Guide for Lal Bahadur Nagar Commercial Real Estate Investment

Lal Bahadur Nagar or LB Nagar is a popular commercial and residential locality in Hyderabad of Telangana district. Being situated towards the east of Hyderabad, this is the prime entrance to the Hyderabad city. In recent years, the location has gained prominence in real estate sector because of sound metro and road connectivity.

This locality is situated at the intersection of NH-65 and Inner Ring Road, thus gaining an excellent connectivity advantage. Upon further reach, these roads connect to the Nehru Outer Ring Road and NH-163. Also, there is a nearby railway station, Malakapet, just about 9 km from this area.

There are various malls and employment hubs nearby this locality that are easily accessible via Inner ring road, Nehru outer ring road, etc. Because of all these prominent reasons, Lal Bahadur Nagar has emerged to be a lucrative destination for commercial real estate investors.

Top Reasons to Invest in Lal Bahadur Nagar Commercial Real Estate

Lal Bahadur Nagar has grown up to be a convenient location for commercial real estate investment because of the following reasons:

  • Infrastructure

The infrastructure of the locality is quite good, as there are several educational institutes and hospitals located nearby. Some famous ones include Medhas International School, Pragati Degree College, Shine Children’s hospital, OMNI hospitals, Ozone hospitals, etc.

Apart from this, there are several amenities in proximity that fulfil the recreational as well as shopping needs of the residents there. Some of these include Vijayalakshmi Theatre, Kothapet Fruit market, The Chennai Mall Kothapet, etc. 

  • Connectivity

With the presence of LB Nagar metro station on the Red line (Miyapur-LB Nagar) and Nagole metro station on the Blue line (Nagole-Hitec city), the city is excellently connected with metro lines. Apart from this, the locality also boasts excellent road connectivity with the presence of NH-163 and NH-65 which connects it to some major cities and towns of the state. Also, it is connected via railway lines.

  • Employment Hubs

Just about 40 km from LB Nagar have situated two major IT hubs- Hitec city and Gachibowli. Not just that, there are some technology parks also located nearby like Infosys SEZ (31 km), NSL Arena (10 km), etc. that are easily accessible through road connectivity. In addition to this, some industrial development areas are also situated in proximity to this location across Mallapur, Nacharam, and Uppal.

Commercial Real Estate Investment Opportunities in Lal Bahadur Nagar

Check out the real estate properties in these localities in and around Lal Bahadur Nagar for profitable commercial investment opportunities.

  • NTR Nagar

Situated approximately 2 km from Lal Bahadur Nagar, this is one of the ideal locations for investing in commercial property. What makes this place a lucrative option is the location’s close proximity to hospitals, major shopping malls, and economic hubs. It provides smooth connectivity to its nearby locations and employment hubs like Nacharam Industrial development area (11.6 km). 

The average price of commercial property in NTR Nagar ranges from ₹3,304-₹8,333 per sqft.

  • Nagole

Nagole, located around 4.7 km from Lal Bahadur Nagar, is a depot of Hyderabad Metro Railway. In recent years, the locality has witnessed decent growth in its real estate sector. The Secunderabad Railway Station is just about 12.2 km and the Rajiv Gandhi International Airport is about 28 km from Nagole. Also, commercial hubs like Hitech city are located in proximity to this location. 

The average price of commercial property in Nagole ranges from ₹5,000-₹5,699 per sqft.

Things to Consider Before Buying a Commercial Property in Lal Bahadur Nagar

There is no denying that purchasing a commercial property requires substantial finances. Thus, it requires more market research. 

Here are a few things that one should consider before buying a commercial real estate property:

  • Location

The location is an important consideration when purchasing any commercial property. If a property is located in a prime location, it will be profitable for both official and retail use. In fact, it is quite easier to get loans for properties situated in prime locations.

  • Infrastructure

The infrastructure of a place is also of paramount importance when it comes to investing in a commercial real estate property. Check whether the locality has basic amenities and facilities available nearby like hospitals, restaurants, shopping centres, malls, etc. Also, visit the area to verify whether the location is convenient as per your business requirement.

  • RERA Verification

The main aim of establishing RERA was to promote and regulate all real estate transactions in India. It presents all property-related information to the property investors in a transparent manner, so that they get encouraged to invest more and more in a property.

So, the investors need to visit the Telangana RERA portal for verifying the property and builder’s authenticity before investing in any property over there.

Stamp Duty in Lal Bahadur Nagar

Check out the stamp duty rates for a property in Lal Bahadur Nagar.

Sales AgreementStamp Duty Rates
Sale of immovable property in corporations, selection grade and special grade municipalities4%
Sale of immovable property in other areas4%
Apartments/Flats, including semi-furnished, in all areas4%
Sale agreement with GPA5% (4% adjustable and 1% not adjustable)
Sale agreement with possession4%
Sale agreement without possession0.5%

Registration Charges in Lal Bahadur Nagar

The table below shows the registration charges applicable for a property in Lal Bahadur Nagar.

