Guide for Kanchipuram Commercial Real Estate Investment

Known as the City of Thousand Temples, the city of Kanchipuram in Tamil Nadu is famous for its tourism industry. There are other industries as well, like, textile and IT firms, which are emerging and developing at a rapid rate and, thus, generating employment. Moreover, this city also has excellent connectivity and infrastructure, making it a haven for working professionals. All these features of Kanchipuram are creating demand for commercial real estate investment properties.

Let us know how investment in commercial properties in Kanchipuram can be profitable for you. 

Top Reasons to Invest in Commercial Real Estate in Kanchipuram

The top 2 reasons to invest in the commercial real estate of Kanchipuram are as follows:

  1. Better Connectivity

Kanchipuram is one of the best commercial localities due to its good connectivity to many other important areas. The Chennai – Bangalore National Highway passes through the outskirts of the city, providing easy transportation of people and goods. Moreover, this connectivity will also improve in the near future resulting in further city and industrial development.

  1. Industrial Development

The city of Kanchipuram has been famous for its textile industries for a long time. Moreover, this city has also witnessed the emergence of many famous IT companies and other industries, creating a demand for employment. This increase in demand has created a great opportunity for real estate investment. 

Investment Opportunities for Commercial Real Estate in Kanchipuram

The locations having the best opportunities for commercial real estate in Kanchipuram are as follows:

  1. Guduvancheri

Guduvancheri is one of the most famous locations in Kanchipuram for commercial real estate due to its great connectivity. This city provides easy access to many important industrial areas and the city centre. Moreover, its developed social infrastructure and affordable property rates are contributing to its increasing commercial demand. 

  1. Thiruporur

Thiruporur is also another major industrial hub of Kanchipuram, with many IT parks and other famous industrial buildings. It is in close proximity to many important roads and highways like GST Road and OMR, providing easy connectivity to many important places. All these features make this locality a viable area for commercial real estate investment.

Things to Consider Before Purchasing a Commercial Real Estate Property in Kanchipuram  

The primary things to consider before purchasing a commercial real estate property in Kanchipuram are as follows:

  • Proper Market Research 

Investing in commercial real estate involves a high quantum of investment and extensive documentation; hence, it needs a substantial amount of market research. Proper market knowledge will save you and your property from risks and fraudulent activities.

  • Check Authenticity through RERA

The Real Estate Regulatory Authority (RERA) is a statutory body that was notified after the enactment of the RERA Act of 2016. Its aim is to promote transparency and accountability between real estate agents and buyers. 

You can check the authenticity of the builder and their property in Tamil Nadu by visiting the RERA website of Tamil Nadu. 

Stamp Duty Rates in Kanchipuram, Tamil Nadu

The stamp duty rates applicable in Kanchipuram, Tamil Nadu, are as follows:

Document CategoryStamp Duty Rates
Sale (Conveyance)7% 
Exchange7% (having the greater value)
Simple mortgage1% of loan amount (to a maximum of ₹40,000)
Mortgage with possession4% of loan amount
Agreement to sale₹20
Agreement relating to building constructionHigher of 1% of construction value or the consideration specified in the agreement
General Power of Attorney (GPA) to sell any immovable property ₹100
GPA given for consideration4% of consideration
Partition 4% (for separated shares)
Settlement 7% 

Also Read: Guide for Kharagpur Commercial Real Estate Investment

Registration Charges in Kanchipuram, Tamil Nadu

The different types of registration charges applicable in Kanchipuram, Tamil Nadu, are as follows:

Document CategoryRegistration Charges
Sale (Conveyance) 4% 
Exchange4% (having the greater value)
Simple mortgage1% of loan amount (to a maximum of ₹10,000)
Mortgage with possession1% of loan amount (to a maximum of ₹2,00,000)
Agreement to sale1% on payment of advance money or 1% on total consideration (if possession is given)
Agreement relating to building constructionHigher of 1% of construction value or the consideration specified in the agreement
General Power of Attorney (GPA) to sell an immovable property ₹10,000
GPA to sell a movable property and for other purposes₹50
GPA given for considerationHigher of 1% on consideration or ₹10,000
Partition 1% (for separated shares)

It is essential to consider the stamp duty rates and registration charges as they will be a part of your investment amount. These charges should also be noted while planning your investment budget.

