Guide for Jammu Commercial Real Estate Investment

11 min read • Updated 12 May 2023
Written by Anshul Gupta
Guide for Jammu Residential Real Estate Investment

Jammu is one of the most beautiful cities in India and a hotspot for tourists internationally. Situated in the Union Territory of Jammu and Kashmir, the city is surrounded by the Greater Himalayas range of mountains with numerous temples and shrines scattered in its valleys.

This city is the main business hub of the Jammu district. Besides its vibrant tourism industry, it has many small and large industries. Jammu is India’s largest producer of apples, walnuts and cherries. Apple production in Jammu amounts to more than 70% of the total production in India.

Pashmina wool and the finest Biovoltine silk are key products that set the handloom and textile sector of Jammu apart. This industry employs more than 43,000 weavers in the Union Territory (UT) to produce the best quality shawls, carpets and other products.

The infrastructure development and real estate market in Jammu has also been booming in recent years with the rest of the economic sector. Hence, there are many emerging businesses and industries in this city. If you want to invest in a commercial property in Jammu, read through the following sections.

Top Reasons to Invest in Jammu Real Estate

Real estate investment is an expensive venture; thus, it is important to know the reasons for buying a commercial property in Jammu.

  • A Booming Agriculture Industry

Jammu has a progressive agriculture industry tapping into various products like spices, fruits, flowers, etc. This region in India is known for its saffron production globally. The horticulture sector in this city mass produces several fruits and nuts like pears, apples, plums, walnuts, apricots, almonds, etc. These fruits and nuts have a high value in the market, and hence agriculture-related industries have high growth prospects here.

  • A Tourism Hotspot

Jammu has a very active tourism sector due to its breathtaking locations and extreme weather conditions. It is reported by the Directorate of Information and Public Relations (DIPR) that Jammu had a tourist footfall of 1.62 crores in the year 2022, approximately. 

With a booming tourism sector, there are plenty of lucrative commercial opportunities in Jammu. Hence, investors can earn a steady income from commercial properties here.

  • Local Business Hub

Jammu not only produces high-value agro-based products but also is a global market for various other products. Saffron produced in Jammu is exported all over the world, followed by apples and other fruits.

In addition, Jammu also produces a unique style of textile items like shawls, rugs and other handicraft items. Another popular sector in this city is willow production. Several leading sports equipment companies in this region are involved in exporting willow for cricket bats. 

  • Good ROI

Jammu’s industries have the potential to grow further and create better opportunities for its commercial real estate sector. Hence you can expect a good return on investment (ROI) if you buy commercial properties such as shops, industrial units and warehouses in Jammu.

Commercial Real Estate Investment Opportunities in Jammu 

The following localities in Jammu are a few good options for investing in commercial real estate in this city. Check out the details about these localities and choose an area as per your needs.

  • Gandhi Nagar

This area in Jammu is densely populated, with a strength of 16,270 people as of 2020. Thus the infrastructure in this locality is rapidly developing. Due to the high demand for commercial spaces here, your chances of earning a substantial income from rent are quite high.

In addition, this locality is just 2.5 km away from Jammu Airport and 1.5 km away from the nearest railway station, which is Jammu Tawl Station. The average value for properties in Gandhi Nagar in Jammu is approximately ₹50 lakh.

  • Sainik Colony

This is a busy locality in Jammu with convenient road networks around the rest of the city. The closest major highway to this location is NH-144A, while the nearest railway station is the Barl Brahman Railway Station, located just 3.49 km away from Sainik Colony. The population of this area is around 18,974 people. Thus, you can expect a high demand for commercial spaces here. 

The average cost of commercial property in this locality is around ₹50 lakh.

Things to Consider before Buying a Commercial Property in Jammu

If you want to buy a commercial property in Jammu, you should consider checking the factors below to ensure a profitable investment.

  • Infrastructure and Amenities

Demand for commercial property highly depends on the facilities and infrastructure present around the property. Real estate with the best quality amenities gets higher demand from people as compared to other properties.

  • Developer’s Experience

The property developer must have sufficient experience and a good reputation. A developer’s reputation can affect the returns and demand for commercial property. Real estate developed by experienced builders is more trusted and carries higher market demand. Hence, you should look for properties built by experienced builders.

  • Connectivity

Your commercial property should be connected to the rest of the city through public transportation and proper road networks. Commercial properties that are conveniently located near dense residential areas and provide excellent connectivity have the best prices.

  • RERA Authentication

Real estate activities are regulated by the Real Estate Regulatory Authority (RERA) in Jammu, which set its guidelines as per the Real Estate Regulation and Development Rules, 2020. Since 2020, Jammu has been following central RERA guidelines in the UT.

All real estate developers should register their properties and themselves under RERA and update all details to maintain transparency. As per the Real Estate Regulatory Authority Act 2016, all states and UTs must have a RERA body under the respective state governments. You can check the details of your selected property in the RERA section of the Housing and Urban Development Department portal.

Stamp Duty in Jammu

The table below contains the stamp duty charges applicable for commercial properties in Jammu.

GenderStamp Duty Charges
Male7%
Female3%
Joint (Male + Female)7%
Joint (Male + Male)7%
Joint (Female + Female)5%

Registration Charges in Jammu

You should be aware of different charges that apply in addition to property costs while buying a commercial property. Thus the registration charges for commercial property purchases in Jammu are mentioned below.

GenderRegistration Charges
Male1.20%
Female1.20%
Joint (Male + Female)1.20%
Joint (Male + Male)1.20%
Joint (Female + Female)1.20%

Jammu Commercial Real Estate Sector: What’s the Forecast?  

