Guide for Jhansi Commercial Real Estate Investment
Jhansi is a city situated in Uttar Pradesh. It was earlier referred to as Balwant Nagar. Jhansi is also referred to as Gateway to Bundelkhand. This city is well connected by road, rail and airways. Jhansi has consequently seen a sudden rush of infrastructural and real estate development. There will be development of a Greenfield airport in the city. In 2011, Jhansi was selected among 98 cities to be a part of smart city initiative by the government of India.
Keep reading to understand how investing in commercial property in Jhansi might be a profitable venture.
Top Reasons to Invest in Jhansi Commercial Real Estate
Here are some of the reasons why you might want to invest in commercial real estate in Jhansi:
In terms of connectivity, Jhansi is really well-connected with the rest of the towns in Uttar Pradesh. This city is connected to other parts of the country by major highways and railways. Furthermore, the National Highway Development Project has been supporting development of this city.
Jhansi is located at the junction of four national highways namely NH 27, NH 39, NH 44 and NH 75. This city has its own station named Jhansi Junction which falls in the North Central Railway Zone. It also has an airport which is a military aviation base while Gwalior airport situated in Madhya Pradesh is the nearest airport. All this makes it a strategically well-connected city.
There are a number of large, medium and small industries active in Jhansi. Some of the large industries present in Jhansi are Bharat Heavy Electrical Ltd, Indian Hume Pipe Ltd, Bharat Petroleum Corporation, Baidyanath Ayurvedic Pvt Ltd etc. Small and medium industries include Sushil Stone Industry, Sanjay Stone Gramodyog, etc.
Furthermore, the governments of Uttar Pradesh and Madhya Pradesh are taking initiative to develop regions around Jhansi to make it an industrial hub. Therefore, investing in commercial real estate like factories and warehouses might be worth your money.
Commercial Real Estate Investment Opportunities in Jhansi
Here are some of the localities which might be apt for commercial real estate investment in Jhansi:
It is one of the well-known commercial localities in Jhansi. Connectivity is superb in this locality as autos and cabs are available quite easily. Even the railway station is in the vicinity. It is a great place and there are a large number of shopping places and restaurants present nearby making it an apt location for commercial real estate investment. Rate of commercial property in Sipri might range around ₹3500 to ₹30,000 per square foot.
- Civil Lines
It is one of the prime locations in Jhansi and is situated in the heart of the city. In terms of connectivity, it is just 800 metres from Jhansi-Gwalior and Jhansi-Shivpuri Highway. Even the railway station and bus stops are within walking distance. Shopping malls and movie theatres are present in close proximity.
Things to Consider Before Buying a Commercial Property in Jhansi
Let us check out a few points that you might want to keep in mind if you are considering buying a property in Jhansi:
- RERA Compliance
It is crucial that you confirm the authenticity of the property that you are purchasing. In Jhansi, you can check the authenticity of the builder and property by visiting the official website of RERA Uttar Pradesh.
RERA or Real Estate Regulatory Authority is a statutory body that promotes authenticity, accountability and transparency in the real estate sector of our country. This body started its journey after enactment of Real Estate Regulatory Authority Act of 2016.
- Location and Neighbourhood
At times you might find a property that has all the amenities which you are looking for and even fit your budget; but you still need to think rationally about the location of the property. Other than that,you should check infrastructure development like road conditions and ease of accessibility as well before confirming a property.
Stamp Duty in Jhansi, Uttar Pradesh
In Uttar Pradesh, stamp duty is levied as per the circle rates decided by the state government. Here are the rates of stamp duty applicable in Jhansi:
|Joint (Male + Female)||6.5%|
|Joint (Male + Male)||7%|
|Joint (Female + Female)||6%|
Registration Charges in Jhansi, Uttar Pradesh
When you are registering a property in Jhansi, it is mandatory to pay registration charges levied by the Uttar Pradesh state government. Here is the rate of registration charges applicable in Jhansi:
|Joint (Male + Female)||1%|
|Joint (Male + Male)||1%|
|Joint (Female + Female)||1%|
Jhansi Commercial Real Estate Sector: What’s the Forecast?
