Commercial Real Estate Investment in Nizamabad
Nizamabad is an important commercial hub in Telangana with a well-developed industrial sector. The Gross District Domestic Product in 2015-16 for this city was ₹21,27,346. Some of the major industries in this city are agro-based industries, healthcare and tourism. Apart from that, there are numerous business establishments in this city like shopping malls, supermarkets, hotels and restaurants.
This city is becoming an attractive destination for commercial real estate investment due to the infrastructural facilities available here. It is well connected to the other parts of the country via roadways and railways. Basic facilities required for business establishments like banking, insurance and healthcare are also highly developed in Nizamabad.
Thus, you can also invest in commercial properties in Nizamabad and earn generous returns from it. Read along to know more about the commercial real estate investment options in this city.
Top Reasons to Invest in Nizamabad Real Estate
These are some of the significant reasons why Nizamabad is the favoured destination nowadays for commercial real estate investment:
- Industries and Commerce
Nizamabad is a booming industrial city which is undergoing continuous development. The State Government has set up industrial parks in different areas of this city like Sarangpur and Nehru Nagar.
Agro-based industries occupy a major place in the economy of this city. It is the largest producer of rice in the state and has numerous rice mills. The Nizam Sugar Factory is located here, which was the largest sugar factory in Asia during the reign of the Nizams. There is also a thriving spice park in this city.
Apart from these, there are innumerable businesses in this city. Amenities like malls, supermarkets, hotels and restaurants are available in every corner of Nizamabad. This makes the local economy thrive and encourages the development of new businesses.
- Transport and Connectivity
Transportation facilities are an important prerequisite for the establishment of any commercial business in a city. Nizamabad has easy access to other parts of the country via a vast network of road and rail transport.
Nizamabad is well-connected by various national and state highways to various other cities and towns in the state. The NH-44, which bypasses this city, connects northern cities to southern Indian cities. NH-63 connects Nizamabad to Jagadalpur in Chhattisgarh. The Telangana State Road Transport Corporation operates buses from this city, linking it to other cities and towns within the state.
Commercial Real Estate Investment Opportunities in Nizamabad
Here are the best locations to invest in commercial real estate in Nizamabad:
- Vinayak Nagar
Vinayak Nagar is a commercially vibrant locality in Nizamabad. It is linked to other parts of this city by regular bus services. This area has all the required basic amenities like financial institutions and healthcare facilities.
There are different types of businesses in this locality. There are several malls here like Venu Mall, Reliance Mall, South India Shopping Mall and South India Shopping Mall. There are also several supermarkets like the Vishal Mega Mart and SS Complex.
The cost of renting commercial properties in this locality is between ₹3,000 and ₹10,000 per sq. foot.
Kamareddy is another important commercial locality in Nizamabad. It has an excellent transportation facility which links it not only to other areas of this city but also to the nearby cities and towns. There are 10 bus stops in this location. Furthermore, this area is close to the Kamareddi Railway Station.
Here, you can find the major bank branches as well as some excellent hospitals like Jaya Multispeciality hospital and Sri Padmavathi Multispeciality Hospital.
Apart from numerous other business ventures which are located in this area, there are also several malls and supermarkets in this locality. There are also prominent restaurants and food joints in this area such as the Oyalo Pizza, Hotel Sahasra Restaurant and Bar and Padmanabha Tiffins and Chinese Food Court.
Property rates in this locality are between ₹2,500-₹4,000 per sq. foot.
Things to Consider before Buying a Commercial Property in Nizamabad
You need to consider the following factors before deciding to invest in a commercial property in Nizamabad to ensure the best returns.
- RERA Authenticity
Under the provisions of the Real Estate (Regulation and Development) Act, 2016, every state has a statutory body which is responsible for the regulation of its real estate market. The main role of these bodies is to maintain transparency and authenticity in the real estate sector and prevent property-related fraudulent activities.
Therefore, before investing in commercial real estate in Nizamabad, visit the Telangana RERA portal to check the authenticity of the property and its builder.
- Location and Connectivity
The location of a commercial property is another major consideration that decides its demand and price. Thus, look at whether this property is located near infrastructure like banking services, hospitals, and allied industrial and commercial businesses.
Also, look at whether this property is at a location which has easy access to transportation services. Commercial properties near high-traffic locations and ones with access to national highways fetch the highest demand. This in turn affects the value and rental prospects of a property.
