Guide for Kallakurichi Commercial Real Estate Investment

Home to an extensive textile and jewellery industry, the town of Kallakurichi in Tamil Nadu is gaining interest among real estate investors. The visible growth in its connectivity and infrastructure has been attracting investors to purchase commercial spaces. Moreover, residential growth is also having a positive impact on its commercial market. 

Let’s see how investing in commercial properties in Kallakurichi can prove to be beneficial for you: 

Top Reasons to Invest in Kallakurichi Commercial Real Estate

Investing in Kallakurichi commercial real estate has the following two advantages:

• Affordability

The commercial properties here are not only affordable but also offer potential for appreciation. The prices vary from location to location. For instance, the property prices in the outskirts are lower than in the city centre.

• Connectivity

The town of Kallakurichi has been developing its connectivity over the past few years with the development of roads and highways. This will only increase in the upcoming years and attract more commercial investors. 

Commercial Real Estate Investment Opportunities in Kallakurichi

The commercial locations offering best opportunities for investment in Kallakurichi are as follows:

• Shri Balaji Nagar 

The connectivity and infrastructure of this location are improving at a steady pace. The commercial spaces here are certified by the Real Estate Regulatory Authority (RERA) of Tamil Nadu and the directorate of town & country planning.  

• Maas City

The commercial properties in this area are available at relatively lower prices than other locations. The industries in this area mostly deal with warehouses, cold storage facilities, factories, shops, etc. 

Things to Consider Before Buying a Commercial Property in Kallakurichi  

Some important things to consider before buying a commercial real estate property in Kallakurichi are:

• Proper Market Research 

Investing in commercial real estate involves risks and thus needs a substantial amount of research. Having proper knowledge about the commercial market space in Kallakurichi will help you generate decent returns from your investment. 

• Check authenticity through RERA

The Real Estate Regulatory Authority (RERA) is a statutory body notified by the RERA Act of 2016. The apex body focuses on promoting transparency and accountability in the real estate industry. 

All builders and developers of a state must be registered on the respective state’s RERA portal. Hence, you must check the authenticity of the commercial property in Kallakurichi by visiting the portal of RERA Tamil Nadu.  

Stamp Duty in Kallakurichi, Tamil Nadu

The stamp duty rates for commercial property sales in Kallakurichi are:

Registration Charges in Kallakurichi, Tamil Nadu

The various types of property registration charges in Kallakurichi are:

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

The commercial real estate sector of Kallakurichi is increasing at a fast rate. Development of new roads and highways has improved the connectivity of the inner parts of the city to the important industrial areas that border the outskirts. 

Additionally, there have been simultaneous changes in the infrastructure, which is growing at a promising rate and will continue its growth in future.

Commercial Real Estate vs Other Asset Classes

The comparison between commercial real estate and other asset classes is as follows:

• Commercial Real Estate vs Gold

Gold as an investment option faces volatility, and there are risks of physical gold getting stolen. On the other hand, real estate is a stable investment option that comes with additional tax benefits. Moreover, the price of gold fluctuates as per market sentiments, but a good real estate investment tends to offer lucrative returns in the long run. 

• Commercial Real Estate vs Residential Real estate

The vacancy risks in residential properties due to frequent tenant turnover are higher than in commercial real estate. Moreover, residential properties need to be leased on an annual basis, but office spaces can be leased for longer tenures. 

• Commercial Real Estate vs Stocks & Mutual Funds

Stock markets offer comparatively higher returns but witness significant market fluctuation. At the same time, capital requirement is very high in case of commercial real estate while mutual fund investment requires a very low amount. 

• Commercial Real Estate vs Bonds

Bonds have a lower credit risk than commercial real estate properties. Additionally, commercial property investments are more illiquid than bonds due to the extensive time it may take to find a suitable buyer for the property.

Here’s a tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price:

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Steps to Invest in Commercial Real Estate in Kallakurichi

The steps to invest in commercial real estate in Kallakurichi are as follows:

Step 1: Define your investment budget.

Step 2: Carry out proper market research about the different types of commercial locations that are available for investment. 

Step 3: Make a list of affordable sites. Consider going on an in-person visit to analyse the specifications of each site with precision. 

Step 5: Finalise a suitable commercial property that meets your requirements. Verify the details of the property on the RERA website.

Step 6: Prepare the required official documents like sale deed, building plans, etc., and proceed with the purchase after completing all legal formalities.

Step 7: Pay the stamp duty and registration charges for the property, as applicable.

Step 8: Pay service charges to real estate brokers and consultants if you availed their services.

Step 9: Finally, consider purchasing an insurance policy for your new property to keep yourself financially secure in case your property faces damages.

Final Word

Considering the rapid growth and development of connectivity and infrastructure in the city of Kallakurichi, the commercial real estate sector has been witnessing a tremendous increase in terms of property value. This positive change reflects the town’s growing capacity for commercial real estate properties. 

Frequently Asked Questions