Commercial Real Estate Investment in Tanjore

Tanjore (presently Thanjavur) is a city located in the eastern part of the Indian state of Tamil Nadu, popularly known as the city of temples. This region also has agricultural importance as it is situated in the Kaveri Delta and is also known as “The Rice Bowl of Tamil Nadu”. People from different parts visit this place to witness its distinctive style of Painting, which involves paintings made up of gold foil, lace, semi-precious stones etc.

Major industries in this region include cotton milling factories, traditional handloom weaving, grains processing and manufacturing of stringed musical instruments namely ‘Veenas.’ The Government of Tamil Nadu is likely to constitute a regional planning authority in the interest of business owners.

The newly proposed plan will help plan ahead the development and proper utilisation of land of 1.36 lakh square km by constituting regional planning and urban development authorities. The 12 regions that are identified include Tanjore (Presently Thanjavur), Tiruvarur, Nagapattinam, Chennai Metropolitan area etc. If you are planning to invest in a commercial property in Tanjore, keep reading these details below to understand the real estate market scenario in this region.

Top Reasons to Invest in Tanjore Real Estate

A few reasons to invest in a commercial property in Tanjore are listed below.

• Tourism

Tanjore is one of the most prominent tourist attractions in the southernmost part of the country. Tanjore enjoys a rich historical heritage and plays an important role in moulding the ancient as well as the modern south Indian civilisation. 

As it was once the capital of the Chola Empire, the majority of Great living Chola temples are present within or around this region. Some of the prominent attractions include the Brihadishwara Chola temple, and the Vijayanagar Fort, which was designated as a UNESCO World Heritage site.

It is the 11th biggest city in the Indian state of Tamil Nadu, famous for its rich culture, architecture and its distinctive style in Painting, paintings made up of gold foil, lace, semi-precious stones etc.

• Transport Connectivity

This region has a well-developed connectivity of transport facilities by road, rail and air with most of the cities. Tanjore is well connected with prominent cities of the south like Chennai, Coimbatore, Bengaluru, Trivandrum etc., through regular bus services. Some of the national highways that connect Tanjore include NH-67, NH-212, NH-45C etc. 

It is connected to important cities via railways, Thanjavur junction railway station is the major railway station. This district has 122 km broad gauge railway lines with 20 stations connecting Tanjore to major areas of the state. Tiruchirapalli International Airport is the nearest international airport, which is around 50 km from this city.

• Smart City

Tanjore is declared a smart city by the Ministry of Urban Development. As the city is of historic importance and culturally enriched, the vision for the smart city emphasises enhancing the identity of this city as the “Cultural Capital of Tamil Nadu”. 

The main focus is to drive economic growth and improve the overall living standard of people by developing the local areas and by harnessing technology, especially those that derive smart outcomes including the transformation of slum areas into better ones.

• Occupation

Occupation of the majority of the population in this city is tourism and service-oriented industry. There is also a presence of Medium and small-scale industries like cotton milling factories, traditional handloom weaving, grains processing and manufacturing of traditional musical instruments. 

However, the traditional occupation is agriculture. Farmers here are gradually adopting organic farming in order to maximise the quantity of production. 

Commercial Real Estate Investment Opportunities in Tanjore

Tanjore is a prime location for commercial real estate investments. The localities mentioned below are among the best areas in this city. You can consider investing in these localities for a higher Return on Investment (ROI).

• Kumbakonam

Kubakonam is a locality lying within the Thanjavur district (formerly Tanjore) which is well connected by a network of road and rail. The national highway 36 connects localities of Vikravandi – Manamadurai passes via Kumbakonam. 

Tiruchirappalli International Airport is the nearest airport which is 50 km from this region. Kumbakonam is considered to be the chief commercial centre in the entire Tanjore region. Prices of properties in this region range from ₹25 lakhs to ₹2 crores on average.

• RR Nagar

RR Nagar is a small locality in Thanjavur district connected by several highways like NH38, NH36, and NH83. The nearest railway station connecting the area is Thanjavur Junction Railway Station and Alakkudi Railway Station. 

Prominent hospitals and medical institutes like Siva Preethi Hospital, KSDC hospital, and Thanjavur Cancer Hospital are present here. Completing and fulfilling the needs of the people, making it an ideal place for commercial Investment. Prices of the property in this region range from ₹30 lakhs to ₹3 Crore.

Things to Consider Before Buying a Commercial Property in Tanjore

While investing in a commercial property in Tanjore, you need to consider several points that can improve your scope of returns. Ensure to check these below factors before purchasing commercial real estate in Tanjore.

• Builder’s Reputation

It is important to conduct research on the reputation of the builder; you can easily check the same on the RERA Portal of Tamil Nadu. People rely on the goodwill of an experienced builder to select a real-estate space. Hence, the marketability of commercial property is directly impacted by the reputation of a builder, therefore consider this factor seriously.

• Infrastructural Development

While looking for a commercial real estate investment consider finding urbanised infrastructure with modern amenities. If you invest in a commercial property that has essential facilities like electric supply, water, transportation, etc., within the immediate vicinity, it will play a key role among other businesses. Hence, before purchasing a property, consider the development of infrastructure in the adjacent areas.

• Transportation Network

Transport connectivity is an important factor to consider while choosing a property. It should have good connectivity via road, airports, and railway. This is one of the most important factors people look for in commercial spaces. Therefore you need to choose a locality that has good connectivity and a network of public transport.

