Guide for Durgapur Commercial Real Estate Investment
Durgapur is a major tier-II planned city in West Bengal which is one of the most important commercial and industrial centres in the state.
The city is one of the most important industrial centres in the country. It is also known as the ‘Ruhr of India’. Apart from being one of the major steel-producing areas in the country, it is also a major educational hub.
Due to all these factors, Durgapur can be one of the best places for commercial real estate investments. Continue reading to know more about the commercial real estate opportunities in Durgapur.
Top Reasons to Invest in Durgapur Real Estate
There are several reasons why Durgapur can be an ideal place for commercial real estate investment:
- Transport and Connectivity
Durgapur has excellent connectivity and transport facilities. It is well-connected to other cities and towns by roadways, railways and air transport.
Durgapur is connected by roadways to districts like Bankura, Birbhum and Purulia. NH-19, NH-14 and SH-9 connect the city to cities in Odisha as well as other regions in the country.
Durgapur is also among the few cities in the country which has an Asian Highway passing through it. The AH-1 connects the city to Pakistan, Afghanistan, Bangladesh, Myanmar, Iran, Thailand, Cambodia, China, Korea, Vietnam, Turkey and Japan.
Apart from roadways, Durgapur is also connected to the other regions of the country by an efficient railway network. It is one of the most important railway stations in the Eastern Railways. Most of the major trains stop at this railway station, reaffirming the importance of the city.
- Industry and Commerce
Durgapur is one of the most important industrial centres in the country. Almost 42% of the district’s economy comes from the non-agricultural sector. The city is famous for its steel-manufacturing industry and is a major contributor to the country’s exports and economy.
Additionally, there are several other industries in Durgapur, which include a coal-mining machinery plant, an alloy and special steel plant, brick and tile manufacturing plants and thermal power plants.
Being a business hub, Durgapur promises high returns on any commercial real estate investment.
Commercial Real Estate Investment Opportunities in Durgapur
There are several prominent commercial localities in Durgapur where you can profitably invest in commercial real estate. Here are some of the areas:
Benachity is a major commercial locality in Durgapur. It has excellent connectivity with the rest of the city. There are numerous bus stops nearby. Furthermore, the locality is connected to other nearby cities by the NH-19.
Benachity is also close to the prominent industrial and technological hubs in the city. The Webel IT Park is barely 3 km from this locality.
Apart from these, there are also numerous hotels, restaurants and shopping malls in this area. Some of the best malls and supermarkets in Durgapur, like the Fortune Plaza, Dreamplex and Junction Mall, are in this locality.
- Arrah Bidhannagar
Arrah Bidhannagar is another prominent commercial locality in Durgapur. It is well-connected to the rest of the city by different modes of transportation.
The locality has excellent infrastructure and amenities like financial institutions and hospitals. Investing in this area can be a profitable venture due to its proximity to multiple commercial centres. Commercial real estate investments in Arrah can fetch high resale value in the future.
Things to Consider Before Investing in a Commercial Property in Durgapur
There are a couple of things that you must keep in mind to make a better choice for the right commercial property to invest in Durgapur. Some of the most important factors are given below:
- Location and Connectivity
The location of a property plays a major role in determining its commercial value. If the commercial property is located in an area which has excellent infrastructure and amenities, the value and the rental prospects of the property will be much higher.
Similarly, if a commercial property is located in an area which has excellent transportation connectivity with the rest of the city, the property is likely to generate high returns.
Therefore, always look for a property in a location which has good infrastructure and connectivity facilities available.
- HIRA Verification
The West Bengal government established the Housing Industry Regulatory Authority (HIRA) after the enactment of the West Bengal Housing Industry Regulatory Act 2017. It is a statutory body whose aim is to maintain transparency and accountability between the buyers and sellers of the state’s real estate sector.
Before purchasing a property in Durgapur, visit the HIRA West Bengal portal to check the authenticity of the property and its builder.
Stamp Duty in Durgapur, West Bengal
Apart from the price of the property, you will also have to pay the requisite stamp duty for purchasing the property. Given below are the stamp duty rates for commercial property in Durgapur:
|Property Location||Stamp Duty (For property Upto ₹25 Lakhs)||Stamp Duty (For property above ₹25 Lakhs)|
|Corporation (Kolkata/Howrah) area||6%||7%|
|Municipal Corporation Area||6%||7%|
|Areas that do not fall under the above two||5%||6%|
Registration Charges in Durgapur, West Bengal
You have to register your property to become its legal owner. Given in the table below are the registration charges for property in Durgapur:
|Property Location||Registration Charges|
|Corporation (Kolkata/Howrah) area||1%|
|Municipal Corporation Area||1%|
|Areas that do not fall under the above two||1%|
Durgapur Real Estate Sector: What’s the Forecast?
