Commercial Real Estate Investment in Moradabad
Moradabad is one of the major industrial cities of India. This city ranks among the top 100 smart cities in India.
This city accounts for 40% of India’s handicrafts export. Adding to the list, Moradabad exports major brassware products to countries like Germany, Britain, Canada, and the US. In total, the city exports products worth ₹4,500 crore, including glassware, metal wares, artworks, aluminium, iron sheets, etc.
Moradabad Special Economic Zone (SEZ) is the only government-hosted SEZ in northern India.
Read along to learn the benefits of investing in commercial real estate in Moradabad.
Top Reasons to Invest in Commercial Real Estate in Moradabad
Here are some fundamental reasons for you to invest in commercial real estate in Moradabad:
Moradabad is the brass capital of India. There are approximately 9000 industries and 600 export units in Moradabad. This city is one of the industrial corridors declared by the Uttar Pradesh Government in 1999-2002.
Therefore, one can find numerous investment opportunities in commercial properties like warehouses and local industries in Moradabad.
Location and Connectivity
Moradabad is situated on the banks of the Ramganga River in Uttar Pradesh. It lies 167 km away from New Delhi. You can access Moradabad easily by road or railway.
National Highway 509, 24, and 734 connect Moradabad to New Delhi, Lucknow, Agra, Hathras and Chandausi. Moreover, NH 24 is part of the Asian Highway running between Indonesia and Iran. Several state highways also connect Moradabad to Haridwar, Amroha and other neighbouring cities.
The Moradabad Railway Station is a major nearby junction that helps connect Moradabad to all major Indian cities.
Passive Source of Income
Being an important city for producing and exporting brassware, Moradabad is an excellent location for setting up businesses. As such, it provides excellent investment opportunities in commercial real estate. Moreover, you can enjoy substantial gains without much effort by renting out commercial spaces like offices or warehouses.
Commercial Real Estate Investment Opportunities in Moradabad
The list given below covers some vital locations for commercial properties in Moradabad:
Civil Lines is a residential area in Moradabad. As a residential area, Civil Lines hosts several shops, retail stores, restaurants and malls to cater to the residents’ needs. Hence, you can find many opportunities to invest in commercial real estate and earn high returns in Civil Lines.
By utilising the growing demand for recreation and entertainment of people here, you can earn substantial returns. Property prices in Civil Lines range from approximately ₹8 lakh to ₹6 crore.
Ramganga Vihar is a posh locality in Moradabad. This region boasts several education institutes and small complexes along with residential colonies. In addition, there are numerous opportunities to invest in commercial properties like showrooms, departmental stores and hotels in Ramganga Vihar.
Property prices here vary from ₹15 lakh to ₹4.25 crore.
Things to Consider before Investing in a Commercial Property in Moradabad
Here are some crucial points to remember before investing in commercial real estate in Moradabad.
A well-equipped building is a necessity for attracting tenants. Infrastructure involves proper elevator facilities, ventilation, spacious rooms for offices and hotels, etc. In addition, if you invest in warehouses, ensure it has enough space to hold manufactured goods and machinery.
Also, the façade of a building is an integral part of an infrastructure that reflects your investment goals. Therefore, it would be best if you concentrated on the façade or exterior of your building to cater to target audiences.
While investing in an under-construction building, consider checking the builder’s portfolio. Evaluation involves examining the builder’s past projects and successful works. You may also cross-verify this information by contacting the investors and owners of the previous properties.
The Real Estate (Regulation and Development) Act of 2016 was formulated by the Indian Parliament to protect the interest of property buyers. It regulates the real estate sector in the country by increasing transparency and preventing fraud.
Every builder and broker must register their properties under the Real Estate Regulatory Authority (RERA) portal of Uttar Pradesh’s website. You can check your shortlisted properties here to know their authenticity.
