks also contributes to the tourism of this city. Moreover, there are numerous Hindu temples, gurudwaras and churches, which attract devotees from all parts of the state.
Nanded has great connectivity through roadways, railways and airways for both commercial and domestic purposes. It is also close to highways such as NH 61, NH 361, and NH 161, connecting many important places in Maharashtra. The Shri Guru Gobind Singh Ji Airport in Nanded serves daily domestic flights to Hyderabad, Mumbai and Jalgaon for both travelling and trade purposes.
Commercial Real Estate Investment Opportunities in Nanded
The locations having the best opportunities for commercial real estate investment in Nanded, Maharashtra are as follows:
- Taroda Kh.
The area is near housing estates which increases the demand for commercial real estate here. Moreover, infrastructural facilities like proper connectivity, constant police patrol, etc., make it more attractive among investors.
It is a well-known area for commercial real estate investment in Nanded with good connectivity, transportation and all basic amenities. The property prices of this area are much more affordable in comparison to any other commercial areas of Nanded.
Things to Consider Before Buying a Commercial Property in Nanded
The primary things to consider before purchasing a commercial real estate property in Nanded, Maharashtra are as follows:
- RERA Verification
The Real Estate Regulatory Authority (RERA) is a statutory body notified by the RERA Act 2016. The main aim of the body is to promote transparent and authentic real estate business between buyers and agents. You can check the authenticity of a property and its builder in Nanded by visiting the RERA website of Maharashtra.
- Market Research
Purchasing a commercial real estate property involves enormous risk and thus, needs a substantial amount of market research and knowledge, especially about the builder. In addition, consider the paperwork important and have a proper discussion about it with your broker, to avoid fraud and losses.
Stamp Duty Rates in Nanded, Maharashtra
The stamp duty rates for real estate property sales in Nanded, Maharashtra, are as follows:
|Gender||Stamp Duty Rates|
|Male||6% (Stamp duty 5% + Local Body Tax (LBT) 1%)|
|Joint (Male + Female)||5%|
|Joint (Male + Male)||6%|
|Joint (Female + Female)||5%|
Note: A local body tax (LBT) of 1% is added to the stamp duty, as shown in the first case. A buyer must pay this while purchasing any real estate property in Nanded, Maharashtra. A rebate has been announced by the state government to encourage the participation of women in real estate.
Registration Charges in Nanded, Maharashtra
The registration charges for real estate property in Nanded, Maharashtra are as follows:
|Property Value||Registration Charges|
|Property value below ₹30 lakhs||1% of the property value|
|Property value above ₹30 lakhs||₹30000|
It is crucial to consider the rates of stamp duty and registration as they will be a part of your investment amount.
Nanded Commercial Real Estate Sector: What’s the Forecast?
The real estate of Maharashtra witnessed a total revenue generation of ₹32,000 crore in FY 2022-23. Although it is a little lesser than the PY 2021-22, it still ended up hitting the highest selling records in real estate. This sale influenced all areas of Maharashtra, especially the main commercial hubs including Nanded. In addition, the development of metro lines 2A and 7 is again boosting commercial real estate demand in the city.
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 substantial returns with direct asset ownership. On the other hand, stock market and mutual funds witness great fluctuation which is why such investments do not tend to offer stable returns.
- Commercial Real Estate vs Gold
Commercial real estate is considered a stable investment option that offers the opportunity to generate passive rental income. On the contrary, gold investments tend to be risky as it can get stolen and the returns depend on the global market scenario.
- Commercial Real Estate vs Residential Real Estate
Residential properties face a lack of demand than commercial spaces, especially in the premium category. Moreover, it needs 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 are less liquid than bonds due to their high transaction costs and the long time it takes to find property buyers. Moreover, commercial real estate investment is exposed to the credit risk associated with tenants who needs to make timely lease payments.
A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:
|Parameters||Commercial Real Estate||Gold||Residential Real Estate||Stocks & Mutual Funds||Bonds|
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Steps to Invest in Commercial Real Estate in Nanded
The steps to invest in commercial real estate in Nanded, Maharashtra are as follows:
Step 1: Estimate your investment budget.
Step 2: Conduct proper market research on sites that have high development potential.
Step 3: After shortlisting a few sites as per your requirements, plan a field visit to each site to examine them properly.
Step 4: Finalise a commercial property that is suitable and prepare the necessary documents such as title deed, sale agreement, encumbrance certificate, building plan, etc.
Step 5: Complete the payment process to purchase the property. Make sure to pay the requisite stamp duty and registration charges.
Step 6: Lastly, consider purchasing insurance for your property to safeguard yourself financially in case your property incurs any damages.
The outlook of Nanded for commercial real estate is great considering its industrial and tourism background. It also has well-developed infrastructural and connectivity facilities, providing some of the best services to people employed here. All these are increasing the demand for commercial real estate in Nanded. However, it is also important to undergo proper market research before investing to avoid fraud or losses.
Frequently Asked Questions
Is it better to invest in a residential or commercial property in Nanded?
Although Nanded supports both, it is better to invest in a commercial real estate property over a residential space in Nanded. The main reason for this is tourism and its significance among the Sikh community. Other than this, Nanded is an industrial hub, creating demand for more commercial spaces in this city.
What is the average price of a real estate property in Nanded?
The average price of a real estate property in Nanded is approximately ₹2100 per square foot. However, the property prices in Nanded start approximately from ₹350 to ₹400 per square foot.
Can I pay registration and stamp duty charges online in Maharashtra?
Yes, it is possible to pay stamp duty and registration charges online in Maharashtra. For this, you have to visit the GRAS website and go to the payment option. Here, you can choose the mode of payment and then enter the captcha code to complete your payment.
What are the documents required to register a real estate property?
The main documents required to register a real estate property are sale deed, No Objection Certificate (NOC) from the builder and banks, building plan approvals, PAN Card, Completion Certificate and passport-size photographs.