Guide for Ichalkaranji Commercial Real Estate Investment

10 min read • Published 19 March 2023
Written by Anshul Gupta

Ichalkaranji is one of the most important cities in the Kolhapur district in Maharashtra, India. This city is popular for primary textile manufacturing which gives it the title ‘Manchester City of Maharashtra’. The city is also well-known for its textile products which are exported not only in India but worldwide. Moreover, this city has a rich cultural heritage. Apart from housing nearly 5000 textile factories, Ichalkaranji is a hub of small-scale industries. 

Approximately, more than 40% of automobile sales in Kolhapur are from this city. Ichalkaranji has service centres for most of the well-known car manufacturers like Tata Motors, Hero, Maruti Suzuki, Bajaj, Honda, and many more.

Considering Ichalkaranji is one of the most developed cities in India, real estate investors have been eyeing this place for the past few decades. So, commercial real estate sector IN Ichalkaranji has good prospects. So, let’s read the details of where and why can you invest in commercial real estate in Ichalkaranji. 

Top Reasons to Invest in Ichalkaranji Real Estate

Ichalkaranji has large, small-scale, silver and gold industries which have opened up huge opportunities for the commercial real estate sector. Here are the top reasons that will help you understand why investing in commercial real estate in Ichalkaranji is a good idea.

  • Location and Transportation

Ichalkaranji is well connected with the rest of India by road and railway services. The state bus services of Maharashtra, Maharashtra State Road Transport Corporation (MSRTC) runs a bus to Sangil from Ichalkaranji every 15 minutes. Private bus services from Ichalkaranji connect the city with Indian cities such as Pune, Mumbai, Nashik, Shirdi, Bangalore, etc.

Hatkanangale railway station is the nearest major railway station to the city of Ichalkaranji. The station is only 7 km away from the city. Kolhapur Airport or Chhatrapati Rajaram Maharaj Airport is only 18.6 km away from Ichalkaranji.

  • Industrial Area

Ichalkaranji is one of the busiest, most profitable, and fastest-growing industrial areas in Maharashtra. The city’s economy is mostly driven by the textile industry. The second largest industry is the engineering industry which predominantly consists of car manufacturing. Textile goods from the city are sold not only all over India but also in various parts of the world.

  • Textile and Engineering Industry

‘Manchester of Maharashtra’, Ichalkaranji has multiple spinning units with 1.25 lakh power looms, more than 20,000 semi-automatic looms, and more than 8000 shuttle-less looms that get a turnover of nearly ₹1000 crore each day. Many national and international fashion brands such as Raymond’s, Armani, Hugo Boss, etc are growing their business in Ichalkaranji.

Ichalkaranji is also popular for Fundamental Measuring Instrument manufacturing. These machines are marketed mostly in India and different other countries.

  • Cultural Heritage

Not only industry, but Ichalkaranji also has a rich cultural heritage. As this is a growing industrial area, people from different cultures and different parts of India live in Ichalkaranji. Almost all festivals of different religions are celebrated in this city. Another important factor to note is that the city offers visitors a variety of cuisines. 

  • Infrastructure

Commercial real estate investors should note that Ichalkaranji boasts of good infrastructure. To improve the infrastructure of the textile industry, ‘Ichalkaranji Textile Development Cluster Limited’ has been formed. Moreover, the city has more than 100 high schools. Amongst them, there are 3 international schools and more than 20 colleges, 3 engineering colleges, and many more.

Commercial Real Estate Investment Opportunities in Ichalkaranji

Let us explore the areas suitable for commercial real estate investment opportunities in Ichalkaranji: 

  • Rui Phata 

You can consider investing in industrial areas in Rui Phata in Ichalkaranji. The area is well connected with other prominent areas in the city and prices start from ₹4,083 per square foot

  • Khotwadi

Khotwadi is a prominent industrial area in the city of Ichalkaranji, Maharashtra. This area has multiple textile industries on-site. You can find ample commercial plots in this place to invest in real estate. Moreover, Khotwadi is located only 6.9 km away from Ichalkaranji. Prices start from ₹25,000

Things to Consider Before Investing in a Commercial Property in Ichalkaranji

Investing in a commercial real estate property in Ichalkaranji can be a great decision if you check some things beforehand. These include:

  • RERA Authentication

Make sure to check if the real estate property you are investing in Ichalkaranji is listed under the RERA Act 2016. This Act was introduced to usher in transparency in the real estate sector. Every state has its regulations regarding RERA and builders/developers must register themselves and their properties as per the rules. 

  • Infrastructural Development 

Another important point you need to make sure of is whether the area has good infrastructural development or not. Apart from a good location and connectivity, investors need to make sure that there is a proper supply of water and electricity, staircases, and elevators. If there are CCTV cameras installed, it would assure prospective tenants about the security in the area. 