The Uttar Pradesh government is taking major steps to improve almost all of their municipal corporations so that their demand in terms of real estate investment rises. Jhansi has been selected by the central government for its Smart Cities mission. The best part is that the realty arm of Fast Moving Consumer Goods (FMCG) giant Emami is working towards developing the smart city project in Jhansi.
The company has about 1,200 acres in Jhansi that they are planning to develop in line with the central government’s smart city mission. This will bring in more investment from both commercial and residential real estate investors.
Commercial Real Estate vs Other Asset Classes
Below is the comparison between commercial real estate and other asset classes:
Commercial Real Estate vs Residential Real Estate
Commercial real estate is a safer investment option as lease agreements are for a longer tenure; in case of residential real estate, there is frequent tenant turnover.
In case of returns as well, commercial real estate is better when compared to residential real estate. However, when it comes to tax benefits, residential real estate is better in case you purchase the property on a home loan.
Commercial Real Estate vs Stocks & Mutual Funds
Stocks and mutual funds offer much better returns in comparison to real estate. However, in terms of consistency of returns, real estate is better than mutual funds and stocks. Stocks and mutual funds are much more volatile and risky.
Commercial Real Estate vs Gold
Real estate is much less volatile in comparison to real estate. In terms of returns, real estate offers you monthly returns which is not possible in case of gold. However, the quantum of investment for real estate is much higher in comparison to gold.
Commercial Real Estate vs Bonds
Bonds offer almost fixed and secure returns in comparison to real estate. Real estate however offers much higher returns in comparison to bonds. In terms of tax benefits as well real estate is better than bonds.
If you are interested in investing in bonds that offer you stable returns of around 9% to 11%, register on our platform today and start investing in a wide range of bonds available.
Following is the tabular representation of comparison between different assets as per returns, liquidity, risk, volatility and ticket size:
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Commercial Real Estate in Jhansi
Here are the steps that you can follow if you wish to invest in commercial real estate in Jhansi:
Step 1: Set an investment budget.
Step 2: Make a list of all the places which have all the amenities that you are looking for in your property.
Step 3: Visit every location on your list and confirm whether all the legal documents of the property are authentic. You can take the help of a broker in this regard.
Step 4: Select a property only after confirming whether the property adheres to the norms of RERA.
Step 5: Prepare the legal documents necessary for the purchase such as encumbrance certificate, sale agreement, title deed, etc.
Step 6: Complete the payment process. Make sure to pay the stamp duty and registration charges.
Step 7: Lastly, consider purchasing property insurance to safeguard yourself financially in case your property incurs any damages in future.
There are a large number of industries in Jhansi that are related to construction, transport and tourism, making it apt for commercial real estate investment. After agriculture, the beedi industry in Jhansi is the largest non-agricultural source of employment. Apart from that, development of connectivity and transport facilities are attracting more investment in both residential and commercial real estate.
Frequently Asked Questions
What are the documents required when purchasing a property?
The documents you require while purchasing a property are blueprint of building plan, certificate of completion, commencement certificate, permission for non-agricultural use of agricultural land if required, and NOC of builder.
What are the aspects that I should check before signing the agreement?
Before signing the purchase agreement, you need to double check base price, carpet area and all other facilities, payment mode, taxes applicable, schedule of possession and clause of penalty in case of delay of project.
What are the different types of commercial properties?
The different types of commercial properties that you can invest in are warehouses, storage facilities, retail spaces, restaurants, hotels, shared workspaces, etc.
What is stamp duty?
Stamp duty is a type of tax paid to the state government while purchasing a property. It is levied as per the rates set by the state government and acts as evidence of transfer of ownership.