Guide for Karol Bagh Commercial Real Estate Investment
Karol Bagh is a neighbourhood in the Central District of Delhi, which has a mix of residential and commercial areas. This place has one of the oldest shopping centres in Delhi and is widely famous for its shopping streets and markets. Western brands like Reebok, Pizza Hut, Skechers, Puma, etc. have their big-airconditioned showrooms here as well.
Ajmal Khan road is known for its cotton yarn, readymade and embroidered garment showrooms. Arya Samaj road, on the other hand, is known for second hand books. Moreover, Ghaffar road specialises in an array of products that include cosmetics, watches, cell phones, footwear and much more.
Let us understand how investing in commercial real estate in Karol Bagh might be profitable for you.
Top Reasons to Invest in Karol Bagh Real Estate
Here are some of the reasons why you should consider investing in Karol Bagh commercial real estate:
The Outer Ring Road and Blue line of Delhi metro connect Karol Bagh to the rest of the city. Delhi Kishanganj and Sarai Rohilla are the two railway stations in the vicinity of Karol Bagh. Additionally, Indira Gandhi International airport is approximately 15 km away. This area also has some well-known movie theatres that include Naz Cinema, Carnival Cinema, Xcentopia Networks, etc.
- Employment Hub
Karol Bagh is one of Delhi’s most important real estate markets. It serves as a centre for a number of coaching institutes that prepare students for government exams, especially IAS, which in turn attracts tenants and paying guests from different parts of the country.
As Karol Bagh is centrally located, it is in the vicinity of office hubs in Connaught Place, Noida and Gurgaon. Frequent buses and Blue line of Delhi Metro are the fastest transportation options here.
Commercial Real Estate Investment Opportunities in Karol Bagh
Here are some of the localities in Karol Bagh which might be apt for commercial property investment:
- Connaught Place
It is a prime locality as it is situated in the heart of Delhi. Connaught Place is well-connected to all the localities of Delhi NCR by local buses and metro. It is a popular shopping hub as well as the business centre of the capital.
Many international brands have their showrooms here as well. Connaught place has better infrastructure in comparison to other parts of Delhi. Rate of property here may range around ₹28,498 per square foot.
- Kashmiri Gate
Kashmiri Gate or Kashmere Gate is one of Asia’s biggest automobile markets. Thousands of people who want to deal in automobile spare parts and accessories in India as well as abroad visit this locality.
This locality has great connectivity due to easy availability of metro, railway and D.T.C buses. Therefore, investing in retail properties here might be really worth your money. Rate of property here may range around ₹20,833 per square foot.
Things to Consider Before Buying a Commercial Property in Karol Bagh
Here are some points that you might want to consider before investing in commercial real estate in Karol Bagh:
- RERA Verification
Real Estate Regulatory Authority is the apex body whose aim is to promote transparency and accountability in the real estate sector of India. This body came into being after enactment of Real Estate Regulatory Authority Act of 2016.
Every state and Union territory has its own RERA. If you want to check the authenticity of the builder as well as the property in Karol Bagh, you can do so by visiting the official website of RERA Delhi.
Researching about the property is a crucial step before opting for a property. As investing in commercial real estate is a long term investment therefore you need to find out what might help or hinder property prices in the future. The more time you dedicate to research the more it will be beneficial for your investment.
Stamp Duty in Karol Bagh
Stamp duty on a property in Delhi is charged on transaction value or circle rate, whichever is higher. Delhi has different rates of stamp duty for men and women. Here are the rates for the same:
|Category||Stamp Duty Rates|
|Joint (Male + Female)||4.5%|
Registration Charges in Karol Bagh
Registration charge is the fees which needs to be paid for registering the property that you purchase in your name. Here is the rate of registration charges applicable in Karol Bagh:
|Joint (Male + Female)||1%|
Karol Bagh Commercial Real Estate Sector: What’s the Forecast?
Karol Bagh is a prime locality with property prices ranging around ₹20,000 per square foot. This area is witnessing a healthy demand for rental accommodation. In the previous year, the area has shown an upward price appreciation of 8%. As there is an influx of thousands of businessmen and shoppers on a daily basis, there are plans to build multilevel car parking facilities near popular markets.
The steady returns on investment and strategic location of Karol Bagh are some of the vital factors that are transforming Karol Bagh into a promising investment option.
Commercial Real Estate vs Other Asset Classes
Here is the comparison of commercial real estate versus other asset classes:
Commercial Real Estate vs Gold
Real estate offers you the opportunity to earn passive rental income which is not the case if you invest in gold. Also, gold investments can be highly volatile as the returns depend on global macroeconomic factors.
Commercial Real Estate vs Residential Real Estate
You can earn better returns via commercial real estate investment when compared to residential real estate. Moreover, residential real estate investments can be risky as the tenants keep changing on an annual basis. Tax benefits are however better in case of residential real estate if you avail the property on a home loan.
Commercial Real Estate vs Bonds
Bonds offer stable returns in comparison to real estate however returns are higher in case of real estate. You get better tax benefits if you invest in real estate in comparison to bonds.
If you want to earn fixed returns of 9-11%, you can start investing in bonds. Register on our platform today and invest in top-rated bonds at no additional charges.
Commercial Real Estate vs Stocks & Mutual Funds
Stocks are much more liquid when compared to real estate. Investment in stocks and mutual funds has the opportunity to generate exceptionally high returns. However, the returns fluctuate based on market performance. In comparison, real estate offers much more consistent and stable returns.
Here is the tabular representation of comparison between different asset classes on the basis of their returns, liquidity, risk, volatility and ticket size:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Commercial Real Estate in Karol Bagh
Here are the steps that you can follow to start investing in commercial real estate in Karol Bagh:
Step 1: Fix your investment budget.
Step 2: Prepare a list of all the localities that have high development and commercial prospects.
Step 3: After shortlisting a few sites, visit every location to assess them in terms of infrastructure and amenities.
Step 4: Finalise a property as per your requirements. Prepare the necessary documents like sale deed, building plan, tax receipts, etc.
Step 5: Complete the payment process. Make sure to pay the stamp duty and registration charges.
Step 6: Lastly, consider purchasing an insurance plan for your property to safeguard yourself financially in case your property incurs any damages.
Karol Bagh is one of the most expensive areas to invest in Delhi. This locality has transformed from being a small village to an upmarket area with loads of high end shops. It is like a go-to place for restaurants, cafes and food joints and is home to one of Central Delhi’s most famous marketplaces.
This makes some properties here worth billions of rupees. Investing in commercial real estate in Karol Bagh might be really worth your money.
Frequently Asked Questions
Do stocks require higher quantum of investment in comparison to real estate?
No, real estate requires a massive quantum of investment in comparison to stocks. There is no minimum limit to start investing in stocks in India. It is even possible to buy stocks for less than ₹10.
What are the different types of commercial properties?
The different types of commercial properties that you can invest in are warehouses, retail stores, shared workspaces, hotels and restaurants, etc.
Why is it necessary to register a property?
It is essential to register the transaction of an immovable property because, with registration, it becomes a permanent public record. Only if the deed is registered can the title or interest be acquired.
Do I need to pay stamp duty if the property is transferred or is a gift?
Yes, you will need to pay stamp duty on gift deeds as well. However, in a few states like Rajasthan, Haryana and Delhi, concession of 1 to 2% is given to female transferors.