Guide for Jalna Commercial Real Estate Investment

8 min read • Published 19 January 2023
Written by Anshul Gupta
Guide for Jalna Commercial Real Estate Investment 1

Jalna is one of the premier commercial cities of the Jalna district of the Maharashtra region. Situated on the banks of the Kundakali River, it is located 170 kilometers northeast of Ahmednagar and 60 kilometers east of Aurangabad. The city is also significantly known for cotton spinning, ginning, and weaving.

Apart from cotton, the city is bustling with several tourism spots, mining industries, business centres, and much more. As the city is topographically situated more or less at the centre of the state, it is well-connected and easily accessible to the other parts of Maharashtra.

As the city remains to be industrially sound, a massive development can be seen in its real estate sector as well. Thus, Jalna seems to be an excellent location for commercial real estate investment.

Top Reasons to Invest in Jalna Real Estate 

Here are some reasons that make Jalna a promising city to invest in for commercial real estate.

  • Industry and Economy

One of the major sources of economy in Jalna city is the cotton industry. Apart from this, there is also the presence of various steel manufacturing units and agro-based industries based on a medium, small and large scale.

  • Tourist Spot

The city of Jalna is backed by many temples, shrines, and historic sites, which make it a popular tourist hubspot. Some popular tourist spot includes Jalna Fort, Ghanewadi Fort, Jamb Samartha, Moti Talaab, etc. 

  • Connectivity

Being situated at the centre of the state, the connectivity in Jalna city is quite good. Through railways, Jalna is connected to the various parts of Maharashtra, Andhra Pradesh, and Tamil Nadu. Marathwada Express passes through this junction. Also, the city is linked to some major cities through national highways which include Mumbai, Pune, Aurangabad, etc.

All these factors are encouraging commercial real estate investment in Jalna. 

Commercial Real Estate Investment Opportunities in Jalna

Take a look at some prominent locations in and around Jalna best suited foe commercial real estate investment:

  • Bhawani Nagar

Bhawani Nagar is a popular locality in the Jalna city of Maharashtra. It belongs to the Marathwada region of Aurangabad division. Some famous nearby localities adjacent to Bhawani Nagar include Millat Nagar, Sanjay Nagar, etc. 

The railway station nearby to Bhawani Nagar is Jalna railway station. So, this could be an excellent location for investing in a commercial property. The average price of a property in this location is 2,992 per sqft.

  • Badnapur

Situated about 18.8 km from Jalna, Badnapur is a town and tehsil in the Jalna district of Maharashtra state. This town is surrounded by Ambad Taluka towards South, Phulambri Taluka towards North, Jalna Taluka towards East, and Aurangabad Taluka towards West. 

The price of commercial property for lease or rent in Badnapur would cost around 1,980 per sqft.

Apart from these two locations, you can also consider buying a commercial property in Indewadi, Partur, Ambad, etc.

Things to Consider Before Buying a Commercial Property in Jalna

Before choosing any commercial real estate property in Jalna, make sure to consider these factors:

  • Infrastructure and Amenities

Infrastructure and the presence of basic amenities matter a lot when considering a commercial property purchase. Real estate properties with all the basic amenities available nearby have comparatively higher demand than other properties. Also, these properties have greater resale value in comparison to others.

  • RERA Authenticity

All real estate activities in Jalna are registered under RERA Maharashtra, according to the guidelines set by Real Estate (Regulation and Development) Act, 2016. This initiative was taken in order to prevent your property from all sorts of fraud and to boost the interest of real estate property investors.

So, before purchasing any property in Jalna, consider checking it and its builder’s authenticity by visiting the RERA portal.

  • Connectivity

Road connectivity is excellent in Jalna, as the city is situated at the centre of the state. Some major towns and cities of the state including Mumbai, Pune, Nagpur, Ahmednagar, etc., are well connected to this city through state highways. So, any commercial property purchased in this location will be of immense benefit.

Stamp Duty in Jalna

The stamp duty charges applicable in Jalna are as follows:

AreasStamp Duty Charges for MenStamp Duty Charges for Women
Municipal urban areas6% of the property’s market value 5% of the property’s market value
Areas under municipal council4% of the property’s market value 3% of the property’s market value 
Areas under gram panchayat 3% of the property’s market value2% of the property’s market value

Registration Charges in Jalna

For a detailed understanding of the registration charges in Jalna, consider the table given below.