Also Read: Guide for Imphal Commercial Real Estate Investment

Commercial Real Estate Sector in Kanchipuram: What’s the Forecast? 

The commercial real estate sector of Kanchipuram is developing day by day due to the emergence of many new industrial sectors. Being a famous tourist destination, the connectivity and infrastructure of this city are great and also undergoing further development to connect more important places easily. 

The price of commercial real estate properties in this city has appreciated by around 20% in the last year. Hence, the current property prices range between ₹3800 and ₹5200 per square foot. Commercial real estate investment in Kanchipuram can be fruitful in the long term due to its booming tourism industry. 

Commercial Real Estate vs Other Asset Classes

The comparison between commercial real estate and other asset classes has been discussed below: 

  • Commercial Real Estate vs Gold

Price of gold can fluctuate as per market sentiments. However, real estate is a stable investment option that tends to offer high capital appreciation in the long term. 

  • Commercial Real Estate vs Residential Real estate

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

  • Commercial Real Estate vs Stocks & Mutual Funds

Commercial real estate offers assured returns with direct asset ownership if we compare them with the stock market. On the other hand, the stock market witnesses great fluctuation; hence, stock and mutual fund investments can be highly risky but provide great returns.

  • Commercial Real Estate vs Bonds

Commercial real estate investments have less liquidity than bonds due to their higher transaction costs and the long time it takes to find property buyers. Moreover, commercial real estate investment is exposed to the credit risk associated with tenants who need to make timely lease payments. 

If you want to invest in bonds providing stable returns at low risk, explore some of the top rated market bonds on our website. Register now and start your investment journey at zero additional costs and hidden charges. 

A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:

ParametersCommercial Real EstateGoldResidential Real EstateStocks & Mutual FundsBonds
LiquidityLowHighLow High Moderate 
RiskLow Low Low High Moderate 
VolatilityLow LowLow High Low 
Ticket SizeHigh Low HighVaries Varies 

Steps to Invest in Commercial Real Estate in Kanchipuram

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

Step 1: Estimate your budget and conduct proper market research on potential sites. 

Step 2: After shortlisting a few sites, plan a field visit to each of the sites to inspect them properly. 

Step 3: After finalising a suitable property, prepare all the official documents like title deed, property assessment extract, foundation certificate, etc.

Step 4: Complete the payment process. Make sure to complete the stamp duty and registration charges 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. 

Final Word

Considering the rapid growth and development of Kanchipuram, the commercial real estate sector of the city has been witnessing positive changes in terms of property value, connectivity and infrastructure. This positive change is attracting businesses towards this area and increasing the demand for office spaces. However, it is also necessary to conduct thorough market research and consult a real estate agent before making any investment decisions. 

Frequently Asked Questions

What are the best locations for commercial real estate investment in Kanchipuram?

Some of the best commercial localities to invest in Kanchipuram are Chengalpattu, Konerikuppam, Guduvancheri, Thiruporur, Pavunjur, Oragadam, Vengapakkam, Pondur and many more.

Should I go for commercial or residential real estate investment in Kanchipuram?

Both commercial and residential real estate of Kanchipuram is ideal for investing due to the city’s constant growth and development in terms of infrastructure and economy. Moreover, being one of the major industrial areas and tourist destinations, this city of Tamil Nadu has exceptional connectivity, making it ideal for real estate investment.

What documents are required for registration of property?

The documents required for property registration are PAN card, stamp duty receipt, government ID proofs, two passport-sized photographs, NOC, sale deed, POA, no dues certificate, etc.

What are some examples of commercial properties?

The types of commercial properties that you can invest in are shared workspaces, hotels, restaurants, warehouses, storage facilities, retail stores, etc.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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