Guide for Mulugu Commercial Real Estate Investment ￼
Located in the southern Indian state of Telangana, Mulugu is one of the 33 districts in the state. It is a beautiful place which has the lowest population in Telangana. With a world heritage site located in Mulugu, the city holds immense potential to develop as a major tourist destination in the country.
Another important factor to note is that Mulugu has the highest share of the rural population at 96.10% and both the Central and State Governments have developed comprehensive plans to encourage the population to take up organic farming.
Let’s discuss some of the important details related to commercial real estate investments in Mulugu in Telangana.
Top Reasons to Invest in Commercial Real Estate Investment in Mulugu
Mulugu is located quite close to Hyderabad and Warangal which are important commercial hubs in the country. Discussed below are the reasons you should consider before investing in Mulugu in Telangana:
- Important commercial hub
Mulugu is located quite close to Warangal and Hyderabad which are important commercial and IT hubs in India. Reputed educational institutions such as the National Institute of Technology and Kakatiya University are located in Warangal which attracts multiple people from all over the country.
In Hyderabad, the Information Technology and manufacturing sector, financial services, hospitality industry, engineering and defence continue to flourish. Investing in commercial properties located nearby in Mulugu would deliver good returns.
Mulugu holds a significant position in temple tourism in South India apart from being home to other tourist destinations. Some of the important attractions are Ramappa temple, Mallur Sri Hemachala Lakshmi Narasimha Swamy Temple, Medaram Jathara, Bogatha Waterfalls and Tadvai forest huts. You can consider investing in commercial properties catering to tourism. It would contribute to the promotion of tourism in Telangana.
- Strategic connection to other parts of the state
Mulugu is strategically connected to every major part of Telangana. It is well-connected with other parts of the country as well. The National Highway 163 passes from Mulugu to Chhattisgarh.
Commercial Real Estate Investment Opportunities in Mulugu
You can consider investing in commercial properties in the following areas in Mulugu:
You can consider investing in commercial properties in Warangal near Mulugu. Prices start from ₹29,724 per square foot. Warangal is a major area near Mulugu and is well-connected with other parts of the district.
You can also consider investing in commercial spaces in Ghanpur in Mulugu. Here, monthly rent starts from ₹30,000. There are multiple shopping complexes and banks in Ghanpur which also holds historical significance with a few temples built during the Kakatiya dynasty’s rule.
Things to Consider Before Purchasing a Commercial property in Mulugu
Discussed below are certain factors you must keep in mind before investing in commercial real estate in Mulugu:
- Location and Connectivity
Try to opt for a prime location to benefit from a locational advantage. Make sure the location is well-connected to other areas of the city. Availability of transportation facilities should not be a problem. It would be a good idea to invest in a property with banks, hospitals, educational institutions and shopping complexes around it as it holds the potential to generate a higher return in the future.
- Check Authenticity with RERA
Every builder in India must register themselves and the details of their projects on the RERA portal of their respective state. The Real Estate Regulatory Act was passed in 2016 to introduce transparency and accountability in the real estate sector in India.
When you decide to invest in a commercial property in Mulugu, make sure you check the details of the property on the RERA portal of Telangana.
- Builder’s Reputation
Another important factor you should not forget is conducting a background check of the builder. Check the status of the builder’s previous projects. Moreover, do not forget to check whether the builder is tied up in any court cases or not. Check whether the commercial property you have decided to invest in has any ongoing court cases or not.
- Infrastructural development
Do not forget that proper infrastructural development around your commercial real estate investment will improve future returns. So make sure you choose a location which has proper electricity, water supply, functioning elevators and staircases. If CCTV cameras are installed and there is a police station nearby, security concerns will be kept at bay.
- Lease structure
A lease structure is defined as a legal document which puts down on paper the working relationship shared by the investor and property owner. You can consult an advocate and real estate consultants to better understand the risks and prospects before investing in a commercial property and signing a lease structure.
Stamp Duty in Mulugu, Telengana
Do not forget to take into account the stamp duty rates in Telangana when you decide to invest in commercial real estate in Mulugu:
|Document||Stamp Duty Rates|
|Sale Agreement With Possession||5.5% (Adjustable)|
|Sale Agreement Without Possession||0.5% (Not Adjustable)|
|Development / Construction Agreement||0.5% (Not Adjustable)|
|Development / Construction Agreement cum GPA||1% (Not Adjustable)|
Registration Charges in Mulugu, Telangana
The following table represents the registration charges of Telangana:
|Sale Deed (in Gram Panchayat)||2%|
|Sale Deed (in other areas)||0.5%|
|Certificate of Sale||0.5%|
|Agreement of Sale cum General Power of Attorney||0.5% subject to a minimum of ₹5,000 and a maximum of ₹1,00,000|
|Development Agreement cum General Power of Attorney||0.5% subject to a minimum of ₹5,000 and a maximum of ₹1,00,000|
Mulugu Commercial Real Estate Sector: What’s the Forecast?