• RERA Verification

The Real Estate (Regulation and Development) Act abbreviated as RERA, is a statutory body formed in every state and Union territory under the Real Estate Regulatory Authority, 2016. These were established to bring transparency and accountability to the real estate industry.

According to it, each and every builder or broker should register themselves on the RERA platform of their respective state. Therefore all the commercial real estate properties in Tanjore should be registered on the RERA portal of Tamil Nadu.

Stamp Duty charges in Tanjore

Following are different stamp duty charges for both males and females:

Registration Charges in Tanjore

It is recommended to consider all additional costs before calculating the final investment amount for your commercial real estate. The registration charges applicable for males & females in Tanjore are given below.

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

The government of Tamil Nadu has proposed several major development projects in the years to come which include the development of Thiruvalluvar Theatre into a commercial complex, the installation of a 3MW solar power plant, etc. There will also be an improvement of water supply and sewerage, integrated command and control centre development of convention centre, smart roads and many more. 

While our Indian government has launched a Smart City Mission which is a flagship initiative under which 100 cities will be developed in different parts of the country, out of the 100 cities Tanjore is shortlisted and will enjoy the centrally sponsored scheme. This is in collaboration with the government of this state.

Some of the core infrastructure elements in a smart city include robust IT connectivity and digitalization, sanitation with solid waste management, efficient urban mobility and public transport, adequate water & electricity supply, affordable housing for the poor and many more. These together make this place ideal for a commercial real estate investment. It is estimated that the real estate here will Skyrocket.

Commercial Real Estate vs Other Asset Classes

In addition to commercial real estate investment, there are various other investment options available in several asset classes like stocks, bonds, mutual funds, debentures, gold etc. However, each asset class comes with its own set of features and risks; hence, this information might help you in figuring out the most suitable investment option.

Commercial Real Estate vs Bonds

Return on investment (ROI) in a commercial real estate investment is comparatively higher than in bonds. Bonds provide moderate returns at low risks for investors. It is a good option to invest your excess funds for a temporary period to earn fixed interest. Unlike bonds, real estate investments are involved with credit risks i.e. the rental income generated from these commercial properties depends on the payment behaviour of tenants.

If you want to invest your capital in high-rated bonds, register on our website. It will allow you to buy high-rate bonds at no hidden cost.

Commercial Real Estate vs Gold

The Return on Investment (ROI) generated through a commercial real estate investment is much higher than gold. However, gold is considered by people for both short-term and long-term investment. Also, liquidity is higher in gold. Usually, it is hard to sell real estate investments as the buyers and sellers are not easily available.

Commercial Real Estate vs Stocks and Mutual Funds

On average, returns from commercial real estate investments are lower than from the stock market. In terms of volatility, the real estate industry is less volatile whereas the stocks of companies are highly volatile in nature. 

Price fluctuations observed in a share market are also quite high. As a result, returns from investments in shares and the mutual fund also fluctuate. Thus, for a reduced-risk investment option consider real estate.

Commercial Real Estate vs Residential Real estate

Residential real estate investments offer comparatively lower returns than commercial real estate. However, it also carries less paperwork in comparison to commercial properties. On the other hand, commercial properties have higher demand in the market and offer more opportunities for additional income. This is mainly because of the fact that commercial tenants are easily available as compared to residential ones.

Listed below is a comparison between commercial real estate and the other assets mentioned above, based on returns, liquidity, risk, volatility, and ticket price.

Steps to Invest in Commercial Real Estate in Tanjore

You can follow these simple steps given below to apply, find and purchase a commercial property in Tanjore.

Step 1: Firstly you should try to find a well-reputed broker to help you find a property to invest in Tanjore. Experienced brokers can help you choose the best properties.

Step 2: Secondly try to frame and fix a budget for your real estate investment. It will help you narrow down your search process.

Step 3: You need to carry out research to figure out and understand the current real estate market trends in the city.

Step 4: You have to shortlist the most desirable property and conduct an onsite inspection of the same. To perform a quality check and get practical experience. Also, take the assistance of a real estate agent or broker who can provide you with some practical insights regarding the target property.

Step 5: After conducting an onsite verification of your target property, finalise your purchase.

Step 6: Be mindful of checking the authenticity of the property and builder in the RERA portal to prevent yourself from falling into fraudulent malpractices.

Step 7: You should keep all your required documents handy and avail legal assistance whenever necessary to proceed through the documentation to avoid discrepancies or any sort of loopholes in the contract. 

Step 8: Finalise and complete the payments for your property and pay a commission to your real estate agent or brokers if you have availed their services.

Step 9: Post completion of your payment, go through the registration process and complete all the formalities associated with it.

Step 10: Lastly and most importantly, get your property insured to hedge against the possible risks associated. It will avoid any massive financial loss.

Final Word

Tanjore is one of the most developed cities in Tamil Nadu. This city is considered to be one of the important centres for South Indian religion, art and architecture. It is also famous for its distinctive style of Painting, which involves paintings made up of gold foil, lace, semi-precious stones etc. 

This region is already a smart city. Furthermore, the central government is also proposing several urban development plans which will ultimately boost the economy of the region. So it acts as a lucrative option for commercial real estate investment.

Frequently Asked Questions