Guide for Jamnagar Commercial Real Estate Investment

Jamnagar is the fifth largest city in Gujarat. It has noteworthy fame as an industrial town with two oil refineries one of which is the world’s largest. There are several large, small and medium-scale industries in the city. These industries can be categorised into metallurgy, mining, chemical, handloom and electrical ware. 

Let us understand how investing in commercial real estate might be a profitable venture in Jamnagar. 

Top Reasons to Invest in Jamnagar Real Estate

Here are some of the reasons why you might want to invest in commercial real estate in Jamnagar:

  • Industries

Jamnagar is the largest producer of brass items in the country. It is also known as the World’s Oil City as it is home to the world’s biggest oil refinery. This city is also a notable player in the worsted textile industry in India. The city is also famous for production and export of the traditional Bandhani cloth. Jamnagar also has sizeable reserves of bauxite, therefore investing in warehouses or factories might be a profitable venture.

  • Tourism

Jamnagar is one of the famous tourist destinations in Gujarat. Places like Bhujio Kotho, Bohra Hajira, Willingdon Crescent, Darbargadh, Lakhota Palace, and Pratap Vilas Palace are some of the popular tourist spots here. Thousands of devotees visit the Bala Hanuman temple every year. Therefore, investing in retail and hospitality might be a great option if you are planning to invest in commercial real estate.

Commercial Real Estate Investment Opportunities in Jamnagar

Here are some of the localities in Jamnagar which might be worth commercial real estate investment:

  • Khodiyar Colony

This locality has great transportation facilities. Jamnagar railway station and airport is in the vicinity. There are a number of big shopping malls present in the locality. The roads are well maintained and there is enough space for parking available. Therefore, investing in commercial real estate in this locality might be a highly profitable venture. Rate of commercial plots here ranges around ₹11,000 per square foot.

  • Patel Colony

Patel Colony is a prime locality. It is well-connected via public transportation like trains and buses. A number of international restaurant chains like Mcdonald’s and Pizza Hut are present here. Properties here are sold at quite a high price. Rate of commercial property in the area may range around ₹22,142 per square foot.

Things to Consider Before Buying a Commercial Property in Jamnagar

Here are some of the things that you might want to keep in mind if you wish to buy a commercial property in Jamnagar:

  • Location and Neighbourhood

You might get a property with all the amenities that you were looking for and it fits your budget as well. However, ease of accessibility is not present. In such a situation you might have to look for another property as accessibility is an essential point when you are investing in commercial property. 

You should even consider the neighbourhood as that is also a considerable factor. If you opt for an office space where many other offices are situated, you might be able to generate more returns from your investment. 

  • RERA Authentication

The Real Estate Regulatory Authority (RERA) is a statutory body whose aim is to promote accountability and transparency in the real estate sector of India. This body came into existence after enactment of the Real Estate Regulatory Authority Act of 2016. Before purchasing a property in Jamnagar, you can check the authenticity of the builder as well as the developer by visiting the official website of RERA Gujarat.

Stamp Duty in Jamnagar, Gujarat

Stamp duty is a tax which is levied by state government at the time of property registration. This usually varies from one state to another. Here are the rates that are applicable in Jamnagar:

Stamp DutyPercentage
Basic rate of stamp duty3.5%
Surcharge of 40% on basic rate1.4%
Total stamp duty payable on sale of immovable property4.9%

Registration Charges in Jamnagar, Gujarat

Paying the registration charge is an essential step when it comes to purchasing a property. The registration process helps in protecting the property from legal hurdles in future. Rate of registration charge is as follows:

ParticularsPercentage
Male1%
FemaleNo registration fee applicable
Joint (Male + Female)1%
Joint (Female + Female)No registration fee applicable

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

Latest price movements in Jamnagar are quite positive for investors and end-users at the moment as the property market is moving in the right direction. At present, the starting price of properties in Jamnagar is ₹818 per square foot while the average price of properties is ₹3,035 per square foot. Therefore, both buying and selling properties in Jamnagar are profitable at the moment.

