Guide for Dombivli Commercial Real Estate Investment

8 min read • Published 9 November 2022
Written by Anshul Gupta
Commercial Real Estate Investment in Dombivli

Dombivli is an emerging sector for the real estate market with a high return on all types of commercial property investments. Moreover, its proximity to Thane, Mumbai, and other emerging locations keeps it in high demand for real estate development. 

Popular business units from finance and IT sectors like MphasiS and Omega are opting for spaces in Dombivli. There’s also a rising residential population due to the massive influx of working professionals which has led to an increase in demand for commercial spaces like supermarkets, malls, etc. 

Let’s see how investing in commercial real estate in Dombivali can be beneficial for you.  

Top Reasons to Invest in Dombivli Real Estate

The following factors make Dombivli a good real estate investment spot.

  • Business Hubs

Dombivli in Maharashtra is part of the Mumbai Metropolitan Region (MMR) and is an upcoming hub for multiple businesses. Numerous IT companies, Finance brands, and chemical manufacturers are setting up their business in Dombivli and adjoining areas. This is a significant boost for commercial spaces in this area.

  • High Returns

This area within Mumbai and Thane has recently provided the highest returns from commercial properties compared to other areas in Mumbai. This scale will expand more in the future, making this an excellent opportunity to invest in Dombivli commercial spaces.

  • Infrastructure Growth

As Dombivli is part of Mumbai MMR, the infrastructure growth in the entire area offers a promising market for commercial properties. Future infrastructure development in this area includes better connectivity and expansion of several industries.

  • Demand

As businesses are swarming this sector, it will be in popular demand for multiple commercial spaces. In addition, commercial spaces will be in high demand due to space crunch and other related factors in the future. Hence, it is a good investment at this moment.

  • Secondary Income Flow

Office spaces, warehouses, and retail spaces in Dombivli offer good rental income to commercial real estate investors. Hence, it is one of the primary reasons to invest in this area.

Commercial Real Estate Investment Opportunities in Dombivli

Dombivli is one of the fastest-growing  areas around Mumbai and Thane. Here are the promising locations for commercial real estate investment.

  • East Dombivli

This area is one of the fastest-growing places in MMR and is in popular demand for office and residential spaces. Hence, there is a high rental yield opportunity in this area. 

  • West Dombivli

Good connectivity and well-planned infrastructure make this part of the city a promising investment opportunity for commercial spaces. Moreover, some of the most significant projects are in progress. Hence, it is a good investment for future returns.

Things To Consider Before Buying a Commercial Property in Dombivli

Before purchasing a commercial property in Dombivli, consider the following factors.

  • Property Developer’s Background

Commercial real estate investment is a large-scale investment; hence, it is important to verify the credibility of a builder before doing business. This reduces the scope of fraud or malpractice. In addition, purchasing a property from a reputed builder also offers a better chance of an increase in value.

  • Connectivity

You should select a property with good connectivity with other locations in the city. Proper access to different modes of transport and accessible roads increases demand for property.

  • Contract Formalities

Before investing in a commercial property, validate all the purchase or lease agreement clauses to understand if it’s a good deal for you. Make sure to read the fine print. 

  • Budget vs Property Value

Do a market survey and understand if the property value is per market rate. In addition, identify your budget and select properties within your budget. Finally, for better future gain, look for under-valued properties with a high potential for growth in the future. This might give you a very high return on investment.

  • RERA Validity

The Real Estate Regulatory Authority (RERA) India was formed after the establishment of the Real Estate Regulatory Authority Act 2016. It is a statutory body that aims to bring transparency to real estate activities all around the country. Each state has its own regulatory authority and the builders in the state must abide by its norms. 

You can validate all information related to your commercial property from the official website of RERA Maharashtra.

Stamp Duty in Dombivli, Maharashtra

Stamp duty charges in Dombivli are listed in the table below.

GenderStamp Duty Rates
Male + Joint (Male and Female) + (Male + Male)7% (5% stamp duty + 1% tax [local body] + 1% metro cess.
Female + Joint (female + female)6% (4% stamp duty + 1% tax [local body] + 1% metro cess.