Stamp Duty in Nizamabad, Telangana
Given in the table below are the stamp duty rates for a commercial property in Nizamabad:
|Sales Agreement||Stamp Duty|
|Sale of immovable property in corporations, selection grade and special grade municipalities||4%|
|Sale of immovable property in other areas||4%|
|Sale agreement with possession||4%|
|Sale agreement without possession||0.5%|
|Sale of a semi-furnished flat||4%|
|Sale agreement with GPA||5% (4% adjustable and 1% not adjustable)|
Registration Charges in Nizamabad, Telangana
Here are the registration charges for commercial property in Nizamabad:
|Sales Agreement||Registration Charges|
|Sale of immovable property in corporations, selection grade and special grade municipalities||0.5%|
|Sale of immovable property in other areas||0.5%|
|Sale agreement with possession||0.5%|
|Sale agreement without possession||0.5%|
|Sale of a semi-furnished flat||0.5%|
|Sale agreement with GPA||₹2,000|
Commercial Real Estate Sector in Nizamabad: What’s the Forecast?
The State and Central Governments are making efforts to develop the business infrastructure of Nizamabad with the aim to attract potential business investors to invest here. There are plans to undertake projects for enabling large-scale industrial growth, mainly focusing on large and small-scale industries in Nizamabad.
Chief Minister K Chandrashekhar Rao has started several city beautification projects in Nizamabad and intends to them completed 2 and a half months from November 2022. The various development projects include the conversion of gravel roads to BT roads and the development of integrated markets, community halls and public gardens.
In addition, the CM has cleared ₹50 crore in funds for the construction of the Kala Bharti Auditorium in Nizamabad. This auditorium has a 50,000 square feet capacity and it is expected to be completed in 18 months.
With the completion of these development projects, Nizamabad will be converted into a world-class destination, frequented by domestic and international tourists. As the demand for commercial spaces increases, the prices of property will increase in Nizamabad. Thus, it is the best time to invest in commercial real estate to receive high returns in the future.
Commercial Real Estate vs Other Asset Classes
Here is a comparison between commercial real estate and other asset classes in terms of their advantages and disadvantages:
- Commercial Real Estate vs Stocks and Mutual Funds
Stocks can get you higher returns than commercial properties. However, stocks are highly volatile and their prices can fluctuate according to market conditions. Thus, it is much safer to invest in commercial real estate.
- Commercial Real Estate vs Gold
Commercial real estate can get you higher returns than gold investment. However, gold has higher liquidity than commercial properties. Also, the only gains you can make from gold are from capital appreciation.
- Commercial Real Estate vs Residential Real Estate
Commercial real estate has a higher resale value than residential real estate due to its higher rental price and market demand, especially in prime locations. Furthermore, the rental prospects of commercial properties are much higher, especially in the premium category, than residential properties.
- Commercial Real Estate vs Bonds
Both commercial real estate and bonds can get you a stable income. However, bonds have lower credit risk than commercial property since profits from real estate depend mostly on timely lease payments. Furthermore, bonds have higher liquidity than commercial real estate.
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|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Commercial Real Estate in Nizamabad
Follow these steps to invest in the commercial real estate of Nizamabad:
Step 1: Finalise your budget.
Step 2: Search online for the best localities to invest in based on the demand for the locality and ongoing infrastructure development.
Step 3: Select a few properties that match your search criteria and visit these localities to look into the infrastructure and amenities available.
Step 4: Choose a suitable property and check whether the property owner has the required documents of ownership like the title deed, encumbrance certificate and letter of possession.
Step 5: Complete the payment for purchasing the property.
Step 6: Pay the requisite stamp duty and registration charges to become the legal owner of that property.
Nizamabad is a rapidly developing city. As more and more businessmen and investors invest in this city, the rates for commercial property will rise. Thus, investing now in commercial real estate in Nizamabad can get you high profits in the future. However, before buying a property, consult a real estate agent to make an informed decision.
Frequently Asked Questions
What is the registration charge?
The registration charge is charged by the State Government to put a contract deed in the state records. This is prescribed under the Indian Registration Act, 1908.
What are the localities in Nizamabad where I can buy a commercial property?
Other than Vinayak Nagar and Kamareddy, there are several places where you can buy commercial property. Some of these areas include Bodhan, Kanteshwar, Mubarak Nagar, Dichpally, Subhash Nagar and Pragathi Nagar.
Does Nizamabad have rail and air connectivity?
You can find regular trains that connect other cities in the country to Nizamabad Junction. However, Nizamabad does not have an airport. The nearest airport to Nizamabad is in Hyderabad at a distance of 140 km.
Is Nizamabad safe for commercial investments?
Nizamabad is quite safe for commercial investments. It has a crime level of 25.00, which is much less than that of Hyderabad. The average crime level in Hyderabad is 42.45 according to numbeo.com.