Guide for Haridwar Commercial Real Estate Investment
Haridwar is the second-largest city in the state of Uttarakhand. It is a popular religious tourist destination; during the Kumbh Mela, millions of devotees, pilgrims and tourists congregate in Haridwar. Currently, it is developing beyond its religious aspect and transforming into an industrial estate with the help of multiple initiatives launched by the State Industrial Development Corporation of Uttarakhand (SIDCUL).
This city is home to Bharat Heavy Electrical Limited (BHEL) as well as other affiliated ancillaries. Let us understand how investing in commercial real estate in Haridwar might be a profitable venture.
Top Reasons to Invest in Haridwar Real Estate
Here are the top reasons why you would want to invest in real estate in Haridwar:
The city’s infrastructure has been witnessing massive development, which is offering better connectivity to major locations around the country. The government is launching various initiatives to construct roads and highways that will connect Haridwar to major city hubs. The Uttarakhand metro rail operations are in full swing to offer easy commute to the residents. Therefore, there are high chances of getting good returns on investment if you invest in Haridwar.
- Industrial Growth
The State Infrastructure and Industrial Development Corporation of Uttarakhand has developed world Integrated Industrial Estate (IIE) in Haridwar to promote economic and industrial development. Many non-residents plan to invest in Holiday Homes here. Bharat Heavy Electrical Limited has also established its manufacturing hubs in this city. Other than this, many FMCG companies are functioning here with an investment of around ₹2500 crore.
Commercial Real Estate Investment Opportunities in Haridwar
Here are a few locations in Haridwar which are suitable for commercial real estate investment:
Located near the Delhi-Haridwar national highway, it has an industrial estate which is over 2034 acres. Large companies have set up their manufacturing units in Sidcul. Around 400 big industrial units like Bajaj, Havells and HUL are located here. It also has Patanjali Yog Peth and Bharat Heavy Electrical Limited in its vicinity. Rate of commercial property here can range around ₹649 to ₹12,558 per square foot.
- Har Ki Pauri
It is a great location which is in close proximity to the National Highway 58, Rishikesh Road. It is one of the ancient pilgrimage centres in India; therefore, it is home to a huge number of dharamshalas, hotels and resorts. Therefore, it is an apt location worth investing in. Rate of commercial property in Har Ki Pauri can go as high as ₹75,556 per square foot.
Things to Consider Before Buying a Commercial Property in Haridwar
Here are some points that you should keep in mind before purchasing a commercial property in Haridwar:
- RERA Authentication
The Real Estate Regulatory Authority (RERA) is a statutory body that promotes accountability and transparency in the real estate sector of India. It was formed after the enactment of the RERA Act of 2016.
Each state has its own RERA portal where you can check the authenticity of a property and its builder. Therefore, before investing in a property in Haridwar, make sure to check whether it adheres to the RERA norms. You can visit the official website of RERA Uttarakhand to do so.
Check the proximity of the location to the common roads and highways. Also, check how far the property is located from prime expressways. Closeness to airport and other important parts of the city is also critical for businesses in Haridwar. Having access to ports is advantageous for companies.
Stamp Duty in Haridwar, Uttarakhand
Whenever a property is sold or bought in Uttarakhand, property buyers have to deposit a fixed amount of stamp duty to the state government. The applicable stamp duty rates are as follows:
|Joint application (Male + Female)||4.37%|
|Joint application (Male + Male)||5%|
|Joint application (Female + Female)||3.75%|
Registration Charges in Haridwar, Uttarakhand
Payment of property registration charges in Uttarakhand ensures that the transaction is registered in the official government records. Following is the rate of registration charge applicable:
|Joint application (Male + Female)||2%|
|Joint application (Male + Male)||2%|
|Joint application (Female + Female)||2%|
Haridwar Commercial Real Estate Sector: What’s the Forecast?
Haridwar is home to heavy engineering and manufacturing complexes. A large number of people visit this location every twelve years for Kumbh Mela and every six years for Ardh Kumbh Mela. It is a pilgrim destination and therefore is apt for commercial real estate investments, especially hotels and resorts.
Compared to past years, real estate in Haridwar has progressed wonderfully. There are a number of shopping malls, restaurants and businesses present here. Therefore, you can invest in commercial real estate in Haridwar and earn great returns on investment.
Commercial Real Estate vs Other Asset Classes
Here is the comparison between commercial real estate versus the other assets classes:
Commercial Real Estate vs Bonds
Bonds are relatively safer in comparison to commercial real estate investments. Moreover, they offer stable returns and are highly liquid investment options.
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Commercial Real Estate vs Gold
Real estate investment is ideal for long-term; however, gold is ideal for both long-term as well as short term. Gold is, however, subject to the risk of getting stolen. Moreover, the returns may fluctuate as gold prices depend on global market sentiments.
Commercial Real Estate vs Residential Real Estate
A residential property taken on a home loan attracts better tax breaks than commercial property. However, commercial property offers better stability as the lease agreement is for a longer tenure, and the rental income is higher.
Commercial Real Estate vs Stocks & Mutual Funds
Stocks offer much better returns which are capable of beating inflation. This is, however, not the case in real estate. However, commercial real estate investment offers passive rental income every month.
Below is a tabular representation of comparison between different assets on the basis of returns, liquidity, risk, volatility and ticket size:
|Parameters||Commercial Real Estate||Residential Real Estate||Gold||Stocks & Mutual Funds||Bonds|
Steps to Invest in Commercial Real Estate in Haridwar
Here are the steps that you can follow if you want to start investing in commercial real estate in Haridwar:
Step 1: Decide your budget & make a list of locations that fulfil your investment requirements.
Step 2: Plan a field visit to each of the locations and assess them based on infrastructure, connectivity, amenities, etc.
Step 3: After finalising a property, prepare the official documents like sale deed, agreement, tax receipts, etc.
Step 4: Complete the payment process. Make sure to complete the registration and stamp duty formalities as well.
Step 5: Lastly, consider purchasing an insurance policy for your property to safeguard your finances in case your property incurs any damage in the future.
As a renowned tourist location in the hills, Haridwar should not be underestimated in terms of the types of properties available here. Haridwar’s real estate market is evolving as property buying and selling is becoming quite flexible here. Uttarakhand is becoming an investment-friendly state with no restrictions in terms of size of the plot. The state government is further encouraging women to buy properties in the state.
Frequently Asked Questions
Do I get tax benefits on paying stamp duty?
You are eligible for a tax deduction of up to ₹1.5 lakh on stamp duty as well as registration charges on purchase of new property or construction of a house. This benefit is, however, available for only a single self-occupied property.
What taxes do I need to pay before buying a property?
The taxes that you need to pay before buying a property are TDS or tax deducted at source, service tax and stamp duty.
What is property registration?
It is the procedure of registration of documents in relation to the sale, transfer, lease or any other method of disposal of immovable property. It is mandatory according to section 17 of the Indian Registration Act of 1908. Once you register a property, you become its lawful owner.
How do banks evaluate property for insurance?
Property valuation for insurance is done by multiplying the built-up area of property with cost of construction per square foot. It is the usual method that banks follow.