Guide for Gajuwaka Commercial Real Estate Investment

Located in the southern region of Vishakhapatnam in the state of Andhra Pradesh, Gajuwaka is a peaceful suburb in a serene locality. This area of Vishakhapatnam is rightly known as one of the biggest “shopping districts” in Andhra Pradesh. Though it is primarily a residential area, it is surrounded by many industries. 

This well-developed industrial cum residential area is well-connected with other parts of the state via road and railways. SH 157 and NH 16 are some prominent roads that connect it to the different parts of the state. Gangavaram port is located approximately 11 km away from this place. The nearest railway station is the Duvvada railway station, located at a distance of 7 km from this place.

Thus, the area is home to many shops and established social infrastructure. Its proximity to industries attracts commercial property investors to Gajuwaka. If you are planning to invest in commercial real estate in this area, then read on. 

Top Reasons to Invest in Gajuwaka Commercial Real Estate Investment

Here we have discussed some reasons why purchasing a commercial real estate property in Gajuwaka will be considered a profitable investment: 

• Industrial Development

Some major industries located in close proximity to Gajuwaka are Vishakhapatnam Steel Plant, Altop Industries Limited, Hindustan Petroleum Corporation Limited, Royal Metal Industries, Deepa Engineering Industries, Kheteswar Metal Industries, etc. Thus, the industrial cluster at Gajuwaka contributes majorly to the economic growth of the city as well as the state.

• Employment Hub

As mentioned, Gajuwaka is home to many thriving businesses and along with this, there are many information technology (IT) parks located nearby. Some of the important IT parks are Software Technology Parks of India (8 km) and Royal IT Park Pvt. Ltd (1 km). All these have led to significant growth in the commercial real estate sector in and around Gajuwaka.

• Transport and Communication

NH 5 is one of the major national highways connecting Gajuwaka to some of the major areas located nearby. Apart from this, it is also well-linked via SH 157 and NH 16. Just about 8 km away from this location is the Vishakhapatnam International Airport. Also, there are two railway stations located in close proximity to this area. These are Gopalapatnam railway station (11 km) and Duvvada railway station.

• Shopping Hub

This area is home to many shops, which include utensils, jewellery, and apparels store in its vicinity. Some prominent shopping malls situated within a radius of 2-6 km are South India Shopping Mall, Lucky Shopping Mall, CMR Shopping Mall, BR Shopping Mall, etc.

All of these factors make Gajuwaka an alluring location for commercial real estate investment.

Commercial Real Estate Investment Opportunities in Gajuwaka

Some hot-spot localities in and around Gajuwaka that are promising enough for commercial real estate investment include the following:

• Dwaraka Nagar

Situated in the Vishakhapatnam city of Andhra Pradesh, Dwaraka Nagar is a huge locality that shares its borders with nearby areas like Madhuranagar, Ganesh Nagar, Santhi Puram, Resapuvanipalem and Dondaparithy. 

Several working professionals reside in this part of the city because of the presence of several industries in and around this area. Some of which include Mitsubishi Heavy Industries Limited, Sri Satya Sai Allied Industries, Ceasefire Industries Limited, GS Industries, Novopan Industries Limited, etc.

The price of a property on average will cost about ₹6,367 per sqft.

• MVP Colony

Situated approximately 20.3 km from Gajuwaka, this developing locality has a plethora of employment hubs. Some prominent private companies that are providing employment opportunities in the nearby IT sector include Prospecta Technologies India Private Limited, Dhunis Technologies Pvt. Ltd, The Verticals, iCentris Software Development Pvt. Ltd. Apart from that, there are several government offices located in this location.

On average, the price of properties in MVP Colony costs around ₹7,237 per sqft.

Things to Consider Before Buying a Commercial Property in Gajuwaka

Before investing your hard-earned money in purchasing any commercial property in Gajuwaka, here are a few things that you must consider.

• RERA Authentication

One of the most considerable factors to check before opting for a commercial property is to check whether the property is RERA-registered or not. Authorities have made it mandatory for builders to carry out the RERA registration of their properties for maintaining transparency and avoiding property fraud or delays.

So, visit the AP RERA website for checking the authenticity of your property before purchasing.