Stamp Duty in Moradabad
This table displays the stamp duty applicable to commercial real estate in Moradabad:
|Female + Female||7%|
|Male + Male||7%|
Registration Charges in Moradabad
The following are the registration charges applicable while buying commercial real estate in Moradabad:
|Female||1% (a rebate of Rs 10,000 available on the final amount payable)|
|Female + Female||1% (a rebate of Rs 10,000 available on the final amount payable)|
|Male + Male||1%|
|Male+ Female||1% (a rebate of Rs 10,000 available on the final amount payable)|
Moradabad Commercial Real Estate Outlook
The UP State Government plans to set up an airport in Moradabad to improve connectivity from other parts of India. This plan will be a significant step for Moradabad to ascend towards becoming a smart city. Reports speculate that airline service from Moradabad will begin shortly.
Improving connectivity will help attract many industrial and commercial businesses to the industrial regions of Moradabad. As a result, there will be more investment opportunities in hotels, restaurants and other shops surrounding the airport.
The State Government is also planning to improve infrastructure, energy and other services to Moradabad and neighbouring cities. This step will lead towards significant development projects in this industrial city as a part of the Green Initiative.
Commercial Real Estate vs Other Asset Classes
Here are some points of differences between commercial real estate and other asset classes:
Commercial Real Estate vs Gold
As buying and selling gold is more accessible than commercial properties, the former has a more liquid market than commercial properties. However, you can earn higher returns with commercial real estate than with gold.
Commercial Real estate vs Residential Real Estate
Commercial properties are more expensive than residential real estate. Therefore, you can earn higher returns with commercial real estate than with residential properties. However, finding tenants for commercial properties is a time-consuming and overwhelming process. Also, commercial property owners run higher credit risk than their residential counterparts.
Commercial Real Estate vs Bonds
Both commercial real estate and bonds are excellent sources of passive income. However, like gold, selling bonds is easier than commercial real estate. As a result, bonds have a more stable and liquid market.
Commercial Real Estate vs Stocks and Equity Mutual Funds
Stocks and equity mutual funds have a volatile market. Investing here can fetch you high returns as well as losses. So, investors must have proper knowledge of stock markets before investing. On the other hand, commercial properties offer more stable returns and are less risky than the stock market.
The table below compares asset classes based on their liquidity, volatility, risks and ticket size.
|Parameters||Commercial Real Estate||Stocks and Equity Mutual Funds||Gold||Residential Real estate||Bonds|
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Steps to Consider before Investing in Commercial Real Estate in Moradabad
Here are a few crucial steps you must follow while investing in commercial real estate in Moradabad.
Step 1: Fix your budget and goal before investing in a commercial property.
Step 2: Conduct thorough research on potential locations and sites that may flourish in future.
Step 3: Shortlist a few sites suiting your budget.
Step 4: Conduct on-site research to analyse the ground situation closely. You may also consult various real estate consultants to know the prospects for developing these sites.
Step 5: Finalise a commercial plot that fits your budget and investment goals.
Step 6: Ensure to obtain all the official documents like Title Deed, Property Assessment Extract, Foundation Certificate, etc.
Step 7: Complete the stamp duty and registration formalities to transfer the property in your name.
Step 8: Pay fees to brokers or real estate consultants for availing their services, if any.
Besides offering high returns, investments in commercial properties have their share of risks. Therefore, you must consider your financial standing and risk appetite before investing in commercial real estate. Another good idea is to take consultations from a real estate expert or hire the services of a broker. Make sure that the broker holds a licence under RERA.
Frequently Asked Questions (FAQs)
Why do I need to register my commercial property in Moradabad under the UP Government?
Registering your property to complete the transfer of your newly purchased property from a seller is necessary. Doing so ensures your rights on the property, enables land transactions and allows a chance for your land to be used as collateral.
What industry is famous in Moradabad?
Moradabad is famous worldwide for its handicraft industry which produces brass items, mainly utensils, trophies, and jewellery.
Which places in Moradabad are suitable for investing in commercial real estate?
Ramganga Vihar Phase 1 and 2, Transport Nagar, Civil Lines, and Adarsh Colony are great locations in Moradabad to invest in commercial real estate.
Which commercial properties can help me earn high returns?
Properties that can hold a large number of tenants can help you earn high ROI. For instance, office buildings, hostels, warehouses, and hotels are some of those commercial properties that can yield you high ROI.