Guide for Kanpur Commercial Real Estate Investment

Kanpur is an industrial city and the financial capital of Uttar Pradesh. It is the eleventh most populous urban city In Uttar Pradesh, with a population of approximately 5 million people. This increasing population rate is one of the reasons behind the rising demand for commercial properties such as retail stores, restaurants, hotels, restaurants, shared workspaces, etc.

Moreover, Kanpur city serves good connectivity to many important places in the country via airways, roadways and railways. All these features and facilities make Kanpur famous for commercial real estate.

Let us know more about investment opportunities in Kanpur.

Top Reasons to Invest in Commercial Real Estate in Kanpur

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

1. Better Connectivity

The city of Kanpur witnesses major connectivity facilities through roads, railways, metro and airways. It is situated near NH2 on the Delhi-Agra-Allahabad-Calcutta route and NH25 on the Lucknow-Jhansi-Shivpuri route, providing accessibility all over the city.

2. Affordability

The commercial real estate spaces in Kanpur are not only affordable but also vary in value from location to location. For instance, the property prices in the outskirts are lower than in the city centre.

Investment Opportunities for Commercial Real Estate in Kanpur

The locations offering the best opportunities for commercial real estate investment in Kanpur are: 

1. Kalyanpur

This locality lies in close proximity to the Grand Trunk Road and is well connected to major parts of Uttar Pradesh by Panki Road and Bithoor Road. It is also connected through railways and metro ways and is only 5 km from the industrial areas of Kanpur.

2. Tilak Nagar

Tilak Nagar is located near the city centre, offering great connectivity to different parts of Kanpur city. Moreover, there are positive infrastructural changes that are making this area famous for commercial real estate.

Read Also: Guide for Munger Commercial Real Estate Investment

Things to Consider Before Buying a Commercial Property in Kanpur

The main things to consider before buying a commercial real estate property in Kanpur are as follows:

1. RERA Verification

The Real Estate Regulatory Authority (RERA) is a statutory body that promotes regulated and transparent transactions between real estate agents and buyers. It was notified by the RERA Act 2016.

2. Lease Structure

A lease is a legal contract between a commercial space owner and occupier to identify any risk involvement. It is crucial to comprehend the details mentioned in the document when assessing and analysing an investment.

3. Builder’s Reputation

If you are planning to invest in a particular builder’s property, check their past projects and their performance. You must check whether there are any ongoing court cases against the builders or the chosen property. Avoid investing in a property that has incorrect or missing documentation. 

Stamp Duty in Kanpur, Uttar Pradesh

The stamp duty rates for commercial property sales in Kanpur are in the following table:

Note: In some cases, women are offered a 1% reduction in stamp duty charges in Uttar Pradesh. However, the maximum reduction that can be availed is ₹10 lakhs of the total transaction value of a property.

Registration Charges in Kanpur, Uttar Pradesh

The property registration charges in Kanpur are as follows:

It is very important to consider the rates of stamp duty and registration as they will be a part of your investment amount.

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

In FY 2022, Uttar Pradesh RERA received 125 applications for new project registrations in both commercial and residential, especially during the first 6 months. On the contrary, in FY 2021, it received around 100 applications during the same period. Among these applicants, 34% belong to NCR districts, and 66% belong to non-NCR districts. This depicts a considerable amount of improvement in terms of property applications. 

Real estate projects estimated to be worth ₹3,648.35 crore have been registered with the Uttar Pradesh Real Estate Regulatory Authority (UP RERA), a significant part of which is based in Kanpur. The state is hyper focused on establishing itself as an industrial hub, and Kanpur commercial real estate is helping it to achieve that goal.  

Commercial Real Estate vs Other Asset Classes

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

• Commercial Real Estate vs Stocks and Mutual Funds

Commercial real estate offers assured returns with direct asset ownership when compared to stocks and mutual funds. However, the stock market provides comparatively higher returns but witnesses great fluctuation with higher risks. 

• Commercial Real Estate vs Gold

The price of gold fluctuates based on global economic markets; on the other hand, commercial real estate provides guaranteed returns on a long term basis. However, gold offers better liquidity options as it can easily be converted to liquid money, which is not possible with real estate.

• Commercial Real Estate vs Residential Real estate

Residential real estate has higher rental prospects than commercial spaces. However, it lacks demand compared to commercial real estate, especially in the premium category. 

Discover More: Guide for Kanpur Residential Real Estate Investment

• Commercial Real Estate vs Bonds

Bonds have a low credit risk in comparison to commercial real estate. Additionally, commercial property investments have low liquidity than bonds due to the high transaction costs associated with them. 

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

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Steps to Invest in Commercial Real Estate in Kanpur

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

Step 1: Do proper market research and calculate your budget for investment.

Step 2: Shortlist a few affordable sites. You can also take the help of an agent to get the best deals.

Step 3: Go on a field visit to examine each site precisely.

Step 4: Finalise a commercial property that is suitable and prepare all the official documents like sale deed, allotment paper, copy of building plan, etc. 

Step 5: Make the final payment to purchase the property. Complete stamp duty and registration formalities. 

Step 6: Lastly, consider purchasing an insurance policy for your property to protect yourself financially in case your property incurs some damage. 

Read More: Guide for Coimbatore Commercial Real Estate Investment

Final Word

The outlook of Kanpur for commercial real estate is quite promising due to its growing economy and infrastructure. If you plan to invest here, conduct thorough market research or consult a real estate agent.

Frequently Asked Questions