Guide for Jalandhar Commercial Real Estate Investment
Jalandhar is the third-most populous city in Punjab. This city lies very close to Grand Trunk Road. It makes Jalandhar accessible from all nearby cities and other major Indian cities.
Jalandhar is a prime industrial region for manufacturing sports products, leather goods, glass and furniture manufacturing. This city is also a significant exporter of leather goods and furniture items to nearby cities. Jalandhar also has the most prominent Non-resident Indian (NRI) belt in Punjab, and their remittance boosts the city’s economy.
Jalandhar is progressing to become another smart city in India. The primary focus is on improving Jalandhar’s air quality index and infrastructure. As a result, this city’s real estate market is thriving.
Read along to learn the benefits of investing in commercial real estate in Jalandhar.
Top Reasons to Invest in Jalandhar Commercial Real Estate
Here are a few reasons to consider investing in commercial real estate in Jalandhar.
Growing Smart City
Jalandhar finds its place in the second phase of the Smart City Project among Indian cities. To achieve this goal, the Municipal Corporation of Jalandhar has received funds of ₹200 crore.
This city project attempts to focus on entrepreneurship and industrial growth in Jalandhar. IT industries will develop to fill the gap between this technology and industry. Different training centres will also help the development of juvenile skills.
It will increase people’s demand for office spaces and warehouses in Jalandhar. One can earn high returns by investing in commercial properties in Jalandhar.
Source of Passive Income
Commercial real estate opens scope to earn higher returns without much hassle. As a result, one can earn substantial gains by investing here without undergoing the struggles of a corporate job. Therefore, a property investment becomes an excellent source of passive income for investors.
Location and connectivity
Jalandhar lies near the Grand Trunk Road; this makes Jalandhar accessible from all major Indian cities. Furthermore, its vital road and rail network makes Jalandhar easily reachable from Jhansi, Bhopal, Gwalior, and Kolkata.
Adampur Airport is nearest to Jalandhar and allows domestic flights from Jaipur, Delhi and Mumbai. Sri Guru Ram Dass Jee International Airport in Amritsar connects Jalandhar internationally.
Commercial Real Estate Investment Opportunities in Jalandhar
Here are some prime locations in Jalandhar where you can invest in commercial real estate:
Model Town is a posh locality in Jalandhar. This place also hosts several restaurants, malls, cinema halls and departmental stores. Model Town offers a luxurious life to residents here.
Therefore, you can earn good returns by investing in commercial properties in this region. Property prices in Model Town vary from ₹70 lakhs to ₹8 crore.
It is another prime locality in Jalandhar to invest in commercial properties like shops, office places and showrooms. Property prices in Central Town vary approximately from ₹35,000 to ₹1.5 crore.
Things to Consider before Investing in a Commercial Property in Jalandhar
Here are a few points you need to consider when investing in commercial real estate in Jalandhar:
A lease is a legal contract that binds a tenant and an owner to let out a property. Every investor must thoroughly understand clauses in the lease structure before entering into agreement. Consider taking help from legal advisors to comprehend lease conditions easily . It will help you know all risks involved in the transaction before you go ahead with the agreement.
Infrastructure plays a pivotal role in attracting tenants to your commercial property. For example, if you invest in properties like office spaces or hotels, ensure the building has adequate elevator service. You must also watch out for facilities like washrooms, parking lots and proper ventilation in every commercial property.
The Real Estate (Regulation and Development) Act of 2016 led to the formation of a statutory body, The Real Estate Regulatory Authority (RERA), in every state. This body monitors and maintains transparency and accountability in the real estate industry.
Every investor in Jalandhar must register themselves and their properties on the RERA portal of Punjab. Therefore, before investing in commercial properties in Jalandhar, you can check their authenticity via this portal.