Jammu used to be an underdeveloped city, but it is currently undergoing rapid improvements in its infrastructure and economy. Moreover, the local and Central Government is taking many measures to encourage investments and growth of this city.

Jammu has the potential to expand its economy by establishing operations in several new sectors. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) plans to set up special economic zones and business parks in this city. Setting up new industries can attract more investments to the city, which will boost the state’s economy.

The horticulture industry in Jammu is growing at a fast rate, with an annual turnover of approximately ₹300 crore and an additional ₹80 crore in foreign exports in the latest year. This is a good indicator of infrastructure growth and opportunities in the commercial real estate market.

Several banks and other small industries are planning to set up multiple branches and units in Jammu, which will create a profitable opportunity for the commercial sector. It will also increase employment and the demand for rental spaces in the city.

Commercial Real Estate vs Other Asset Classes

You can invest your wealth into several types of asset classes to generate passive income and grow your investment portfolio. Refer to the following list to understand which investment option is better for you.

  • Commercial Real Estate vs Stocks and Mutual Funds

Commercial real estate is a type of asset that offers moderately high returns at moderate risks. Stocks and mutual funds, on the other hand, offer higher returns compared to commercial real estate but also have a high-risk factor. Shares and funds are dependent on market factors, and thus they are extremely volatile. However, stocks offer diversification to your portfolio, unlike commercial real estate.

  • Commercial Real Estate vs Gold

Investing in gold can offer you moderate to low returns at a low-risk factor. The returns from gold investments are solely from the appreciation of the asset’s value. Commercial real estate investments offer moderately higher return returns compared to gold at moderate risks. However, the initial investment amount for gold is lower than for commercial properties.

  • Commercial Real Estate vs Bonds

Commercial real estate investments offer better returns than bonds at moderate risks. Bonds are market instruments offered by companies against funds. These assets allow investors to get fixed income over a fixed time frame at low risks. Bonds are good investment options if you invest in top-rated bonds. Check out the list of best-rated bonds on our homepage to invest your capital.

  • Commercial Real Estate vs Residential Real estate

Residential real estate investments offer moderate returns compared to commercial real estate and are considered slightly safer in comparison. However, commercial real estate offers higher returns at moderate risks in comparison to residential properties and has more demand in the market.

The table below is a comparison of the above assets based on returns, liquidity, risk, volatility and ticket size.

ParametersCommercial Real Estate Stocks & Mutual FundsResidential Real EstateBonds Gold
ReturnsHighHighModerateModerateModerate
LiquidityLowHighLow Moderate High 
RiskLowHighLow Moderate Low 
VolatilityLowHighLow Low Low 
Ticket SizeHighVariesHigh Varies Low 

Steps to Invest in Commercial Real Estate in Jammu

While investing in a commercial property in Jammu, follow the steps given below and expect good returns on your investment.

Step 1: Fix a financial range before you begin your search for a commercial property. 

Step 2: Appoint a reputable broker to help you with your investment.

Step 3: Research the commercial real estate market of Jammu and identify essential details like the price point.

Step 4: Based on your research, shortlist a few properties and visit the selected locations in person to verify all offered facilities.

Step 5: Finalise a property and check all official details about the developer and the property on Jammu’s RERA website.

Step 6: Submit all your documents to complete official formalities.

Step 7: Complete payments for your property and pay the broker’s commission.

Step 8: Pay stamp duty and complete the registration process.

Step 9: After you have successfully purchased a commercial property in Jammu, consider buying a good insurance policy to protect your asset from future threats.

Final Word

Investing in commercial real estate in Jammu is a good option as it can get you good returns. Commerce and trade in Jammu are growing each year, along with the city’s industrial capacity and production. As per current trends, the demand for real estate in Jammu will likely improve, increasing returns for investors. Therefore if you want to buy a commercial property in Jammu, now is a good time for it.

  1. Which languages are spoken in Jammu?

People in Jammu communicate in Kashmiri, Urdu, Dogri, English and Hindi primarily. The majority of the population uses Kashmiri and Dogri as their primary language in Jammu.

  1. Why is commercial real estate more expensive as compared to residential real estate?

Commercial properties cost more to build and also have higher demand than residential properties. Thus, it is more expensive in comparison to residential properties.

  1. What is considered a good return on commercial properties?

Commercial properties usually give better returns than residential real estate. The rate of return in real estate is not fixed and mostly depends on the property’s location. Returns of around 12% or more are considered a good return for commercial properties.

  1. What is special in Jammu?

Jammu is also known as the City of Temples as it has ancient temples and Hindu shrines. It is a popular place for pilgrimage.

Which languages are spoken in Jammu?

People in Jammu communicate in Kashmiri, Urdu, Dogri, English and Hindi primarily. The majority of the population uses Kashmiri and Dogri as their primary language in Jammu.

Why is commercial real estate more expensive as compared to residential real estate?

Commercial properties cost more to build and also have higher demand than residential properties. Thus, it is more expensive in comparison to residential properties.

What is considered a good return on commercial properties?

Commercial properties usually give better returns than residential real estate. The rate of return in real estate is not fixed and mostly depends on the property’s location. Returns of around 12% or more are considered a good return for commercial properties.

What is special in Jammu?

Jammu is also known as the City of Temples as it has ancient temples and Hindu shrines. It is a popular place for pilgrimage.

Was this helpful?

Anshul Gupta

Co-Founder
IIT Roorkee Alumnus and CFA with experience of structuring debt products worth more than 15000Cr for institutional and retail investors.

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