Guide for Bhagalpur Commercial Real Estate Investment

Bhagalpur is a city situated in Bihar. It is popularly known as Silk City for mass production of Tussar Silk. Apart from that, Bhagalpur is on the list of smart cities prepared by government of India. Bhagalpur is also home to a large number of industries like food processing, textile and handloom, leather, tourism and IT and communication. Other than these, famous companies like Coca-Cola, NTPC and Star Cement are also present in this city.

Keep reading to learn about how investing in commercial real estate in Bhagalpur can be a profitable venture. 

Top Reasons to Invest in Bhagalpur Real Estate

Here are some of the reasons why you would want to invest in commercial real estate in Bhagalpur:

• Industries

Bhagalpur is known as Silk City. Other than cotton and silk textiles, various other types of industries are present here in the field of food and agro-base products. Even handlooms and power looms of Bhagalpur are quite famous in the country. Therefore, investing in commercial properties like factories and warehouses can help you earn high returns.

• Tourism

Bhagalpur is quite known around the country for its tourist destinations. Some of the well-known tourist destinations are Vikramshila, Mandar Hill, Maharshi Mehi Ashram, etc. Tourism is considered to be one of the major sectors in Bhagalpur. Therefore, investing in commercial property like hospitality and restaurants might be worth your penny.

Commercial Real Estate Investment Opportunities in Bhagalpur

Here is a list of some of the localities in Bhagalpur that might be apt for investing in commercial real estate: 

• Sabour

It is a good locality due to its excellent connectivity. Apart from that the railway station is only half a kilometre away. Even a metro station is present in the vicinity. Markets are also present within walking distance. Rate of commercial property here may range around ₹30,000.

• Sultanganj

It is a great location in terms of shops and markets. This area is generally used for commercial purposes. All other amenities like connectivity and infrastructure are also good. Railway station is within a 5km radius. Rate of commercial property in the locality is around ₹60 lakh.

Things to Consider Before Buying a Commercial Property in Bhagalpur

Here are some of the points that you might want to keep in mind if you wish to purchase a property in Bhagalpur:

• RERA Authentication

In order to safeguard yourself from legal complications, you can check the authenticity of both the builder and property prior to purchasing the property. You can check the authenticity by visiting the official website of RERA Bihar. 

RERA Real Estate Regulatory Authority was established after the enactment of the Real Estate Regulatory Authority Act of 2016. RERA is a statutory body present in every state which aims to promote accountability and transparency in the real estate sector.

• Evaluate Layout Plan

As operational efficiency is dependent on layout plan therefore it is important to ensure that the layout plan is appropriate. Make sure it has all types of approval from concerned authorities so that you do not end up making any wrong investment decisions.

Stamp Duty in Bhagalpur, Bihar

Stamp duty in Bhagalpur is a tax which is levied by state government of Bihar when you purchase a property. It is mandatory to pay stamp duty to legally own the property you purchase. Here are the rates applicable:

Registration Charges in Bhagalpur, Bihar

When you purchase a property in Bhagalpur, it is mandatory to pay registration charges so that the registration document can work as proof of ownership in court. Mentioned below are the registration charges applicable in Bhagalpur:

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

At present, the starting price of properties in Bhagalpur is ₹266 per square foot and the average price of property here is ₹4829 per square foot. The most expensive properties in this locality are priced as high as ₹13,437 per square foot. The current price trends prove the fact that buying and selling properties in Bhagalpur is profitable at the moment. 

Not only in terms of price but RERA Bihar is working towards improving quality of construction of properties as well. They had sent notices to builders for not complying with RERA Act of 2016. This ensures guarantee of justice in case you face any complications in case you purchase a commercial property in Bhagalpur. 

Other than this, being a smart city is attracting a greater crowd of companies to start their branch offices in Bhagalpur. Therefore, not only in terms of quality but in terms of popularity as well, Bhagalpur is in a great position at the moment.

Commercial Real Estate vs Other Asset Classes

Let us now take a look at the comparison between commercial real estate versus and other asset classes:

Commercial Real Estate vs Gold

Gold is much more volatile and risky in comparison to real estate. In case of real estate, you can earn returns every month; however, this is not possible in case of gold. In terms of quantum of investment, real estate requires much higher investment in comparison to gold.

Commercial Real Estate vs Stocks & Mutual Funds

When it comes to risk and volatility, real estate is much better in comparison to mutual funds and stocks. However, in case of investment amount, you can invest with just a minimal amount in case of mutual funds and stocks but the amount is much higher in case of real estate. In terms of returns, mutual funds and stocks are much better. 

Commercial Real Estate vs Residential Real Estate

In the case of commercial real estate, you can earn much higher returns. However, residential real estate offers better tax benefits in case you purchase the property by taking a home loan. In terms of risk, commercial real estate is less prone to it as lease tenure is for a longer period but in case of residential real estate tenants keep on changing frequently.

Commercial Real Estate vs Bonds

Real estate investment will help you earn higher returns in comparison to bonds. However, in terms of risk and volatility, bonds are much better. The credit risk is low and bonds are highly liquid assets. 

Are you interested to invest in an asset that offers you risk-free and fixed returns? If so, you can explore our website to choose from the wide range of bonds available for you to invest into.

Steps to Invest in Commercial Real Estate in Bhagalpur

Let us take a look at the steps that you can follow if you wish to invest in commercial real estate in Bhagalpur:

Step 1: Fix your investment budget. 

Step 2: Prepare a list of locations which has the amenities that you are looking for in your property. 

Step 3: Plan a field visit to each of the locations on your list and check the authenticity of their legal documents. You can hire a commercial real estate broker to help you. 

Step 4: Finalise a location only after checking whether the property is RERA approved or not.

Step 5: Prepare the legal documents for the purchase such as encumbrance certificate, title deed, sale agreement, etc. 

Step 6: Complete the payment process. Make sure to pay the required stamp duty and registration charges as well. 

Step 7: Lastly, consider purchasing an insurance policy to safeguard yourself financially in case your property incurs any damage in future. 

Final Word

Bihar state government is taking a lot of steps to bring in more investment to Bhagalpur. Whether it is taking legal action against a builder who is not following RERA Act or investing crores of rupees for a smart city project, the state government is doing its best. Renowned industries of large medium and small scale have their presence in this city and are generating employment opportunities. 

This is further transforming Bhagalpur into an industrial hub. Therefore, investing in commercial real estate in Bhagalpur might be worth your money and help you earn great returns in the near future. 

Frequently Asked Questions