Guide for Dhanbad Commercial Real Estate Investment
Dhanbad is the second most populated city in Jharkhand, making it an ideal place for commercial real estate investment. It is home to some of the oldest and largest coal industries in India.
The city is surrounded by 112 coal mines producing 27.5 million tonnes and generating an annual income of ₹7,000 lakh. Apart from being the ‘Coal Capital of India’, the city is also home to IIT Dhanbad. In addition to coal, there are multiple information technology (IT) companies that are setting up their base in Dhanbad.
Let us know more about the various real estate investment opportunities in Dhanbad.
Top Reasons to Invest in Dhanbad Commercial Real Estate
The reasons to invest in commercial real estate in Dhanbad are as follows:
- Low Property Rates
The commercial property rates in Dhanbad are much lower and affordable when compared to other industrial cities, making it an ideal place for investment.
- Improved Connectivity
Dhanbad has better connectivity which is improving every year than any other place in Jharkhand. As a commercial hub for coal industries, Dhanbad aims to provide easy and accessible transport routes to daily office-goers/commuters.
Commercial Real Estate Investment Opportunities in Dhanbad
The locations offering the best opportunities to invest in Dhanbad are as follows:
- Ashok Nagar
This is a central location with several corporate hubs, especially in sector 2. Moreover, being in the center , it provides easy accessibility to any part of Dhanbad.
- Bank More
This locality in Dhanbad is very near to the railway station and other important roads providing better connectivity to daily office-goers/commuters.
Things to Consider Before Buying a Commercial Property in Dhanbad
The main things to consider before buying a commercial real estate property in Dhanbad are as follows:
- Check Authenticity through RERA
The Real Estate Regulatory Authority (RERA) is a legal body formed by the Government under the RERA Act of 2016. Its main aim is to promote transparency and accountability between real estate agents and buyers.
As per the regulations, all builders and developers in Dhanbad should register themselves on the RERA portal of Jharkhand. You can use this platform and analyze the authenticity of the builders and the properties.
- Location and Neighbourhood
The location and surrounding neighborhood are important factors when it comes to choosing an ideal commercial property. Usually, commercial properties located in the city’s center will attract lucrative returns for you.
Stamp Duty in Dhanbad, Jharkhand
The stamp duty rates for commercial property sales in Dhanbad are in the following table:
|Gender||Stamp Duty Rates|
|Joint (Male + Female)||4%|
|Joint (Male + Male)||4%|
|Joint (Female + Female)||4%|
Registration Charges in Dhanbad, Jharkhand
The property registration charges in Dhanbad, Jharkhand are:
|Joint (Male + Female)||3%|
|Joint (Male + Male)||3%|
|Joint (Female + Female)||3%|
Dhanbad Commercial Real Estate Sector: What’s the Forecast?
Owing to the developing industrialization in Jharkhand, the property rates in Dhanbad have been increasing in FY2022-23. For instance, the property rates in Dhaiya of Dhanbad have increased by 9.35% in 2022 when compared to 2021.
Additionally, numerous branded companies, banks, and insurance offices have set up their offices here in the last few years. It has also seen the construction of about 20 lakh square feet of coal mines in recent years. All these factors improve the future growth prospect of Dhanbad’s commercial space.
Commercial Real Estate vs Other Asset Classes
The difference between commercial real estate and other asset classes are as follows:
- Commercial Real Estate vs Stocks & Mutual Funds
The commercial real estate industry is less volatile in comparison to stocks and mutual funds. Moreover, stock markets witness higher fluctuations than commercial property, making it difficult to assess the projected returns.
- Commercial Real Estate vs Gold
Gold offers better liquidity as it can easily be converted to liquid money, which is impossible in real estate. However, gold prices can highly fluctuate when compared to commercial real estate.
- Commercial Real Estate vs Residential Real estate
Residential real estate suffers a lack of demand compared to commercial real estate, especially in the premium category. Moreover, it has comparatively lower rental prospects than commercial spaces.
- Commercial Real Estate vs Bonds
Bonds have a low credit risk when compared to commercial real estate. Additionally, commercial property investment is less liquid than bonds because of higher transaction costs, and it can take a long time to find a suitable buyer for the property.
A tabular representation to compare the assets based on returns, liquidity, risk, volatility, and the ticket price is as follows:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
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Steps to Invest in Commercial Real Estate of Dhanbad
The steps to invest in commercial real estate in Dhanbad are as follows:
Step 1: Finalise your budget.
Step 2: Carry out proper market research on the available commercial sites.
Step 3: Shortlist affordable sites that meet your business requirements.
Step 4: Go on a field visit and analyze each aspect of the sites minutely. Make sure to assess the location in terms of connectivity, infrastructure, and hygiene.
Step 5: Once you finalize a commercial property, prepare the official documents for purchasing it.
Step 6: Complete payment of stamp duty and registration charges.
Step 7: Pay service fees to real estate brokers and consultants if you availed of their services.
The outlook of Dhanbad for commercial real estate is quite promising due to its growing economy and infrastructure. Moreover, being the second largest populated city of Jharkhand, it is an ideal place to establish commercial office spaces. However, if you plan to invest here, make sure to conduct thorough market research or consult a real estate agent.
Frequently Asked Questions
Is it better to buy a commercial or a residential property in Dhanbad?
It is better to buy a commercial property in Dhanbad as there is more scope for industrial development. Coal-related companies like Tata Steel, IISCO, and BCCL have coal mines in this region, which make it a primary commercial hub in Eastern India.
What are some of the popular commercial real estate locations in Dhanbad?
Some popular places for commercial real estate investment in Dhanbad are Ashok Nagar, Bank More, Dhaiya, Hirak Road, Gobindpur, Hirapur, and Saraidhela.
Is it possible to pay stamp duty and registration charges online in Dhanbad?
Yes, you can pay both stamp duty and property registration charges online in Dhanbad and other parts of Jharkhand. All you need to do is go to the official website of the e-Nibandhan portal and make the payment by selecting the “e-stamp online payment” option.
What are the factors considered for calculating stamp duty?
The stamp duty on the purchase of a property is based on the circle rate or the property’s purchase value, whichever is higher. You need to pay the applicable stamp duty charges as per your state.