• Location of the Property

The location and infrastructure of the property also matter when it comes to owning any property. You must look for a property that is situated in a prime location as its value will gradually increase with time. Also, the property should be well equipped with basic amenities as it would increase its value over time. 

• Builder’s Credibility

You must inspect whether the builder of the property is credible or not before investing in it. If the builder is credible then they will not use any low-quality materials in construction. Instead, they will use high-quality materials which will sustain them for a longer period of time.

So, you must consider these factors while opting for a commercial property in Gajuwaka.

Stamp Duty in Gajuwaka

The stamp duty charges in Gajuwaka are the same for both males and females. Have a look at the table given below: 

Registration Charges in Gajuwaka

A property buyer in Gajuwaka has to pay the following registration charges as per discussed here in the table: 

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

Keys Select by Lemon Tree Hotels is under construction at Gajuwaka and it is going to be operational by March 2023. This commercial property will feature about 44 well-appointed rooms, complemented by a fitness centre, a conference room, and a multi-cuisine restaurant. This will enhance the entire social infrastructure of the locality, further improving its financial prospects. 

Also, a proposal was passed regarding the construction of an alternative road from Gangavaram Port to NH-16. This project is underway. In order to facilitate easier commutation, Gajuwaka is expecting to get its own shelter for buses and RTC bus stop.

Not just that, for improving the area’s connectivity with Maddilapalem and Kommadi, a dedicated station on Metro’s Line 1 was created. All these infrastructural developments around the area have helped to establish Gajuwaka as a promising destination for commercial real estate developments. 

Commercial Real Estate vs Other Asset Classes

Here we have presented a comparison of commercial real estate with all other asset classes: 

• Commercial Real Estate vs Residential Real Estate 

Though both commercial and residential properties are good investment opportunities, the demand for commercial real estate has been gradually rising, while that of residential properties remains stagnant. Also, commercial real estate properties yield higher rental returns than that residential properties but require a little higher quantum of investment.

• Commercial Real Estate vs Gold

The flexibility and liquidity of gold has made it a favourite investment option for many people. Commercial real estate is an attractive investment option for a long term, where the value of the property increases with time. So, if someone wants to receive high profits through investment, commercial real estate would be a better option than gold. 

• Commercial Real Estate vs Bonds 

Though bond investments are subject to high credit risk, these usually generate a higher return on investment than commercial real estate. Also, in comparison to commercial real estate, bonds have a higher liquidity aspect. This is because transaction costs are higher in terms of real estate. 

Interested to invest in low-risk bonds? Take a look at our homepage and choose bonds that offer profitable returns.

• Commercial Real Estate vs Mutual Funds and Stocks 

A mutual fund or stock investment can be extremely profitable but they also carry the high risk. On the other hand, commercial real estate investment generates moderate returns at a lower risk. Also, stock or mutual fund investment requires a low initial amount, while commercial real estate investment requires a higher investment amount.

Have a look at the tabular representation of the comparison made between commercial real estate investment and other assets based on several parameters.

Steps to Invest in Commercial Real Estate in Gajuwaka

If you are new to real estate investment, then check out the following steps for investment in a commercial real estate property in Gajuwaka.

Step 1: Plan a budget as to how much you want to invest in a commercial real estate property and accordingly look for the properties.

Step 2: Research some properties as per the size and location of the property you are looking for and analyse its competitors as well.

Step 3: Shortlist some of them based on your budget and requirements.

Step 4: After thorough research, finalise a property and ensure to make payments.

Step 5: Your payment must include stamp duty charges, registration charges, brokerage charges (if any), etc.

Step 6: Before payment, check whether all property papers are in the proper place and whether they are verified or not.

Step 7: At last, don’t forget to insure your property with a suitable insurance policy. 

Final Word

The locality of Gajuwaka is a popular shopping district of Andhra Pradesh. The availability of APSRTC buses easily help the residents reach major parts of Vishakhapatnam from this area. Some nearby localities include Sheela Nagar, Yendada, and Mulagada. With rapid development seen in its infrastructural and real estate development, the locality has good prospects for commercial real estate investments. 

Frequently Asked Questions