Guide for Cuttack Commercial Real Estate Investment￼
Cuttack is the former capital of Odisha and is known for its heritage, forts and culture. It is also the birthplace of Netaji Subhash Chandra Bose, the brave freedom fighter.
Cuttack is globally renowned for its popular silver craft called Tarakashi. It is a 500-year-old craft still prevailing in the streets of Cuttack and is adapted widely in the local culture through dance and dramas. The market of silver craft attached to such old heritage also creates good business for the city.
Agriculture is the primary economic activity for people in Odisha and Cuttack is no exception. Crops such as rice, jute, sugarcane, oilseeds and coconut contribute majorly to the city’s economy. Rubber and prawns cultivation has found significance in recent years.
As such, Cuttack is the highest contributor to the state’s GDP and is rightfully known for its commercial market. There are many medium-scale engineering industries in this city that draw many businesses to Cuttack. These industries create a high demand for commercial properties in Cuttack.
If you want to invest in commercial real estate in Cuttack, then read the best investment opportunities in this city below.
Top Reasons to Invest in Cuttack Real Estate
Cuttack is one of the busiest cities in Odisha and offers excellent opportunities for commercial investments. Some reasons to invest in commercial properties here are:
- Commercial Capital
Cuttack is the commercial capital of Odisha. It is the second largest city in the state after Odisha’s capital, Bhubaneswar. Most of the state’s industrial output is based out of Cuttack with native industries like textile and silverware.
In addition, Cuttack also houses more than 11 large-scale industries like steel, automobile, metal, and alloy. It annually generates more than a billion dollars of revenue in the textile trade.
- Culture Rich City
Cuttack is the epicentre of Oriya culture. It is home to several state dance, drama and film productions. Its traditional silverware and textile work is a major contributor to its cultural diversity. This cultural industry generates good demand and trade in the city.
- Source of Secondary Income
Owing a commercial property in Cuttack will be a steady source of passive income for you. In addition, it is a developing city with municipal jurisdiction that will attract fast expansion in the coming years.
- High Returns
Cuttack’s commercial market is growing rapidly, affecting property valuation positively. Therefore, investing in Cuttack’s commercial real estate will get you good returns.
Commercial Real Estate Investment Opportunities in Cuttack
The following are some prime locations in Cuttack to purchase commercial real estate:
This area in Cuttack is a growing locality with good connectivity with the rest of the city. It has access to the ESI Hospital and the Kapilas Road Junction railway station. The average property value in Nakhara is around ₹50 lakh.
This is another prime location for upcoming commercial real estate investments in Cuttack. It is well-connected to the rest of Cuttack and has a decent infrastructure. The average value of commercial properties in Jagatpur is ₹50 lakh approximately.
Trisulia in Cuttack is a good option for commercial real estate investment. It has good infrastructure and competitive property rates. It is one of the fastest-growing areas in Cuttack. The average price for property in Trisulia is ₹50 lakh.
Things to Consider before Buying a Commercial Property in Cuttack
Before investing your wealth in a commercial real estate property, consider the following points:
Location is a very important factor in determining your return on investment (ROI) from real estate. Invest in a property located in a developing area with a comparatively lower valuation present. The valuation of such a location will multiply rapidly in the near future compared to other areas. Hence, it will be in high demand and give you high returns.
On the other hand, properties at prime locations currently have an established value and demand; thus, they are also a good option for investments.
- Builder’s Reputation
The reputation and quality of a builder are important factors that decide the value of your commercial real estate investment. Doing business with a reputable builder assures the quality of your property. In addition, a good builder increases the brand value of your property in the future.
It is crucial to buy a commercial property with the best connectivity. Access to railways, roadways and airports offers high demand for your commercial property.
- Lease Structure
Before you finalise your contract, check and verify all details on your lease agreement to avoid miscommunication. In addition, it is important to include all requirements in your financial planning.
Under the requirement of the Real Estate Regulatory Authority Act 2016, all states require builders, brokers and properties to be registered under their governing bodies, Real Estate Regulatory Authority (RERA). Hence verify the details from the official website of RERA Odisha before buying a commercial property in Cuttack.
Stamp Duty in Cuttack
Stamp Duty charges for different documentation in Cuttack are given below.
|Type of Document||Stamp Duty Charges|
|Sale Deed||5% of the final consideration|
|Lease upto 5 years||2% of the final consideration|
|Lease above 5 years||5% of the final consideration|
|Power of Attorney||₹100|
|Mortgage||2% of the loan amount|
|Re-conveyance of Mortgage||₹50|
Registration Charges in Cuttack
Registration charges on commercial real estate properties in Cuttack are given below.
|Type of Document||Registration Charges|
|Sale Deed||2% of the final consideration|
|Sale Agreement||2% of the agreement value|
|Lease upto 5 years||2% of the final consideration|
|Lease above 5 years||2% of the final consideration|
|Partnership||2% of capital value|
|Power of Attorney||₹250|
|Mortgage||2% of the loan amount|
|Re-conveyance of Mortgage||2% of the loan amount (0.5% of the loan amount for agricultural loans.|
Cuttack Commercial Real Estate Sector: What’s the Forecast?
