Guide for Gaya Commercial Real Estate Investment

9 min read • Updated 11 May 2023
Written by Anshul Gupta
Gaya Commercial Real Estate Investment

Gaya is one of the famous pilgrimage destinations in the country located in Bihar. Tourism is the primary source of income that broadly contributes to the city’s economy. The location of the city makes it extremely convenient for real estate development. 

It is located 100 Km south of Patna and lies on the banks of river Falgu. It is bounded by Jahanabad in the north, Chatra in the south, and Nawada and Aurangabad in the east and west respectively.   

Gaya has an estimated 18,000 large, small, and micro-scale industries with a forest cover of 77,836 hectares. Gaya is one of the prominent contributors to Bihar’s economy. Furthermore, textile and agriculture are other flourishing industries in Gaya. Continue reading the sections below to discover the prospects of Gaya commercial real estate.    

Top Reasons to Invest in Gaya Real Estate

Some of the top factors that make Gaya a perfect option for commercial real estate investment are as follows: 

  • Industrial and Tourism Hub

The industrial area in Gaya acquires over 30 acres of land divided into 51 plots with a prevailing rate of ₹15.68 lakhs per acre. Furthermore, there’s ample availability of workforce, with an estimated 67,800 daily workers engaged in small-scale industries.

The cotton textile industries witness the highest capital investments among micro and small scale-industry followed by agro-based industries. Furthermore, Gaya holds religious importance to both Buddhists and Hindus. It is widely believed that Lord Rama visited the place to pay homage to his ancestor and the place where Lord Buddha preached the Fire Sermon. 

This invites pilgrims from varied parts of India and abroad, which offers lucrative opportunities to open accommodations and restaurants catering to pilgrims’ convenience. 

  • Connectivity

The National Highways 82, 83 and 2 connect this city with the rest of the state and the country. These National Highways are responsible for inter and intra-state connectivity of Gaya to Kolkata, Delhi, Faridabad, Allahabad, Varanasi, Patna, Makoma, etc. making businesses and commercial ventures more efficient.

The Gaya Railway Junction which has 9 platforms halting 117 trains connects the city to Kolkata, Chennai, Ranchi, Guwahati, Bokaro, Varanasi, etc. The railway junction is responsible for catering to cheaper commercial transit and lies 9 Km from the Gaya International Airport. The Airport provides connectivity to other parts of India along with Bhutan, Myanmar, Thailand, etc. 

  • Location

The location of Gaya plays a vital role in its industrial advancements. The city lies on the bank of the Falgu River and has favourable climatic conditions to grow crops like paddy, wheat, potato, and lentils. Furthermore, the major minerals available in the city are boulders and sand collected from the river bank which are collected and transported to nearby cities and districts.

The favourable geographic location of the city has helped in flourishing commercial and economic activities. 

Commercial Real Estate Investment Opportunities in Gaya

Following are some of the best localities to invest in commercial real estate

  • Bodhgaya

Bodhgaya is one of the most prominent sacred sites for Buddhist people. This is where Lord Buddha gained enlightenment under the Bodhi tree. With tourist attractions like Mahabodhi Temple, the Bodhi tree, Muchalinda Sarovar, the Great Buddha Statue, the Thai Temple, etc. the place is an abode to Buddhist pilgrims. 

Therefore, the demand for tourist amenities like lodges, restaurants, etc is in great demand. You can easily set up a hotel, or restaurant chain in Gaya to earn high returns.

The commercial real estate price may range from ₹9 lakh to ₹6 crores.

  • Sherghati

Sherghati is a famous locality in Gaya, as it offers proper commercial infrastructure and amenities to support industrial workflow. The locality is accessible to Morhar and Adari rivers. Moreover, with the availability of NH-22 and NH-120, the locality can be a perfect site to thrive agricultural-based businesses.

Things to Consider Before Investing in a Commercial Property in Gaya

You must keep the following pointers in mind while availing commercial real estate in Gaya

  • Industrial Developmental Prospects

Before investing in commercial real estate you must look for the city’s commercial and industrial prospects. You can do so by evaluating various factors, like the availability of amenities like proper electricity and water supply, location and connectivity, etc. Furthermore, you must calculate the amount of potential profit an industry can earn based on the topography and demography of the region.

  • Location Advantage

Before investing in commercial real estate, you must thoroughly analyse the property’s location. Generally, for commercial real estate, you may look for proper availability of resources, availability of rivers, accessibility to National Highways and other factors adding to the real estate’s market value.

  • RERA Authentication

The Real Estate Regulatory Authority (RERA) is a governing body formed under the Real Estate (Regulation and Development) Act 2016, which promotes transparency in the real estate sector by eliminating illegitimate transactions and fraud. You can check your builder’s legitimacy by visiting Bihar’s official RERA portal before investing in commercial real estate in Gaya. 

