Guide for Katihar Commercial Real Estate Investment
Katihar is one of the prominent districts in Bihar. It covers an area of 3,056 sq. km. and has a population of 30,71,029. It is a major industrial centre in Bihar, especially for agro-based industries.
Katihar is one of the most profitable places for commercial real estate investment due to several factors. This includes its commercial prominence, its impressive connectivity with the rest of the country and the continuous infrastructural development in the district.
Top Reasons to Invest in Katihar Real Estate
One of the biggest advantages of investing in commercial real estate in Katihar is the excellent connectivity of the town with other prominent regions of the city.
Katihar is well-connected by roadways to other districts of the state as well as major cities of other states. Buses of Bihar State Transport Corporation connect Katihar to cities like Purnea, Siliguri, Manihari, Bhagalpur and Patna.
It also is a major railway junction. It is the headquarter of the Katihar railway division of the North-East Frontier Railway. It has a 7-line junction which connects it to New Jalpaiguri, Siliguri, Kishanganj, Darjeeling and other major trade centres.
The excellent connectivity of Katihar makes it an ideal place to invest in commercial real estate.
- Industries and Commerce
Katihar is a major industrial hub of Bihar. There are a total of 1187 industries here. These include mostly agro-based industries like flour mills and jute mills.
Apart from that, there are numerous other industries such as readymade garments and embroidery, wooden furniture, leather, chemical and chemical-based, electrical and engineering and metal industries.
The commercial presence of major industries makes this an ideal place for investments.
Commercial Real Estate Investment Opportunities in Katihar
Kadwa is a major commercial location in Katihar. It is well connected to other parts of the city. It is already a commercial hub. It is near infrastructures like banks and hospitals. Banks like United Bank of India, State Bank of India and Central Bank of India have branches in this location.
Kadwa is already a prominent commercial location in Katihar. The area has a number of hotels like Namaste Bharat Inn, Hotel Rajasthan and Ganesh Hotel. It has several eateries nearby like Royal Table Family Restaurant and Tandoori Mahal.
- Lohia Nagar
Lohia Nagar is another important locality in Katihar where you can invest in commercial real estate. It has excellent connectivity with other areas of the city.
Lohia Nagar has excellent infrastructure. There are several malls and numerous hospitals located here. This makes the place commercially important in Katihar.
Things to Consider Before Investing in a Commercial Property in Katihar
- Location and Connectivity
Location is one of the most important factors that you should keep in mind while choosing a property. If a property is in a prominent location with adequate infrastructure and amenities, the value of the property will be high. However, if the property is in a location which is far away from necessary infrastructure, the property will not be as profitable.
Furthermore, a property located in a location having excellent connectivity facilities with the rest of the district will fetch you a better rental prospect.
- RERA Authentication
Under the Real Estate Regulatory Authority Act, 2016, every state has a statutory body for the regulation of the state’s real estate business. The main purpose of the real estate regulatory authority in every state is to maintain transparency and accountability in the state’s real estate business.
Therefore, before investing in a commercial property, check the authenticity of the property and its builder by visiting the Bihar RERA website portal.
Stamp Duty in Katihar, Bihar
Given in the table below are the stamp duty rates in Katihar:
Registration Charges in Katihar, Bihar
Apart from the stamp duty, you also have to pay the registration charges to become the legal owner of the property. Here is a table in which the registration charges of commercial property in Katihar are given:
Katihar Real Estate Sector: What’s the Forecast?
Katihar has been witnessing continuous efforts by the state and central governments to develop its infrastructure and make it an important commercial hub in the state. It ranks third in the list of aspirational districts as per Niti Aayog. The Katihar civic body has announced that it will spend around ₹193 crores in developing the infrastructure of Katihar.
Furthermore, investments have been made to develop the road infrastructure of the city. Apart from that, there are plans to link Katihar and Meghalaya via Bangladesh to facilitate efficient communication and trade.
Therefore, Katihar seems to be on a rapid path of commercial development, which makes it an ideal place for commercial real estate investment.
Commercial Real Estate vs Other Asset Classes
Before investing in commercial real estate, you need to understand whether it is the right asset for your investment plans. Here is a comparison between commercial real estate and other asset classes:
- Commercial Real Estate vs Gold
Commercial real estate can get you higher profits than gold investments. However, gold has higher liquidity than commercial real estate. Thus, invest in commercial properties only if you are looking for a mid to long-term investment plan.
- Commercial Real Estate vs Residential Real Estate
Commercial real estate can fetch you a higher profit than residential real estate. Furthermore, commercial real estate also has a higher rental prospect than residential properties, especially in the premium category.
- Commercial Real Estate vs Stocks and Mutual Funds
Stocks can get you higher profits in comparison to commercial properties. However, stocks are highly volatile and returns fluctuate according to market conditions. Commercial properties, on the other hand, have less risk of incurring losses.
- Commercial Real Estate vs Bonds
Both asset classes are secure and profitable modes of investment. However, bonds have a lower credit risk as compared to commercial real estate investments. Furthermore, commercial properties have lower liquidity as compared to bonds.
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Here is a table which compares the different asset classes based on returns, liquidity, risk, volatility and ticket size:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Commercial Real Estate in Katihar
Here are the steps that you can follow to invest in commercial real estate in Katihar:
Step 1: Fix a budget for the investment.
Step 2: Conduct online research on the sites which are showing high development and promise high future rental prospects and resale value.
Step 3: After shortlisting a few sites, visit them to look into the available infrastructure and amenities.
Step 4: Purchase a suitable property and after preparing the ownership documents like the title deed, foundation certificate, property assessment extract, etc.
Step 5: Pay the required stamp duty and registration charges to transfer the ownership of the property to your name.
With the rapid development of Katihar, there will be increasing commercial investments in the city. Thus, it is the right time to invest in the lucrative commercial real estate of Katihar and get a high resale value in the future. To choose the right property for investment, you can also take the help of a real estate agent.
Frequently Asked Questions
Q1. What are the property prices in Katihar?
Ans. The average commercial property price in Katihar is around ₹1389 per square foot. However, it may vary from locality to locality.
Q2. What is stamp duty?
Ans. Stamp duty is a legal tax that you have to pay to the concerned state government when purchasing a property. You have to pay it to transfer the ownership and become the legal owner of the property.
Q3. Why is it necessary to insure a commercial property?
Ans. It is always advisable to insure a commercial property. Insurance provides financial coverage if your property incurs any damages due to natural calamities, fire or theft.
Q4. What are some places for residential property investments in Katihar?
Ans. Some locations in Katihar where you can purchase residential property are Chudi Patti and Khanqah.