Guide for Darbhanga Commercial Real Estate Investment

Darbhanga is one of the major districts and fifth largest city in Northern Bihar. The city has a rich legacy of art, culture and music, which is why it is also called the ‘cultural capital’ of Bihar. It has a vast alluvial plane without any hills and humid subtropical weather. All these make the place ideal for agriculture-based industries.

Darbhanga is popular for its trading of fish, mangoes and makhana. As Darbhanga has developed rapidly for the past couple of years, great investment opportunities are coming up in various locations here. 

Read on to know about the various commercial real estate investment opportunities in this city!

Top Reasons to Invest in Darbhanga Commercial Real Estate

Darbhanga is a developing city in Bihar. Here are the top reasons to invest in Darbhanga real estate.

• Transportation

Transportation in Darbhanga has developed in the last few decades. Darbhanga railway junction is connected to all the major Indian cities. One can take the daily and weekly train from Darbhanga junction to Patna, Kolkata, Delhi, Mumbai and many other big cities in India.

Two national highways, NH 57 and NH 510, and Bihar State Highways 50, 56, 75 and 80 connect Darbhanga to all the other parts of India. India’s east-west corridor expressway that connects Gujarat to Assam passes through the city.

Darbhanga airport is a domestic airport which has also been undergoing massive development. Bihar Government has planned acquisition of 24 acres of land for runway expansion, 54 acres to make a new permanent terminal and another 24 acres for the installation of an instrument landing system that will help in safe nighttime landing. 

• Industrial Development

Economically, Darbhanga is dependent on an agro-based industry. It usually produces fish, mango and makhana. Apart from paper mills, handloom sarees and sugar mills, there are plenty of small-scale industries in Darbhanga.

Commercial Real Estate Investment Opportunities in Darbhanga

Here are some locations in Darbhanga where you can go for commercial real estate investment: 

• Kathalbari

Kathalbari is a very important place in Darbhanga and has great connectivity. National highway 527E and the Darbhanga railway junction are in close proximity to this area. 

• Mirzapur

Mirzapur is one of the popular areas in Darbhanga where you can invest in commercial real estate. The location is close to Highway 527E which connects Darbhanga to Rausera. Usually, the commercial property value in Mirzapur ranges between ₹1,350 per sq. ft. to ₹86,805 per sq. ft. 

• Lalbagh

Lalbagh is another popular area in Darbhanga, Bihar. This area has two highways going through it – NH 27 and NH 527B. The popular commercial locations in Lalbagh are Kranti Chawk, Ranipur Chawk, Ambedkar Chawk and Ganj chawk.

Things to Consider Before Investing in a Commercial Property in Darbhanga

Investing in a commercial real estate property is a big deal. You should consider checking a few factors before investing in a commercial property in Darbhanga. 

• Location

Selecting a suitable location while investing in commercial real estate is really important. Choosing an ideal location for investing money depends on many factors. You need to think about the nature of the commercial activity, what type of target clients you will be getting and also transportation facilities.

• Social Infrastructure

Just like location, checking the social infrastructure of an area is important. While buying commercial real estate, check if the area has schools, colleges and universities, then you can build a shopping complex there. If the place has enough residential buildings, you can go for building gyms or hospitals or other commercial properties.

• Expert Opinion

If you are new to investing in commercial real estate, seek help from real estate experts, market experts and lawyers. This will give you a clear idea about how you can use your money and what to expect from your property. Make sure to always cross-check the information you are getting while investing.

• RERA Authentication

As per the Real Estate (Regulation and Development) Act, 2016, every property in a state should adhere to the norms of the respective state’s Real Estate Regulatory Authority (RERA). It is a statutory body whose goal is to promote transparent and reliable transactions between buyers and sellers in the real estate industry. 

Therefore, before investing in any real estate property in Darbhanga, make sure to visit the RERA Bihar website to check its authenticity. 

Stamp Duty in Darbhanga, Bihar

The stamp duty in Bihar is just as follows: 

Registration Fees in Darbhanga, Bihar

Here is the registration charge that people need to pay while buying a commercial property in Darbhanga: 

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

Darbhanga is one of the most important districts in North Bihar and is one of the oldest cities in India. Darbhanga is well connected via railways, airports and highways with all the major Indian cities. Moreover, Darbhanga airport is the only airport in Bihar that earned a profit of ₹2.10 crore in the financial year 2021-2022. This is one of the major airports in Northern Bihar. The airport is situated near the NH 105 and NH 57 highways. 

However, the stamp duties and registration charges are a bit on the higher side in Bihar. Real estate experts are looking forward to investing in this area for the long term. 

Commercial Real Estate vs Other Asset Classes

Before going ahead with any investment, it is vital to assess whether it would be the right one for you. It depends on how much money you want to invest, how much risk you are willing to take and many other factors. To help you, here are the differences between various asset classes: 

Commercial Real Estate vs Stocks and Mutual Funds

One of the major plus points of commercial real estate is that it offers consistent passive income. Although stock market and mutual funds offer higher returns than commercial real estate, the risk is exceptionally high in case of the former. However, stock and mutual fund investments require a comparatively lower quantum of investment. 

Commercial Real Estate vs Bonds

Both bonds and real estate are sources of passive income. However, bonds offer lower returns in comparison to commercial real estate. 

But when it comes to stability, bonds are a better investment option. The credit risk quotient associated with bonds is also low. 

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Commercial Real Estate vs Residential Real Estate

Most investors get tangled between commercial real estate and residential real estate. Though both are popular investment choices, choosing the right one can be confusing. Initial capital and the rate of return may significantly vary between them.

Commercial real estate offers a much higher return than residential one. The credit risk is also lower than in residential properties as the tenants are usually businesses and companies. However, residential property investments offer tax benefits if the property is availed on a home loan. 

Commercial Real Estate vs Gold

As per industry experts, real estate investment offers lucrative returns in the long term because the property value increases over time. However, you can invest in gold for both the long and short term because the price depends on various macroeconomic factors. However, real estate offers the opportunity to generate passive income which is not possible in case of gold. 

Here’s a tabular representation of comparison of the different asset classes based on various parameters: 

Steps to Invest in Commercial Real Estate in Darbhanga

Following are the steps to invest in commercial real estate in Darbhanga.

Step 1: Before investing in commercial real estate, finalise the budget first. This will help you plan your finances accordingly. 

Step 2: Choosing a proper location while buying commercial real estate is the next big thing you should think about thoroughly. Make sure to choose a location that is great in terms of infrastructure and amenities available. You can talk to industry experts and real estate dealers to analyse the location.

Step 3: Once you finalise a property, prepare the necessary documents for the purchase. 

Step 4: Complete the payment process. Make sure to pay the required stamp duty and registration charges to successfully transfer the ownership of the property to your name. 

Final Word

Darbhanga is one of the oldest cities in India that is undergoing many developments for the past few years. It is advisable to invest in commercial real estate in Darbhanga as it is now a booming commercial space as per industry experts. 

With proper flight connectivity, railways and highways, Darbhanga’s property value is expected to increase in the future. Moreover, the improvement of education, tourism, culture, railways, and aviation will enhance the economic development of the district.

Frequently Asked Question