Stamp Duty in Gaya

The following table provides a detailed report on stamp duty rates in Gaya

GenderStamp Duty Rate
Female5.7%
Male6.3%
Joint6%

Registration charges in Gaya

The registration charges in Gaya are as follows

GenderRegistration Charges
Female2%
Male2%
Joint2%

Gaya Commercial Real Estate sector: What’s the Forecast?

The government sanctioned the development of a 1,650 acres manufacturing hub in Dobhi, Gaya, which would be a part of the upcoming Amritsar-Delhi-Kolkata freight corridor. The project is estimated to cost around ₹1,000 crores and is expected to boost the economic activity in the city.

A 230 Km long Amas-Darbhanga Greenfield Expressway is in pipeline to facilitate faster and more efficient commercial transit. The expressway is expected to connect the outskirts of Gaya to Aurangabad, Patna, and Darbhanga. This would reduce the travel time from NH-2 to Nh-57 offering connectivity to remote parts of Bihar. The project is estimated to cost around ₹2,000 crore.

Gaya has ample prospective agricultural plots available for people who are willing to establish agro-based businesses. Furthermore, Gaya’s reputation as a tourist destination is attracting several restaurants and resort chains in and around the city. Therefore, if you are looking to set up an agricultural or tourist-based industry, Gaya can be a perfect fit for the cause.

Commercial Real Estate vs Other Asset Classes

The section below compares commercial real estate to other popular asset classes based on various parameters

Commercial Real Estate vs Gold

Commercial real estate is an immovable asset, whereas physical gold is a commodity and bears the risk of getting stolen or damaged. Gold has higher liquidity than commercial real estate. Therefore, buying and selling gold is far more convenient than commercial real estate. However, commercial real estate can offer higher return as compared to gold. 

Commercial Real Estate vs Bond

Bonds are excellent source of passive income at lower risk. These are comparatively safer investment options. In contrast, commercial real estate can yield much higher returns than bonds and you can avail tax benefits. 

If you want to invest in top-quality bonds offering stable returns, then check our homepage and start investing now at no additional or hidden costs. 

Commercial real Estate vs Residential Real Estate

Commercial real estate yields higher returns than residential real estate. However, in case of residential real estate it might be comparatively easier to find tenants. 

Commercial Real Estate vs Mutual & Stocks

Mutual funds and stocks are high risk-high return investment options and can yield significantly higher returns than commercial real estate. However, they are volatile and subject to market risk. Furthermore, you can start investing in mutual funds and stocks with much lower capital than commercial real estate. But in commercial real estate the risk associated is comparatively lower. 

The table below provides a more lucid comparison of commercial real estate to other asset classes based on various parameters like returns, liquidity, volatility, ticket size, etc.

ParametersCommercial Real Estate Stocks & Mutual FundsResidential Real EstateBonds Gold
ReturnsHighHighModerateModerateModerate
LiquidityLowHighLow Moderate High 
RiskLowHighLow Moderate Low 
VolatilityLowHighLow Low Low 
Ticket SizeHighVariesHigh Varies Low 

Steps to invest in Commercial Real Estate in Gaya

Follow the steps below to start investing in commercial real estate in Gaya

Step 1: Allocate a suitable budget.

Step 2: Look for prospective localities catering to commercial amenities and infrastructure.

Step 3: Shortlist a locality that best fits your budget and requirements.

Step 4: Visit the RERA site to verify its prospects and market value or you may consult a professional to evaluate the true market price of the commercial property more accurately. 

Step 5: Once you decide on a favourable commercial real estate prepare all the required documents for documentation and formalities. 

Step 6: Consult a legal assistant to proceed through the documentation process to ensure a seamless and error-free transaction.

Step 7: Pay for the sale deed, stamp duty, registration charges, professional fees, and other applicable charges.

Step 8: Once the property handover is completed, make sure to get the commercial real estate insured to safeguard yourself from financial losses.   

Final Word

Gaya has a promising future to establish itself as one of the major commercial hubs in Bihar and India considering its location and transportation infrastructure. Furthermore, the volume of tourists visiting Gaya opens the scope for an opportunity to set up amenities catering to tourist convenience. 

Frequently Asked Questions

Do I need a broker for commercial real estate?

You may proceed through the formalities on your own. However, professionals have years of experience and expertise, which can help you look for and buy commercial properties at justifiable rates.

What documents are required for commercial real estate?

You will need the sale deed, building plan, encumbrance certificate, Tax receipt, etc. You can contact a legal assistant who will specify the required documents in detail, and guide you through the formalities.

Why do I need to pay for stamp duty?

Stamp duty is the legal tax paid to the State Government, which acts as evidence of handover or purchase. Please note that you will have to pay the stamp duty charges even when you are buying a pre-owned commercial property.

Can I convert a residential property to commercial property?

You can convert your residential property to commercial real estate by approving your request from the local authorities. You will also need to apply for a commercial license for the same.

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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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