Also Read: Guide for Ranchi Commercial Real Estate Investment

Registration Charges in Dombivli, Maharashtra

Dombivli registration charges for commercial properties are as follows.

Property ValueRegistration Charges
For properties above ₹ 30 lakh₹30,000
For properties below ₹ 30 lakh1% of property value

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

The Dombivli sector has been rising rapidly in recent years and is recognized  as a premium office space. As a result, demand for commercial spaces for business setup is high, which is promising for real estate investment.

Several localities are also developing around Dombivli with parallel rising demand for retail spaces and warehouses. As a result, infrastructure development in the whole MMR is rising widely, with multiple projects predicted to be ready in a decade. 

With all aspects expanding at an exceptionally fast pace, Dombivli is looking forward to a good market for commercial real estate in the upcoming years. 

Also Read: Guide for Dhanbad Commercial Real Estate Investment

Commercial Real Estate vs Other Asset Classes

  • Commercial Real Estate vs Stocks & Mutual Funds

Commercial properties are investments that generate high returns, just like stocks and mutual funds. However, in stocks, the volatility and risk of loss are very high compared to commercial real estate. In addition, commercial properties are costly investments, whereas you can invest in mutual funds with a very low initial amount.

  • Commercial Real Estate vs Gold

Both commercial properties and gold are stable assets that  appreciate over the long term. However, commercial properties multiply much faster and offer much higher returns. However, gold has easy liquidity, which is not the case for commercial properties.

  • Commercial Real Estate vs Residential Real estate

Residential properties don’t have popular demand like commercial properties. In addition, commercial properties generate passive income from tenants who are mostly businesses, unlike residential properties. Commercial properties also offer higher returns than residential real estate investments in the long run.

  • Commercial Real Estate vs Bonds

Bonds are short to medium-term assets that generate slow but steady income. Commercial properties have higher returns, but initial investments for bonds are much lower than commercial real estate. In addition, bonds are easier to liquidate and possess moderate risks.

All the assets based on returns, liquidity, risk, volatility, and ticket price have been compared below.

ParametersCommercial Real EstateStocks and Mutual FundsGoldResidential Real estateBonds
Returns High High Moderate ModerateModerate
Liquidity LowHighHighLowModerate
Risk LowHighLowLowModerate
Volatility LowHigh ModerateLowLow
Ticket SizeHigh Varies Low High Varies 

If you are planning to invest in bonds that provide fixed income at low risk, explore more on our website. Register now and start investing at no additional costs and hidden charges

Steps to Invest in Commercial Real Estate in Dombivli

To invest in commercial real estate in Dombivli, follow the steps mentioned below.

Step 1: Conduct market research and select a list of properties based on your budget.

Step 2: Visit all shortlisted properties and find the right fit for you.

Step 3: Verify details of the property and builder from official sources.

Step 4: Arrange and submit all necessary documents as per government requirements.

Step 5: Complete the registration formalities and make the necessary payments. 

Final Word

Dombivli is one of the most luxurious locations in the city of Mumbai, with fast-growing business hubs across multiple sectors. As a result, future commercial real estate investment returns in this area are predicted to be higher than in other areas. Therefore, if you are looking to invest in this city, it would most probably be a wise decision.

Frequently Asked Questions

What are the risks of the real estate business?

Real estate business can be highly rewarding for investors; however, there are also certain risks you should be careful about:

Liquidity Risk
Rent Default Risk
Financial Risk
Regulation Risks

Why is commercial real estate better than residential real estate?

Commercial properties offer exceptionally high returns compared to residential spaces. In addition, commercial spaces are in demand, making it easier to earn returns, which is a challenge in residential properties.

Why is infrastructure development important for commercial real estate?

Commercial real estate investments depend on the demand for space. Businesses and individuals prefer areas with good infrastructure to do their business; hence, it is important for commercial real estate market development.

Can I get tax benefits on commercial properties?

You can claim a tax deduction at a flat rate of 30% on business loans taken for commercial real estate investment. In that context, it is possible to get tax benefits on commercial properties.

Was this helpful?

Anshul Gupta

Co-Founder
IIT Roorkee Alumnus and CFA with experience of structuring debt products worth more than 15000Cr for institutional and retail investors.

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