Durgapur is witnessing rapid progress in its industrial and commercial sectors. Both state and central government are focusing on making Durgapur a prime industrial and commercial location in the eastern region of India. To achieve that target, government is making rapid strides in developing the infrastructure of the city, especially its transportation networks.
Prime Minister Narendra Modi has inaugurated the electrification of 294 km stretch of Andal-Sainthia-Pakur-Malda and Khana-Sainthia sections. The electrification of these stretches will ensure better transportation of coal, steel, stone chips, and manufactured goods from Durgapur to the rest of the country. Furthermore, the Durgapur airport has also been operationalized as part of the larger commercialisation programme of the city.
As a result of these combined efforts, Durgapur is now attracting new investors from different economic sectors in large numbers. The Power Ministry of West Bengal has also announced the establishment of a hydrogen plant in Durgapur.
Durgapur is also receiving huge foreign investments in sectors like power, education, healthcare and IT. Investments in these sectors are also catalysing simultaneous growth in the hospitality sector. The Indian Hotels Company (IHCL) has already announced the construction of a Ginger-branded hotel in Durgapur.
Furthermore, the city is also making great progress in the sustainable management of its industries. The Durgapur Steel Plant attained the 1st position in the Sustain Awards 2022 in Industrial Water Management.
With such progress, Durgapur is one of the best locations at present for commercial real estate investment.
Commercial Real Estate vs Other Asset Classes
Here is a comparison between commercial real estate investment and other asset classes which might help you to decide better on whether commercial property investments might be lucrative for you.
- Commercial Real Estate vs Gold
Commercial real estate investment can be more profitable than investing in gold. However, gold has higher liquidity than real estate investments. Therefore, it is ideal to invest in commercial properties if you have a mid to long-term investment plan.
- Commercial Real Estate vs Residential Real Estate
Commercial real estate has higher rental prospects than residential properties. Moreover, the rental income generated from commercial properties tends to be higher than residential properties.
- Commercial Real Estate vs Stocks and Mutual Funds
Stocks can get you a higher profit than commercial real estate investments. However, stock-oriented investments are highly volatile and the returns fluctuate according to market conditions. On the other hand, commercial real estate investment involves less risk and can act as a source of stable passive income.
- Commercial Real Estate vs Bonds
Both these asset classes can get you high profits. However, bonds have a lower credit risk when compared to commercial properties. Furthermore, bonds are highly liquid investment options.
If you wish to invest in bonds, register on our platform today. Invest in the top-rated bonds available in the market at no additional costs or hidden charges.
Here is a table which compares the different asset classes based on returns, liquidity, risk, volatility, and ticket size:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Commercial Real Estate in Durgapur
Here are the steps that you can follow to invest in Durgapur’s commercial real estate:
Step 1: Finalise your investment budget.
Step 2: Conduct online research to know the best areas which have high commercial prospects.
Step 3: Once you shortlist a few sites, visit the locations to assess the infrastructure and amenities available nearby.
Step 4: Choose a suitable property. Prepare the necessary ownership documents like the title deed, foundation certificate and property assessment extract.
Step 5: Complete the payment formalities to purchase the property. Make sure to pay the required stamp duty and registration charges to become the legal owner of the property.
Durgapur is one of the most developed industrial centres in the country. It is witnessing rapid developments which will turn it into a model industrial city.
Durgapur is attracting more and more investments in the commercial sectors. At this juncture, investing in the commercial real estate of this city can be a lucrative opportunity for real estate investors.
Frequently Asked Questions
Is Durgapur a safe city for business?
Durgapur has one of the lowest crime rates in the country. As per a recent survey, the level of crime in Durgapur is 8.33%. Thus, the city is quite safe for commercial real estate investment and business ventures.
What is commercial property insurance?
Commercial property insurance provides financial coverage against any losses or damages incurred to your commercial property or its constituents, caused by theft or natural calamities or fire.
What is stamp duty?
A stamp duty is a tax that is imposed by the state government on the purchased property. It is payable under the Indian Stamp Act, 1899. The concerned state government levies it as evidence for any sale or purchase of property.
What is a sale deed?
A sale deed is a legal document that records the sale and change of ownership of a property. It is the main document which testifies the transfer of property from a seller or a builder to a buyer.