Guide for Meerut Commercial Real Estate Investment
Meerut is a Tier II city in Uttar Pradesh, the largest city in the National Capital Region (NCR). This city is the largest musical instrument and sports goods producer in India.
This city’s main Unique Selling Proposition (USP) is its great connectivity to prominent cities like Delhi, Noida, Ghaziabad, Faridabad and Haridwar. This city was declared a metropolitan city in 2007, and since then, the city has been developing rapidly due to the development of transport infrastructure projects and new flyover construction.
Low prices of property and affordable land rates are increasing the rate of urbanisation and catalysing the growth of the commercial real estate sector.
Let’s see why investing in Meerut’s commercial real estate can be profitable.
Top Reasons to Invest in Meerut Real Estate
Some reasons why you can invest in commercial real estate in Meerut are as follows:
Presence of Retail Markets
This city has great potential for new retail businesses as there are several exclusive shopping malls and multiplexes. The retail market of this city is rapidly growing due to the presence of malls like PVS Mall, Metro Plaza, Shopprix Mall, Era Mall and Melange Mall.
Meerut is acquiring a lot of popularity as an affordable real estate zone in the NCR. The availability of land at affordable rates is another reason behind the growth of mid-segment and low-cost commercial segments in Meerut.
Meerut’s proximity to developed cities like Delhi, Gurugram, and Noida, is an ideal destination for real estate investment in the entire NCR. It is situated 70 km northeast of Delhi and is overhauled by three national highways – 58, 119 and 235.
The government has further approved India’s first high-speed regional transit system to l speed up the journey from Delhi to Meerut and address traffic congestion.
Commercial Real Estate Investment Opportunities in Meerut
Here are some of the ideal locations in Meerut for investment in commercial real estate.
Modipuram is a village named after the Tyre company Modi Continental, now known as Modi Rubber Ltd. Presence of basic establishments has transformed this place into a popular commercial area. A number of good shopping malls and hospitals are also present. . Rates of commercial property range around ₹10,000 per square foot.
Due to its position on NH 58, Pallav Puram enjoys excellent access to Delhi, Dehradun, and Muzzaffarnagar. It is a neat and clean locality, and commutation is not a problem. This place has developed at a fast pace. Rates of commercial real estate ranges around ₹14,000 per square foot.
Things to Consider Before Buying a Commercial Property in Meerut
Here are some fundamental factors that you might want to keep in mind before buying a commercial property in Meerut:
Location is a crucial factor when investing in commercial real estate. A well-connected project in a prime location is equal to increased footfall. As an investor, you should thoroughly check all the advantages and disadvantages that the location presents to you.
Before buying, check whether the property you are opting for adheres to the norms of RERA. The Real Estate Regulatory Authority (RERA) is a statutory body that promotes transparency in India’s real estate industry.
Each state has its own RERA website, which has laid out the norms mentioned in the Real Estate (Regulation and Development) Act of 2016. You can check the property’s authenticity by visiting the official website of RERA Uttar Pradesh.
Pick Your Tenants Wisely
A good tenant works as a stepping stone towards increasing the value of your commercial real estate. Try to rent the property to a reputed company as they will pay rent on time, pay a higher deposit amount and opt for a longer lease with you.
Stamp Duty in Meerut, Uttar Pradesh
Stamp duty is decided in accordance with the circle rates decided by state administration. Here are the stamp duty rates applicable in Meerut:
|Joint buyers (Male + Female)||7%|
|Joint buyers (Male + Male)||7%|
|Joint buyers (Female + Female)||7%|
Registration Charges in Meerut, Uttar Pradesh
Registration charges are different from state to state. In Uttar Pradesh, it is similar irrespective of the gender of the property owner. Mentioned below are the registration charges applicable in Meerut, Uttar Pradesh:
|Female||1% (a rebate of Rs 10,000 available on the final amount payable)|
|Joint Buyers (Male + Female)||1% (a rebate of Rs 10,000 available on the final amount payable)|
|Joint Buyers (Female + Female)||1% (a rebate of Rs 10,000 available on the final amount payable)|
|Joint Buyers (Male + Male)||1%|
Meerut Commercial Real Estate Sector Outlook
The development of the Delhi-Meerut highway is almost like a dream come true for Meerut’s commercial real estate sector. . It has transformed Meerut into a realty hub. NH-58 and its nearby locations have benefitted the most from this. There were traffic jams and high pollution, but now, real estate properties are becoming more accessible, thanks to the highway.