Cuttack is the former capital of Odisha and also its judicial city. In addition, it is also called the millennial city due to its age-old heritage and architecture related to Indian h. Besides being a strong commercial city, it is also rich in tourism.
Important rivers like Kathajodi and Mahanadi surround the city. This allows it to develop water irrigation, sewage systems and water supply infrastructure. As a result, agriculture and associated activities keep contributing to the city’s economy.
In addition, its geographic position also connects it to important cities like Kolkata, Jaipur, and Puri, via NH-55 (previously NH-42) and NH-5. Being close to Bhubaneswar will also provide access to educational institutes in nearby cities.
The Odisha Government is investing majorly in the real estate sector in cities like Cuttack, Bhubaneswar and Puri. Under the Odisha Housing for All Policy, 2022 has been launched by the State Government. Investments amounting to ₹58,502.55 crore have been made for this project.
As real estate development picks up pace in Cuttack, it will create massive demand for retail businesses and warehouses. Hence, investors in commercial real estate in Cuttack will have ample opportunities for profits.
Commercial Real Estate vs Other Asset Classes
Investing your wealth into real estate and other assets has pros and cons. To better understand all the features refer to the comparisons given below.
- Commercial Real Estate vs Stocks and Mutual Funds
Commercial real estate investments can earn moderately high returns for comparatively lower risks. In contrast, stocks and mutual fund investments earn much higher returns but they are subject to very high risks. This makes stock markets suitable for knowledgeable investors.
- Commercial Real Estate vs Residential Real estate
Commercial real estate offers higher returns compared to residential real estate. As commercial properties have higher demand and costs, they can earn higher rental gains. Both these investments carry similar risks and liquidity. However, residential real estate has slightly lower risks than commercial real estate.
- Commercial Real Estate vs Bonds
Bonds are assets that offer fixed interest on the principal amount for a pre-decided period. These are low-risk assets that offer low-moderate returns at low-moderate risks. Commercial real estate offers high returns at comparatively lower risks to investors.
If you want to invest in bonds with good returns, check out our list of top-rated bonds on our homepage.
- Commercial Real Estate vs Gold
Gold investments are safe options with moderate returns. However, gold appreciates over a long period and at a low rate. On the other hand, commercial real estate offers high returns at a faster pace for high-value tangible assets. As a result, an initial investment in gold is moderately lower than in commercial real estate.
A comparative table of the above assets based on returns, liquidity, risk, volatility and ticket price is given below.
|Parameters||Commercial Real Estate||Stocks and Mutual Funds||Residential Real Estate||Bonds||Gold|
Steps to Invest in Commercial Real Estate in Cuttack
Follow the steps mentioned below to buy a commercial property in Cuttack.
Step 1: Decide on a budget for your property.
Step 2: Do a market survey and understand market trends based on your requirements.
Step 3: Shortlist a few properties based on your market research.
Step 4: Visit all the shortlisted properties and check the amenities offered by your broker.
Step 5: Finalise a property that best suits your needs.
Step 6: Verify the property details from the RERA website. Check the authenticity of the documents provided by the seller.
Step 7: Make payments for your property and registration and stamp duty charges.
Step 8: Pay the service charges to your broker and opt for an effective insurance plan to safeguard your property.
Cuttack is one of the most developed cities in Odisha. It is a busy city with good connectivity to the rest of the state and the country. Its commercial industries promote infrastructure development in the city and quality of life. In the near future, this city will be a prime location for business and real estate. Hence, it is a good idea to invest in commercial real estate here.
Frequently Asked Questions
How many zones are there in the Cuttack District?
Cuttack district is divided into 3 zones: Cuttack, Athagarh and Banki. Cuttack city is the most advanced area in Cuttack district and also the headquarters of this district.
Is Cuttack a smart city?
Technically, Cuttack is not a smart city in India under the 100 smart cities list. However, the state government has suggested its name and 4 other cities be considered under the smart cities mission. Nonetheless, Cuttack is a developed city with good infrastructure and business.
Which languages are spoken in Cuttack?
Kataki, Oria, Bangla, Hindi and English are spoken in Cuttack, among other languages. Kataki is a local Odia dialect mostly spoken in Cuttack.
What is the literacy rate of Cuttack?
The literacy rate of Cuttack is 85.50%. It is among the top 5 cities in terms of literacy.