In 2021, the National Institute of Transforming India (NITI Aayog) stated that the Central Government would help in the comprehensive development of Mulugu. The authorities have recognised that this city, which is also the district headquarter, holds immense potential as a tourist destination. United Nations Educational, Scientific and Cultural Organization (UNESCO) declared the Ramappa Temple of Mulugu as a world heritage site in 2021. The city is also an important part of the tribal tourism circuit in the state.
In the year 2020, Mulugu’s GDDP (District Domestic Product) stood at ₹5,746 crore. DDP is described as the economic measure, in monetary terms, of all goods and services produced in a particular district during a particular period, accounted with no duplication. The city, which is renowned for good governance, has the potential to become an agricultural hub of the country if farmers focus on organic farming.
Moreover, the fact that Mulugu is located quite near Warangal is expected to further contribute to its economic development. Against this backdrop, if you invest in commercial properties in Mulugu, you will earn high returns.
Commercial Real Estate vs Other Asset Classes
Let us compare the returns generated by commercial real estate with that of other asset classes:
Commercial Real Estate vs Gold
While commercial real estate holds the potential of generating high returns, gold has the benefit of liquidity. It is also considered to be a safer investment option compared to real estate. During financial emergencies, people can easily liquidate gold, unlike commercial real estate where they have to first search for suitable tenants.
Commercial Real Estate vs Residential Real Estate
Commercial real estate delivers higher returns compared to residential real estate. An important factor to keep in mind is that the demand for residential properties is lesser than that for commercial properties. The latter also generates higher rental income, especially in the premium category, than residential real estate.
Commercial Real Estate vs Stocks and Mutual Funds
Both commercial real estate and stocks and mutual funds can deliver high returns. But, stocks and mutual funds are subject to market movements which make it difficult for investors to estimate exactly how much they will be able to earn. On the other hand, real estate delivers stable returns consistently as this asset class is much less volatile.
Commercial Real Estate vs Bonds
Both commercial real estate and bonds are stable sources of passive income. But bonds have lower credit risk than commercial real estate. There always remains the risk of tenants of commercial properties not making timely payments. Another important factor to consider is that commercial real estate investment is less liquid than bonds.
A tabular representation of the comparison between the different asset classes is as follows:
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
If you have plans of investing in top-rated bonds, register on our platform today. Register yourself and start investing at no additional or hidden cost.
Steps to Invest in Commercial Real Estate in Mulugu
Follow these steps to make commercial real estate investments in Mulugu in Telangana:
Step 1: Formulate a budget or the amount you wish to invest.
Step 2: Research the sites that will see a price increase soon and make a list of potential places according to your budget.
Step 3: Visit the sites to assess the ground situation minutely. Consult real estate experts or brokers to get an idea about the profitability and prospects of each site.
Step 4: Once you select a commercial space that matches your investment goals and budget, prepare the legal documents such as encumbrance certificate, title deed, sale agreement, etc.
Step 5: Complete the payment process. Do not forget to pay the requisite stamp duty and registration charges.
Step 6: Finally, you can consider purchasing an insurance policy which would lend an added layer of protection to you in case the commercial property undergoes serious damage.
You can consider making commercial real estate investments in Mulugu, Telangana, as the city is expected to undergo economic development soon. With the Central and State Governments joining hands to facilitate comprehensive development in Mulugu, investing in commercial properties will generate high returns in the future.
Frequently Asked Questions
What is the old name of Mulugu district?
Mulugu was formed in 2017 by bifurcating Jayashankar Bhupalpally district which was previously a part of Warangal district. This new district has 174 village panchayats and 9 mandals. Overall, there are 33 districts in Telangana.
What is the speciality of Mulugu district?
There are quite a few tourist attractions in Mulugu. Ramappa temple, Ramappa lake, Laknavaram lake, Bogatha Waterfall and Tadvai Forest Huts are some of the major tourist destinations. So, you can consider investing in commercial spaces catering to tourists.
Which is the major Tier 2 city near Mulugu?
Warangal is a major tier 2 city near Mulugu. The distance between these two cities is 51.7 km. It takes a maximum of 1 hour and 30 minutes to reach Mulugu from Warangal. The Government of Telangana plans to develop Warangal into a major economic hub which is set to deliver economic benefits to Mulugu as well.
Where can I make commercial real estate investments around Mulugu?
You can consider making commercial real estate investments in Warangal and Ghanpur; these locations are in close proximity to Mulugu and offer lucrative investment opportunities.