Additionally, legislation has been passed in Gujarat assembly to regularise all unauthorised real estate construction across Gujarat. This will work in favour of all the real estate investors as they will not have to face any legal implications from now on as all constructions will have to adhere to RERA regulations. Therefore, investing in commercial real estate in Jamnagar will pose no threat in terms of legality.

Commercial Real Estate vs Other Asset Classes

Here is the comparison between commercial real estate versus other asset classes:

Commercial Real Estate vs Residential Real Estate 

Commercial real estate is less risky when compared to residential real estate as the lease agreement is for a longer period. However, in case of tax benefits, residential real estate is better if the home is taken on a bank loan. In terms of returns, commercial real estate offers better returns in comparison to residential real estate.

Commercial Real Estate vs Gold

Gold is much more volatile and risky when compared to real estate. In case of real estate, you get an opportunity to earn returns every month which is not possible in case of gold. However, real estate comparatively has less liquidity than gold.

Commercial Real Estate vs Bonds

You get better tax benefits if you invest in real estate. However, bonds are less risky than real estate investments; although the returns are low, they are quite stable. 

If you are someone who is willing to invest in an almost risk-free asset and earn fixed returns between 9 to 11%, register on our platform today and start your investment journey.

Commercial Real Estate vs Stocks & Mutual Funds

Real estate offers much more consistent returns in comparison to mutual funds and stocks. However, returns are much higher if you invest in stocks and mutual funds. In terms of tax relief as well stocks and mutual funds are better than commercial real estate.

Here is a tabular representation of comparison between different asset classes as per their returns, liquidity, risk, volatility and ticket size:

ParametersCommercial Real EstateStocks & Mutual FundsGoldResidential Real EstateBonds
ReturnsHighHighModerateModerateModerate
LiquidityLow High HighLow Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High Low Low Low 
Ticket SizeHigh Varies LowHighVaries 

Steps to Invest in Commercial Real Estate in Jamnagar

Here are the steps that you can follow if you wish to start investing in commercial real estate in Jamnagar:

Step 1: Set an investment budget. 

Step 2: Prepare a list of the locations which have all the required facilities. 

Step 3: Plan a field visit to each location to assess them in terms of infrastructure and amenities. 

Step 4: After finalising a location, prepare the necessary documents such as title deed, sale agreement, building plan, etc. 

Step 5: Complete the payment process. Make sure to complete the registration charges and stamp duty formalities. 

Final Word

Known for its industries and tourism, Jamnagar can be a great choice if you are planning to invest in commercial real estate. If you are planning to invest in a workshop, Shankar Tekri, M P Shah Udyognagar and GIDC Phase-III might be some great industrial estates worth investing in. However, as commercial real estate is more prone to damage in comparison to residential real estate, it might be a wise decision to opt for an insurance policy.

Frequently Asked Questions

What are the different types of commercial property available in the market?

The different types of commercial property include office spaces, retail spaces, hospitality centres, industrial spaces, warehouses, storage facilities, etc.

How to pay stamp duty and registration charges offline in Gujarat?

You can pay stamp duty and registration charges offline in two ways. You can pay the stamp duty and registration charges by visiting a bank or a franking centre. You can also contact the authorised stamp seller and pay the stamp duty and registration charges while purchasing stamp paper.

Do I need to pay stamp duty for transfer of ancestral property in Gujarat?

The rights of ancestral property can be transferred with a stamp paper of ₹300. In case of such a property transaction, no stamp duty is applicable in Gujarat.

What documents are necessary for property registration in Gujarat?

Documents necessary for registering a property in Gujarat include proof of ownership rights, an input sheet which contains details of both the parties with signature, identity proof of buyer and seller, address proof, application form no. 1 in case it falls under section 32A of Gujarat Stamps Act of 1958 and original power of attorney if applicable.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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