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Guide for Bihar Sharif Commercial Real Estate Investment

10 min read • Updated 11 May 2023
Written by Anshul Gupta

Bihar Sharif, located in the eastern state of Bihar has flourished to be a lucrative destination for commercial real estate investments. The economy of the city is largely stirred by the agriculture, tourism, household manufacturing units and education sector. The presence of rivers in the region led to agricultural development. 

Bihar Sharif falls among the hundred cities that will gain funds and develop as a smart city under the flagship program Smart Cities Mission. In addition, Bihar Sharif has secured acclamation for being the most liveable among other cities and houses a population under 1 million.  In the context of a housing population under 1 million, the city has secured 63rd position among other 111 Indian states. 

To know the particularities of commercial real estate investments in Bihar Sharif, refer to the following sections.

Reasons to Invest in Commercial Real Estate in Bihar Sharif

Bihar Sharif houses the following resources that make it ideal for commercial real estate investments.

  • Agricultural Trade

One of the major economic activities that are prevalent in Bihar Sharif is agricultural trade. The region is popular for its massive production of vegetables. Crops like mustard seed, potato, cauliflower etc., are grown in plenty and are exported to the neighbouring states. The city contributes significantly to the annual agricultural output of Nalanda. 

  • Education Centre

Bihar Sharif is also a fulcrum for education centres. Numerous colleges, schools and other educational institutes are situated in this city. Most of the colleges here are affiliated with Magadh University at Bodh Gaya. Even the place houses many agricultural colleges. Besides housing educational institutes, Bihar Sharif is also known for its heritage and other important sites which leads to the growth of the hospitality industry.

  • Robust Transportation System

Bihar Sharif is well-connected by roads and railways. As it is the district headquarters, the place is a significant transportation hub. The road network connects Bihar Sharif with major cities like Jamshedpur, Patna, Ranchi, Nawada, Bokaro, Kolkata, Gaya, Barhi, Mokama and more. NH 33 and NH 20 (part of the Great Asian Highway) along with AH42 cross the city. 

National Highway 33 links Bihar Sharif to Barbigha, Jahanabad, Arwal, Asthawan etc. Even the State-owned intercity bus facility can also be availed. Bihar Sharif Junction, a component of the National Broad gauge network is the nearest railhead here.

Commercial Real Estate Investment Opportunities in Bihar Sharif

Mentioned below are some of the prominent property sites where you can choose to invest in commercial property.

  • Sohsarai

Another locality that is favourable for commercial real estate investments in Bihar Sharif is Sohsarai. The region houses a large-scale textile market and hence is considered to be ‘Mini Surat’. The place has well-maintained road and railway networks. National Highways that are reachable to Sohsarai are NH22 and NH20. Railway stations that are near Sohsarai are Sohsarai Railway Station and Bihar Sharif Junction Railway Station. 

  • Ramchandrapur

Ramchandrapur is another locality which is ideal for investing in commercial property in Bihar Sharif. The region houses fully-functional warehouses and industries.  Tungi Halt railway station and Bihar Sharif Junction railway station are nearby railway stations that are easily accessible from Ramchandrapur. Even the places house multiple health centres, colleges and schools.

  • Badi Pahadi

Badi Pahadi is one such region in Bihar Sharif where you can get agricultural land to invest in and lay out your business pursuits. The place can be easily accessed via trains, bus and metro. The place has all the necessary amenities that will aid the growth of a business. 

Things to Consider Before Purchasing a Commercial Property in Bihar Sharif

You must consider the following factors before investing in commercial real estate in Bihar Sharif. 

  • RERA Authentication

The Real Estate (Regulation and Development) Act was implemented to facilitate transparency and standardisation in the real estate market. To fetch all the information related to the property, you must ensure that it is registered with RERA. It will also help you get compensation in case of discrepancies. In addition, you must be aware of the laws that are applicable in the locality and the taxation policies. 

  • Property Location

Location of the commercial property matters when you make an investment. You must opt for a location that can be accessible from different parts of the city.In addition, analyse the distance of the property location from the primary markets, and evaluate the easy accessibility of the highways, transport services and warehouses. Also investing in a premium location will bestow you with high returns on investments. 

  • Check for Amenities and Facilities

Apart from checking property location, look for other amenities and facilities that can be easily accessed from the property. Making an investment in commercial property that has many amenities will boost business growth and will warrant good returns. Ensure that the property has sufficient car parking, uninterrupted power supply, advanced security systems, robust internet services and more.

Stamp Duty in Bihar Sharif

Look at the table to know the stamp duty rates in Bihar Sharif.

Property OwnerStamp Duty Rates
Man to woman5.7%
Woman to man6.3%
Others6%

Registration Charge in Bihar Sharif

The table below reflects the registration charges needed during a property transaction.

CategoryRegistration charges
Man to woman1.9%
Woman to man2.1%

Bihar Sharif Commercial Real Estate Sector- What’s the Forecast?