Stamp duty in Jalandhar
The table below displays the stamp duty applicable to commercial properties in Jalandhar.
|Joint (Male + Male)||7%|
|Joint (Female + Female)||5%|
|Joint (Male + Female)||6%|
Registration Charges in Jalandhar
The registration charges applicable to commercial real estate in Jalandhar are as follows:
|Joint (Male + Male)||1%|
|Joint (Female + Female)||1%|
|Joint (Male + Female)||1%|
Jalandhar Commercial Real Estate Outlook
Jalandhar is one of the important cities hosting manufacturing industries of sports goods and furniture. In addition, this city also houses industries for automobile parts, surgical instruments, hand tools, leather, rubber goods and printing.
Recent years have witnessed the popularity of IT companies in Jalandhar. Companies like Dell and Microsoft have set up their offices on this land. Several townships are also springing up here. Jalandhar also has the most significant number of hospitals in Asia.
These factors highlight the potential opportunity to earn high returns by investing in commercial properties in Jalandhar.
Commercial Real Estate vs Other Asset Classes
Let’s take a look at the differences between commercial real estate and other asset classes:
Commercial Real Estate vs Residential Real Estate
Commercial properties are more expensive than residential properties. As a result, an investor can earn higher returns by investing in commercial properties. However, due to their sky-scraping prices, commercial properties have higher risks.
Commercial Real Estate vs Stocks and Equity Mutual Funds
As stocks and equity mutual funds are subject to market volatility, you need in-depth knowledge of this marketplace to make profits reliably. Without such understanding, you could incur substantial financial losses by investing in stocks and equity mutual funds. On the other hand, commercial real estate returns are stable and less risky than stocks and equity mutual funds.
Commercial Real Estate vs Gold
You can earn higher returns with commercial real estate than gold. However, buying and selling gold is much easier than commercial properties because gold has a more liquid market than commercial real estate.
Commercial Real Estate vs Bonds
Bonds and commercial real estate are excellent sources of passive income. However, bonds have a more liquid market than commercial real estate. In addition, finding tenants for commercial real estate takes more time than selling or purchasing bonds.
The table below compares the above asset classes based on their liquidity, volatility, ticket size, and risks.
|Parameters||Commercial Real Estate||Stocks and Equity Mutual Funds||Gold||Residential Real estate||Bonds|
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Steps to Invest in Commercial Real Estate in Jalandhar
Here are the specific steps to follow for investing in commercial real estate in Jalandhar.
Step 1: Finalise your purpose and budget for investing in commercial property in Jalandhar.
Step 2: Conduct sufficient research on potential locations and sites that have the potential to develop in future.
Step 3: Shortlist a few sites that suit your budget.
Step 4: Conduct on-site research to analyse the ground situation closely. You may also consult real estate consultants to know the prospects for developing these sites.
Step 5: Finalise a commercial property that aligns with your budget and investment goals.
Step 6: Check official documents like Property Assessment Extract, Title Deed, Foundation Certificate, etc.
Step 7: Complete the stamp duty and registration formalities to transfer the property in your name.
Step 8: You need to pay service fees to brokers or real estate consultants if you have availed their services.
Being a major exporter of several goods and a potential smart city, Jalandhar offers excellent opportunities in the real estate market. You can find ample opportunities to invest in shops, warehouses, hotels and office spaces in Jalandhar. After investing, consider covering your new property with an insurance policy. It will help protect you and your finances in case of damage to your commercial real estate.
Frequently Asked Questions (FAQs)
What documents should I get after purchasing a commercial property in India?
An investor will receive several documents after purchasing commercial property in India. These documents include Khata Certificate, Mother Deed, Betterment Charges Certificate, Sale Deed, and Encumbrance Certificate. These documents may vary from one place to another.
What are the major industries in Jalandhar?
Some popular industries in Jalandhar are auto parts, sports goods, surgical instruments, real estate, hand tools, furniture and leather goods.
What areas in Jalandhar offer good scope for commercial real estate investment?
Central Town, Modern Town, 66 Feet Road, Basti Bawa Khel, and Jalandhar Nakodar Road are significant places to invest in commercial real estate.
What are the advantages of investing in commercial properties?
Commercial properties act as an excellent source of passive income, offering high returns. They also remain open for limited operational hours, which means no midnight or off-time calls. And more importantly, lease terms for commercial properties are more flexible than residential ones.