Guide for Ramagundam Commercial Real Estate Investment
Ramagundam is a city in Peddapalli district of Telangana. It is the 6th most populous city in the state. This city is located at a distance of 225 km from state capital Hyderabad. Ramagundam houses one of India’s largest thermal power stations. Apart from these, there are cement and fertiliser companies as well. It is well connected via TSRTC and MSRTC buses.
State Highway 1 passes through this city. The city has its own railway station as well and the nearest airport is the Rajiv Gandhi International Airport in Hyderabad. Let us find out how investing in commercial real estate in Ramagundam might be a profitable venture.
Top Reasons to Invest in Ramagundam Real Estate
Here are some of the reasons why you should invest in Ramagundam real estate:
Ramagundam is home to beautiful local sights and attractions like Vemulawada, Lower Manair Dam, Elgandal Fort, Sri Raja Rajeshwara Swamy Temple, Kondagattu Anjaneya Swamy Temple etc. Therefore, investing in retail and hospitality properties in this city might offer you great returns on investment.
Ramagundam is home to one of India’s largest thermal power stations along with many other thermal power plants. Other than that, there are cement factories and fertiliser factories as well in the Ramagundam Industrial Area. Therefore, investing in factories and warehouses might be a profitable venture in Ramagundam.
Commercial Real Estate Investment Opportunities in Ramagundam
Here are some of the locations in Ramagundam that might be worth commercial real estate investment:
This locality has great connectivity as public transportation like buses and trains are easily available. Even the national highway is in close proximity. There are several shops and malls within a 2 to 3 kilometre radius of the area. It is an industrial area therefore a number of factories and companies are also present here. Rate of commercial property here may range around ₹7,143 per square foot.
Jyothinagar is very close to the city’s railway station. It is situated right next to the industrial area. This area is in the vicinity of local markets. All other basic facilities are also available easily in the locality. Parking space is also available. Rate of property here may range around ₹26,923 per square foot.
Things to Consider Before Buying a Commercial Property in Ramagundam
Here are some of the points that you might want to keep in mind before purchasing a commercial property in Ramagundam:
- RERA Authentication
Before purchasing a property you should check the authenticity of the property as well as the builder. In order to check this, you can visit the official RERA Telangana website.
RERA or the Real Estate Regulatory Authority is a statutory body whose aim is to promote accountability and transparency in the real estate sector. This body came into force after enactment of the Real Estate Regulatory Authority Act of 2016.
- Construction Quality
It is essential to check the construction quality of a commercial property so that there remains no question of damage in the near future. For this, you can check the strength of the walls, type of colour used, type of flooring used, standard of bathroom fittings, window frames, etc. Visit the site if the property is under construction to check whether all the materials that are being used during construction are up to the mark.
Stamp Duty in Ramagundam, Telangana
As per Indian Stamp (Telangana Amendment) Act 2021, it is mandatory for every citizen of Telangana to pay stamp duty to the state government on purchasing any property. Here are the rates applicable in Telangana:
|Sale agreement with possession||4%|
|Sale agreement without possession||0.5%|
|Sale agreement with Grade Point Average||5%|
|Sale of semi-furnished flat||4%|
Registration Charges in Ramagundam, Telangana
In Telangana, the applicable registration charges differ from one property to another. Rate of registration charges in Telangana is available in the table below:
|Sale agreement with possession||0.5% of property’s total worth (minimum of ₹5000 and maximum of ₹20,000)|
|Sale agreement without possession||0.5% of property’s total worth (minimum of ₹5000 and maximum of ₹20,000)|
|Sale agreement with Grade Point Average||₹2,000|
|Sale of semi-furnished flat||0.5%|
Ramagundam Commercial Real Estate Sector: What’s the Forecast?
According to a recent report, the commercial real estate sector will be in fine balance in 2023 in Telangana. Although the global recession had several considerable repercussions on the city’s commercial office market, it will improve this year.
The government is also coming up with a land pooling scheme which will further improve the scenario for commercial real estate investors. Plans have been put in place for expansion of the Hyderabad metro rail project. This expansion will cost around ₹6,250 crore and this will further attract more real estate investors.
Commercial Real Estate vs Other Asset Classes
Following is the comparison between commercial real estate and other types of asset classes:
Commercial Real Estate vs Bonds
Commercial real estate investments offer higher returns than bonds. However, bonds are low-risk investment options that offer much more stable returns in comparison to real estate. They are also highly liquid investment options.
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Commercial Real Estate vs Residential Real Estate
Commercial real estate offers higher returns in comparison to residential real estate. In case of residential real estate, the tenants keep changing annually which acts as a risk factor which is not the case with commercial real estate. However, tax benefits are greater in case of residential real estate in case the property is availed on a home loan.
Commercial Real Estate vs Stocks & Mutual Funds
Real estate offers much more consistent returns in comparison to stocks and mutual funds. Although returns are much higher in case of stocks and mutual funds, such investments are highly risky and volatile.
Commercial Real Estate vs Gold
Real estate offers you the chance to earn passive income every month which is not possible in case of gold. However, the quantum of investment is much higher in the case of real estate in comparison to gold.
Here is the tabular representation of comparison between different types of assets as per 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 Ramagundam
Here are steps that you can follow if you want to start investing in commercial real estate in Ramagundam:
Step 1: Decide on your investment budget.
Step 2: Make a list of all the locations which have the amenities and infrastructure that you are looking for.
Step 3: Plan a field visit to each of the sites to assess them minutely.
Step 4: Once you finalise a property, prepare the official documents such as building plan, encumbrance certificate, tax receipts, etc.
Step 5: Complete the payment process. Make sure to pay the stamp duty and registration charges as well.
When you are purchasing a commercial property, it is important to keep all the perspectives in mind. As commercial properties like factories and warehouses are more prone to damage, it is better if you plan for that while purchasing the property.
You can opt for an insurance policy for your property so that you do not have to worry about the finances if there is any damage to your property that requires immediate repair.
Frequently Asked Questions
What documents do you need to check if you are buying a resale property?
The documents that you will need to check before buying a resale property are sale deed, occupancy certificate, encumbrance certificate, latest tax receipts, possession certificate and building plan approval.
What documents do I need at the time of property possession?
At the time of possession, you will need the possession letter, original stamp duty and registration payment receipt, NOC from the concerned body, original copies of the chain of title agreement and building plan approval, proof of payment of property taxes and maintenance charges till the date the property is handed over to you.
How to register a property?
To register your property, you need to pay a registration charge and need to get it recorded at a sub-registrar’s office of that particular jurisdiction area. Nowadays, in most states, the process can be done online.
What is the difference between leasehold property and freehold property?
In case of leasehold property, the ownership belongs to the local authority or government, but the individual owner can sell the property in case it is registered. However a freehold property belongs to the legal owner and he/she can sell, lease or rent the property.