Sales AgreementRegistration Charges
Sale of immovable property in corporations, selection grade and special grade municipalities0.5%
Sale of immovable property in other areas0.5%
Apartments/Flats, including semi-furnished, in all areas0.5%
Sale agreement with GPA2000
Sale agreement with possession0.5% (subject to a minimum of ₹1,000 and a maximum of ₹20,000)
Sale agreement without possession0.5% (subject to a minimum of ₹1,000 and a maximum of ₹20,000)

Lal Bahadur Nagar Commercial Real Estate Sector: What’s the Forecast?

The State Government’s flagship project Strategic Road Development Plan (SRDP) is planning to come up with a new project that will change the infrastructure of the roads of the city like never before. Under SRDP, the Greater Hyderabad Municipal Corporation (GHMC) is all set to develop a three-lane unidirectional underpass at LB Nagar’s Right Hand Side (RHS).

This 490 metre-long and 12.87 metre-wide underpass will be developed with the aim of easing the traffic congestion from Uppal to Owaisi junction and streamlining the local traffic. This will indirectly save vehicle operating costs and save commuting time. The GHMC has taken the initiative to build this project with an estimated cost of around 14.86 crore.

So, the infrastructural progress and sustainable development witnessed in and around Lal Bahadur Nagar make it an excellent bet for commercial property investors.

Commercial Real Estate vs Other Asset Classes

Commercial real estate investment is considered one of the best investment options for those who want to generate higher returns in the long term. Let’s take a look at how it could be a better alternative than many other asset classes.

  • Commercial Real Estate vs Gold

For those who want to get moderate yet stable returns, for them, gold investment is the best option. On the other hand, you can gain higher returns on commercial real estate investment but it involves more risk and comes with low liquidity value.

  • Commercial Real Estate vs Residential Real Estate

As Lal Bahadur Nagar is a prominent commercial hub of the city, investing in commercial real estate in this locality would definitely help you in generating higher returns. Though there are residential properties as well, it helps in generating comparatively lower returns and involves greater risks.

  • Commercial Real Estate vs Bonds

In comparison to commercial real estate, bonds provide higher returns on investments and involve low credit risks. However, the value of bonds remains static while that of commercial real estate increases through appreciation.

Commercial real estate investment also involves a higher quantum, while you can start off with bond investment with a much smaller amount. Interested to invest in high-quality bonds? Take a look at our homepage and analyse which bonds you want to invest in for generating better returns.

  • Commercial Real Estate vs Stocks & Mutual Funds

Stocks and mutual funds are highly volatile in nature as they are dependent upon market movements. Also, investment in mutual funds and stocks involves a compounding effect and thus provides higher returns on investments.

While commercial real estate investment, being less volatile offer comparatively less returns but also is less risky than mutual funds and stocks.

Here is a tabular representation of a comparison between the different types of asset classes along with commercial real estate in terms of liquidity risk, volatility, returns, and ticket price.

ParametersCommercial Real EstateStocks & Mutual FundsGoldResidential Real EstateBonds
LiquidityLow High HighLow Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High Low Low Low 
Ticket SizeHigh Varies LowHighVaries 

Steps to Invest in Commercial Real Estate in Lal Bahadur Nagar

Given below are the steps to start investing in commercial real estate properties:

Step 1: Formulate a budget and depending upon that, research the potential areas where there can be an increase in its price value in future.

Step 2: Conduct a survey on the potential localities by visiting each of these areas and shortlist a few sites based on the budget.

Step 3: Finalise a commercial property based on your investment goals. Also, check whether all the property documents are in the proper place while it is getting transferred.

Step 4: Ensure to make payment to the property seller and collect all the property-related documents.

Step 5: As soon as the transaction completes, ensure to check and complete its stamp duty and registration formalities.

Step 6: In case any real estate consultant or broker has assisted you through the process of choosing the real estate property, ensure to pay their charges as well.

Step 7: Last but not least, you can also consider buying an insurance policy for your property to protect it from further damages and safeguard your investment.

Final Word

Investors planning for commercial real estate investment in or around Lal Bahadur Nagar can expect to get higher returns in the future. Moreover, these properties have the potential to generate higher rental income.

Frequently Asked Questions

Is Lal Bahadur Nagar an urban or rural place?

Situated in the Telangana state, the LB Nagar locality falls in the Warangal urban district, with a population of about 22926.

Which side of Hyderabad is LB Nagar?

Lal Bahadur Nagar or LB Nagar is a developed locality situated in East Hyderabad. This locality is surrounded by the areas of Saroornagar, Vanasthalipuram, Kothapet, and Nagole.

Is there any metro availability from Lal Bahadur Nagar to Hitech city?

Yes. The total number of active intermediate metro stations between Lal Bahadur Nagar and Hitech City metro station are 24 stops or stations. The total travelling distance between Lal Bahadur Nagar and Hitech City metro station is 28 km.

How far is LB Nagar from the airport?

The distance between LB Nagar Station and Hyderabad Airport (HYD) is 24.2 km via car.

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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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