AreasRegistration Charges 
Municipal urban areas1% of the property value 
Areas under municipal council1% of the property value 
Areas under gram panchayat1% of the property value

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

The city is currently undergoing some rapid developments in its infrastructure and economy. Moreover, the State and Central Government are taking enough initiative to boost growth in the state’s economy and its real estate sector.

One of the major developments includes the construction of a 179 km Jalna – Nanded Expressway by MSRDC. This Greenfield expressway is a proposed 4-lane highway, which will be connecting to the under-construction project 701 km Mumbai-Nagpur Expressway (Samruddhi Mahamarg). 

Upon successful construction of this expressway, the travel time between Mumbai and Nanded is reduced from 10 hours to 6 hours. So, this will encourage several other small, medium, and large-sized industries and businesses for a commercial setup in this region. This, in turn, will also motivate more and more real estate investments in this locality.  

Commercial Real Estate vs Other Asset Classes

Below mentioned are some mentionable differences between commercial real estate and other asset classes.

  • Commercial Real Estate vs Residential Real Estate

Usually, commercial real estate investment helps investors in generating higher returns than any residential property. Though investing in commercial properties does not attract several tax benefits, investing in commercial real estate is far less risky than investing in residential property.

  • Commercial Real Estate vs Bonds

In comparison to commercial real estate, bonds are generally considered more costly with lower credit risks. In fact, the investment quantum is also less in terms of bonds than in residential real estate. Also, bonds have higher liquidity than any commercial property.

Want to gain higher returns through bond investment? Take a look at our website’s homepage and choose the most suitable bond from our diverse portfolio.

  • Commercial Real Estate vs Gold

Gold tends to be more volatile in comparison to commercial real estate property. But gold investments are preferred because they have better liquidity and are considered one of the safest investment options. However, real estate investment tends to earn higher returns than gold.

  • Commercial Real Estate vs Stocks & Mutual Funds

In comparison to residential real estate, stocks, and mutual funds are known for yielding higher returns. But these are considered riskier than real estate investments because these are subject to change with market fluctuations. Thus, investors might have to bear the heavy loss. But real estate investment is pretty much safer than mutual funds and stocks.

Consider the table provided hereunder for a better understanding of the differences between commercial real estate and other asset classes based on returns, liquidity, risk, and volatility.

ParametersResidential Real EstateStocks & Mutual FundsGoldCommercial Real EstateBonds
ReturnsModerateHighModerateHighModerate
LiquidityLow High High Low Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High LowLow Low 
Ticket SizeHigh Varies LowHighVaries 

Steps to Invest in Commercial Real Estate in Jalna

Here are the steps to follow to start investing in commercial real estate in Jalna:

Step 1: Decide your budget for investing in commercial real estate and start looking out for properties.

Step 2: Shortlist a few locations based on your requirements, location, safety of the environment, and budget.

Step 3: Narrow down the list by visiting the property site along with your broker. You can also consult any professional land evaluator for analysing the prospects of your property.

Step 4: Finalise your property after verifying its authenticity through RERA portal.

Step 5: Book your property by making a complete payment which also includes stamp duty, registration charges, professional services, etc. 

Step 6: Proceed through the documentation process by appointing a legal assistant. Also, ensure to collect the encumbrance certificate, sales deed, and other documents.

Step 7: Finally, insure your property to protect it from any further damage.

Final Word

Jalna is an important city in Maharashtra, which is not only extensively known for its industrial setup but for its tourism industry too. The city has gained prominence in the development of various industrial and manufacturing units. This makes Jalna one of the most economically flourishing cities of Maharashtra state, thus encouraging investors to opt for commercial property in and around this city.

Frequently Asked Questions

What is the old name of Jalna?

Earlier, Jalna was known as Janakpur. But upon the demand of a wealthy Muhammedan merchant, the name was changed to Jalna, considering his occupation of Jalaha or weaver. This person has been a great benefactor of the place.

How far is Jalna from Mumbai?

You can easily reach Jalna from Mumbai via train. It takes approximately around 6 hrs 47 minutes to get down at Jalna from Mumbai via train.

Which is by far the biggest steel market in Maharashtra?

Jalna is undoubtedly the biggest hub of the secondary steel industry in India.

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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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