The upcoming metro in Meerut and the Rapid Rail Transit System will further create better connectivity with other parts of NCR. It will provide North-South connectivity, and phase II will offer East-West connectivity. This advancement will undoubtedly give a significant impetus to Meerut’s commercial realty landscape.
Commercial Real Estate vs Other Asset Classes
Let’s compare commercial real estate with other asset classes on returns they earn:
Commercial Real Estate vs Bonds
Commercial real estate offers higher returns in comparison to bonds. However, bonds are much more secure as they have high credit risk. Additionally, they offer fixed returns which is different for real estate.
If you wish to earn fixed returns ranging between 9-11%, register on our platform today and start investing in top-rated bonds without incurring any additional charges.
Commercial Real Estate vs Stocks and Equity Mutual Funds
Stock markets are prone to many risks related to market fluctuation, which is not the case for commercial real estate. However, returns from stocks and equity mutual funds are comparatively higher than real estate. However, commercial real estate is quite a stable investment compared to stocks and equity mutual funds.
Commercial Real Estate vs Gold
Gold cannot offer monthly returns, which is possible in real estate. However, gold is much more liquid than real estate, as selling a commercial property can be tricky and might take longer time.
Commercial Real Estate vs Residential Real Estate
Commercial real estate offers much higher returns in comparison to residential real estate. However, finding a tenant for a residential property is much easier than finding one for a commercial property.
Below is a table that compares different types of assets on the basis of returns, liquidity, risk, volatility and ticket size:
|Parameters||Commercial Real Estate||Stocks & Equity Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Commercial Real Estate in Meerut
Following are the steps that you can follow if you wish to start investing in commercial real estate in Meerut:
Step 1: Identify several locations where you wish to invest.
Step 2: Fix a budget and check which location and property suit your budget and requirements.
Step 3: Understand the market dynamics and shortlist a few locations offering high returns.
Step 4: You can take the help of a broker to visit all the shortlisted locations. Verify all the documents and check whether they adhere to the norms of RERA or not.
Step 5: Finalise a locality that suits your requirements.
Step 6: Take the help of a lawyer and prepare all the documents like title deed, tax documents, etc.
Step 7: Pay the stamp duty and registration fee to own the property legally.
Step 8: Lastly, pay for the services of the lawyer and broker.
Step 9: Consider purchasing an insurance plan for financial security if your property incurs any damage in the future.
Smooth connectivity through well-structured roads is the prime reason behind the boost in Meerut’s commercial real estate market. In addition, the smart city status of Meerut will further escalate the real estate scenario. Sprawling office spaces, better facilities and massive commercial development will transform Meerut into a dream destination.
Frequently Asked Questions (FAQs)
What are the different types of residential properties?
Different types of residential property available in the market are apartments, villas, bungalows, penthouses, condos and duplexes.
What are some of the famous localities in Meerut?
Some famous localities in Meerut are Ganga Nagar, Pavli Khas, Malyana and Delhi-Meerut Highway.
Is gold less risky than commercial real estate investments?
No, gold investments can be much riskier when compared to real estate investments. First, there is the risk of physical gold getting stolen. Secondly, the price of gold ETFs fluctuates per market sentiments.
Which performs better – mutual funds or commercial real estate?
If we talk about offering consistent returns in terms of passive income, real estate takes the upper hand; however, equity mutual funds are far ahead in terms of long-term performance, as a bullish market can generate exponential returns.