Guide for Khandwa Commercial Real Estate Investment
Khandwa is a city in the Nimar region of Madhya Pradesh. It is a major railway junction that connects Indore with the Deccan via the east-west line from Mumbai to Kolkata. Nearest commercial airport to Khandwa is in Indore. This city also has an airstrip which is used for aircraft landings occasionally. Khandwa is a promising commercial as well as residential area.
Let us learn how investing in commercial real estate in Khandwa might help you earn great returns on investment.
Top Reasons to Invest in Khandwa Real Estate
Here are some reasons why you might want to invest in commercial real estate in Khandwa:
Khandwa has a major railway junction which is located on the Jabalpur-Bhusaval section. The Indore Capital Transport Service Corporation serves the needs of public transport in Khandwa. This city benefits from BRTS buses which can be boarded from Swami Vivekananda and Bhawarkuan Square bus stop. Taxi services are also available.
Infrastructure-wise, Khandwa is a jewel in Indore’s crown. Its growing IT sector is the reason behind its expanding real estate market. It is close to Crystal IT Park, which is home to companies like Info Beans and Impetus. Therefore, Khandwa is an apt location for commercial real estate investment.
Commercial Real Estate Investment Opportunities in Khandwa
Here are some localities in Khandwa that are suitable for commercial real estate investment:
It is located in Khandwa tehsil in Madhya Pradesh. Roshnai is well-connected by public buses and railway station. Transport is available quite easily in this locality.
- Khandwa Taraf Kumbhi
This is a lively locality in Khandwa. There are a number of restaurants and shops present in the locality. If you are planning to invest in commercial real estate in Khandwa, then this is one of the best places you can consider.
Things to Consider Before Buying a Commercial Property in Khandwa
Here are a few points which you might want to keep in mind if you want to invest in commercial properties in Khandwa:
- RERA Authentication
The Real Estate Regulatory Authority (RERA) is a statutory body that promotes accountability & transparency in India’s real estate sector. It was established after enactment of the RERA Act of 2016.
Before purchasing a property, it is wise to check whether it adheres to the norms of RERA. You can check the authenticity of both the property and the builder by visiting the official website of RERA Madhya Pradesh.
- Review the Location
Location is a key factor that you should consider before opting for a commercial property. It should be accessible from other major parts of the city & the country. Opting for a prime location will help in earning great returns on investment.
Stamp Duty in Khandwa. Madhya Pradesh
Here is the rate of stamp duty applicable in Khandwa, Madhya Pradesh:
|Joint buyers (Male + Female)||7.5%|
|Joint buyers (Female + Female)||7.5%|
|Joint buyers (Male + Male)||7.5%|
Registration Charges in Khandwa, Madhya Pradesh
The registration charge that buyers need to pay for property purchases in Khandwa is as follows:
|Joint buyers (Male + Female)||3%|
|Joint buyers (Female + Female)||3%|
|Joint buyers (Male + Male)||3%|
Khandwa Commercial Real Estate Sector: What’s the Forecast?
Situated at the confluence of South and East of Indore city, Khandwa is a popular realty destination attracting investors from all around the country. The rise of IT industry in Indore is attracting more and more people here, which is ultimately advantageous for the commercial and retail market.
In the coming years, Khandwa is expected to be a top destination for MNCs and IT conglomerates, and this will naturally spur commercial growth in the area.
Commercial Real Estate vs Other Asset Classes
Here is a comparison between commercial real estate and other asset classes:
Commercial Real Estate vs Bonds
Real estate offers better tax benefits as well better returns in comparison to bonds. However, bonds are highly liquid investment options. Moreover, they are more safe and stable than real estate investments because of low credit risk.
Commercial Real Estate vs Gold
Gold requires much less quantum of investment in comparison to real estate. However, real estate is subject to low volatility and risk. Moreover, price of gold can fluctuate based on global market sentiments.
Commercial Real Estate vs Residential Real Estate
Due to frequent tenant changes, residential real estate is perceived to be riskier than commercial real estate. On the other hand, commercial real estate helps in yielding higher rental yields and returns in comparison to residential real estate. However, tax benefits are better in case of residential real estate if it is taken on a home loan.
Commercial Real Estate vs Stocks & Mutual Funds
Stocks and mutual funds require a much lower quantum of investment in comparison to commercial real estate. However, commercial investments offer more stable returns in terms of passive rental income.
Here is the comparison between different types of assets on the basis of returns, liquidity, risk, volatility and ticket size:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
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Steps to Invest in Commercial Real Estate in Khandwa
Here are the steps that you can follow if you wish to start investing in commercial real estate in Khandwa:
Step 1: Fix your budget and come up with a list of locations that fulfil your investment requirements.
Step 2: Plan a field visit to each of the locations to assess them based on infrastructure, connectivity, amenities, etc.
Step 3: After finalising a property, prepare the necessary documents like sale deed, encumbrance certificate, agreement, tax receipts, etc.
Step 4: Complete the payment process. Make sure to complete the registration and stamp duty 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.
If you are planning to invest in commercial real estate, you should confirm whether the property adheres to the norms of RERA. If you do not confirm this, you might face severe legal implications in the future. With relatively low real estate prices and ease of access to different parts of Madhya Pradesh, Khandwa is a prime location for commercial real estate investment.
Frequently Asked Questions
Do I need to pay stamp duty if the property is transferred, or is a gift?
Yes, even if the property is transferred or gifted, stamp duty is to be paid. Stamp duty on gift deeds generally ranges around 5 to 12% in every state. However, in states like Haryana and Delhi, a concession is given for women transferors.
What documents are required for possession of property?
Documents required at the time of possession are a possession letter, original stamp duty and registration receipt, copies of building plan approval, title agreement, etc.
How do banks evaluate a property for insurance?
Banks usually evaluate the value of property by multiplying the built-up property area with cost of construction per square foot.
What are property registration charges?
Property registration charge is a fee levied by the concerned state government to register the ownership of the property. It is compulsory for you to pay registration charges when you buy a property.