Besides housing all the necessary components needed for the growth of commercial properties, the place has massive potential for future development. For instance, the recent development of the Fatuha-Islampur branch line by connecting Daniyawan to Bihar Sharif has strengthened transportation here. Even the region after coming under the first intercity electric bus service has become easily accessible.

The city will further emphasise strengthening the economy and diversifying it. Under the title of smart city, Bihar Sharif is expected to flourish with the blend of technology and strategic way of sustaining. It is anticipated that the place has the potential to generate 70% of new job opportunities by 2030 and contribute more towards the GDP.  Moreover, as Bihar Sharif is spreading over various religious tourism circuits, it will be attracting more investments.  

In addition, the State Government has taken initiative and invested a substantial amount to create ponds for cultivating fish which will eventually lead to the development of a business option for those looking to set up their new ventures.

Commercial Real Estate Vs Other Asset Classes

Before investing in commercial real estate, go through the particularities of different asset classes, it will help you make an informed decision. 

  • Commercial Real Estate Vs Stocks and Mutual Fund

Though mutual funds and stocks help you earn higher returns, it exposes your money to the equity market, hence the volatility and chance of losing the invested money are higher. On the contrary, commercial real estate investment will help you earn returns without undergoing higher risks. You can reap the benefits of rental income alongside.

  • Commercial Real Estate vs Gold

Gold suits both short and long-spanned investments and come with higher liquidity benefits. However, the market volatility of the commodity is more. On the other hand, commercial real estate investments are considered more stable and help earn side income. With annual appreciation, commercial real estate helps you with steady rental earnings.

  • Commercial Real Estate vs Residential Real Estate

Commercial real estate investments will bestow high returns. In addition, it is comparatively easier to deal with tenants, which are usually retail chains, corporate etc. However, though residential real estate comes with lower entry tickets and an easy leasing process, it has lower rental yields. 

  • Commercial Real Estate Vs Bonds

Bonds are considered fixed-income securities owing to their static value. You can get a guaranteed payment after investing in a bond, which will help in gaining visibility about your future earning status. Commercial real estate investments, on the other hand, will help you earn higher returns. The value of commercial real estate tends to increase with time, hence it will help you earn a hefty amount. 

If you want to earn a fixed return, invest in a bond. To do so, explore our website and register for top-rated bonds now!

Refer to the comparison table to gain an idea regarding the varied asset classes based on returns, risks, ticket size, volatility and liquidity.

Parameters Commercial Real Estate GoldStocks & Mutual Funds BondsResidential Real Estate 
ReturnsHighModerateHighModerateModerate
LiquidityLowHighHighModerateLow
VolatilityLowLowHighLowLow
RiskLowLowHighModerateLow
Ticket SizeHighLowVariesVariesHigh 

Steps to Invest in Commercial Real Estate in Bihar Sharif

Here are the steps that will guide you to make commercial real investments in Bihar Sharif.

Step 1: Check your finances and finalise a budget. 

Step 2: Search for best commercial properties that are in potential locations that can fetch you a higher rate of returns.

Step 3: Confirm some of the best property locations that best fit your budget and requirements.

Step 4: Conduct online research to analyse the sites. You must also go to the property locations in person. For better understanding and support, you can reach out to a real estate agent. 

Step 5: Now finalise a commercial property or plot. But before that ensure it is RERA-registered.

Step 6: Keep all the official documents in order.

Step 7: Clear payments for stamp duty and registration charges. If you availed service from real estate agents, clear their service charge likewise.

Once you are done investing in a commercial property, opt for an insurance plan to cover it from unforeseen scenarios.

Final Word

Bihar Sharif is the 5th largest metropolitan region in the eastern state of Bihar. The growth of residential real estate in the place can be attributed to the education centres and agriculture that is further supplemented by tourism. However, to make an investment in the commercial real estate sector here, you must be well aware of the intricacies of the locations, the property rates and finalise a budget plan. This will ensure you experience a smooth investment journey ahead.

Frequently Asked Questions

  1. What are the different types of commercial property in Bihar Sharif in which one can invest?

Ans. There are several types of commercial properties in Bihar Sharif in which you can invest. Some of them are retail shops, office buildings, industrial complexes etc. 

  1. What are the penalties for promoters under RERA?

Ans. There are several penalties that real estate promoters have to bear in case they are found responsible for any discrepancy. For instance, if promoters do not comply as per the directions and orders issued by the state authority and violate provisions mentioned under Section 3 then they may serve imprisonment up to 3 years or be penalised with fines up to 10% project cost (estimated cost) or may face both the penalties.

  1. Which airport is nearest to Bihar Sharif?

Ans. The nearest airport to Bihar Sharif is Patna Airport which is located at a distance of 86 km. The second nearest airport is Gaya International Airport, at a distance of 95 km.

  1. What are the documents that are required while investing in a commercial property in Bihar Sharif?

Ans. You must keep the following documents in order while investing in commercial real estate in Bihar Sharif.

  • Mother’s deed
  • Encumbrance certificate
  • Building approval plan
  • Sales deed
  • Power of attorney
  • Latest tax payment receipt etc.

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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