Stamp Duty in Ichalkaranji, Pune

Ichalkaranji comes under the division Pune in the state of Maharashtra, India. Keep reading to find out about stamp duty charges applicable in Ichalkaranji-

City in Maharashtra1st Sept 2020- 31 Dec 20201st Jan 2021- 31 Mar 2021From 1st April 2022 (For Men)From 1st April 2022 (For Women)
Pune3%4%7%, with 1% metro cess, transport surcharge and local body tax6%, with 1% metro cess, transport surcharge, and local body tax

Registration Fees in Ichalkaranji, Pune

Keep reading to find out about Ichalkaranji’s registration charges: 

City in MaharashtraRegistration Charges
PuneRs.30,000 for properties above Rs.30 Lakh1% of the property value for properties below Rs.30 Lakh

Ichalkaranji Commercial Real Estate Sector- What’s the Forecast?

Ichalkaranji is one of the most important cities in India. The textile industries and engineering industries of the city generate huge revenues for the country each day. The city is also well connected with the rest of the state and country through roadways.

Ichalkaranji is also set to benefit from Kolhapur’s economic development. The distance between these cities can be covered in less than an hour. Moreover, the Central Government has approved ₹1,130 crore for building highways along a 62 km stretch between Kolhapur and Sangli. Moreover, the State Government of Maharashtra has undertaken an ambitious plan of connecting 36 districts or 3000 km via roads and highways. 

Therefore, Ichalkaranji has been getting enough attention from commercial real estate experts and investors for the past few decades. Depending on all the factors, the commercial real estate market is growing exponentially in this city. 

Commercial Real Estate vs Other Asset Classes

The best thing about a commercial real estate property is that it comes with a constant cash flow, security, and sometimes even tax benefits. It generates steady revenue at low risk. Here are the differences between commercial real estate and other asset classes that you should know.

Commercial Real Estate vs Stocks and Mutual Funds

Stocks and mutual funds offer a higher return than commercial real estate. But, the risk associated is high as well. However, commercial real estate is a much safer option because it is associated with moderate risk. However, the initial investment in commercial real estate demands a substantial corpus.

Commercial Real Estate vs Bonds

Both bonds and commercial real estate are good sources of passive income. If you compare commercial real estate with bonds, you will find that the former generates higher returns. Bonds are described as fixed-rate investments generating low-moderate returns at low risks. But bonds can be liquefied easily unlike commercial properties, where searching for a suitable tenant takes up a lot of time.  

Willing to invest in bonds? Checking our homepage can help you out! 

Commercial Real Estate vs Residential Real Estate

When you are investing in real estate, choosing between commercial real estate and residential real estate can be confusing. Commercial real estate property brings you more profit than residential real estate as they generate more rental income. An important point is that residential real estate carries various tax benefits. However, investing in a commercial property can be a bit tough for a single investor.

Commercial Real Estate vs Gold

While investing in gold, you can invest for a long tenure as well as for a short period. But, commercial properties are good for long-term investments only. You can sell gold much more easily than commercial real estate, which is one of its major advantages. But, commercial real estate holds the potential of generating higher returns than gold. 

Here’s a table to compare the different asset classes based on various parameters such as returns, liquidity, risk, volatility and ticket price:

ParametersCommercial Real EstateStocks and Mutual FundsGoldResidential Real estateBonds
Returns High High Moderate ModerateModerate
Liquidity LowHighHigh LowModerate
Risk LowHighLowLowModerate
Volatility LowHigh Low LowLow
Ticket priceHigh Varies Low High Varies 

Steps to Invest in Commercial Real Estate in Ichalkaranji

While investing in commercial real estate, following some basic steps can help you out with a smooth investment. These steps include,

Step 1: Finalise your budget for your commercial real estate investment. Research the potential sites which will see a price increase soon. 

Step 2: Choose a location. Consult local industry experts and real estate market dealers if you feel the need to take professional help. 

Step 3: To get an idea about the profitability of the investment, seek help from real estate experts before investing.

Step 4: Check if your selected real estate property is registered under the RERA website of the state.

Step 5: Pay all the necessary charges such as stamp duties and registration charges. Convert the property to your name after paying all the charges.

Step 6: Make sure that your newly bought property is covered under a suitable insurance policy. It will lend an added layer of protection. 

Final Words

Ichalkaranji, in the state of Maharashtra, is a significant city in India. The place has different industries such as textile and engineering. This city generates huge revenues by exporting textile-based products and manufacturing cars and their parts.

The real estate sector in Ichalkaranji is developing rapidly. Therefore, if you are thinking that you should invest in commercial real estate here, then going through the above points may help you. 

Frequently Asked Questions

What are some well-known textile industries in Ichalkaranji?

Ichalkaranji is well known for its textile industries. Some of the most well-known and well-to-do textile industries of this place include Parmaj Group of Textiles, Mandhania Weaving Mill, Shingade Textiles, and Mansi Textiles. 

Which is the nearest airport to Ichalkaranji?

The nearest railway station of Ichalkaranji is Hatkanangale railway station which is only 7 km away from the city.

Which type of commercial property can give you the most profit?

Some of the most profitable properties in commercial real estate are those with a high number of tenants. These include office spaces, student housing, and apartment complexes.

What are some well-known textile industries in Ichalkaranji?

Ichalkaranji is well known for its textile industries. Some of the most well-known and well-to-do textile industries of this place include Parmaj Group of Textiles, Mandhania Weaving Mill, Shingade Textiles, and Mansi Textiles. 

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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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