Guide for Murwara Commercial Real Estate Investment
Murwara is located on the banks of the River Katni in Madhya Pradesh. Being a leading trade centre, some major industries here include rice and flour milling, fuller’s-earth processing plant, and many more. It also has bauxite and limestone industries nearby, and all of these generate a lot of employment opportunities.
Moreover, this place also provides access to many important areas through roads and railways. All these features are creating the demand for investing in commercial real estate in Murwara.
Top Reasons to Invest in Commercial Real Estate Property in Murwara
The reasons to invest in the commercial real estate property of Murwara are as follows:
- Developing Connectivity
Murwara has a good connectivity system through roads and railways, which is improving every year. Moreover, this location is connected to important highways like Old NH 7, improving accessibility to distant places.
Murwara is an affordable area, with commercial property prices starting from approximately ₹200 per square foot. Being a trade centre, such affordable property prices increase its demand among investors.
Commercial Real Estate Investment Opportunities in Murwara
The locations having the best opportunities for commercial real estate investments in Murwara are:
- Madhav Nagar
Madhav Nagar is one of the most affordable locations for investing in commercial real estate property. It also provides great connectivity through roads, highways and railway lines.
- Khirahni Police Chowki
Being near the police station, this area is safe for commercial and retail properties. Moreover, this area is also home to multiple hotels and restaurants because the railway station is nearby.
Things to Consider Before Buying a Commercial Real Estate Property in Murwara
The things to consider before buying a commercial real estate property in Murwara are as follows:
- RERA Verification
The Real Estate Regulatory Authority (RERA) is a statutory body that promotes transparency and accountability in India’s real estate industry. It was notified after the enactment of the RERA Act of 2016.
You can check the authenticity of the property and its builder in Murwara by visiting the RERA website of Madhya Pradesh.
- Builder’s bio-data
If you are planning to invest in a particular builder’s property, check their past projects and status. You must check whether there are any ongoing court cases against the chosen property or its builders.
Stamp Duty Rates in Murwara, Madhya Pradesh
The stamp duty rates for commercial property in Murwara are in the following table:
|Gender||Stamp Duty Rates|
|Joint (Male + Female)||7.5%|
|Joint (Male + Male)||7.5%|
|Joint (Female + Female)||7.5%|
Registration Charges in Murwara, Madhya Pradesh
The registration charges for commercial real estate in Murwara are in the table below:
|Joint (Male + Female)||3%|
|Joint (Male + Male)||3%|
|Joint (Female + Female)||3%|
It is essential to consider the registration charges and stamp duty rates as they will be a part of your investment amount. These charges should also be noted while planning the budget.
Commercial Real Estate Sector in Murwara: What’s the Forecast?
Murwara is one of the fastest-growing cities in that area, with huge employment opportunities in several sectors, such as finance, IT and banking. The entire state has witnessed a 15-20% rise in construction costs, especially after the spread of Covid 19. Here, cement prices have witnessed a 30% hike overall. All these have influenced the cost of property in all the places of Madhya Pradesh, including Murwara.
Commercial Real Estate vs Other Asset Classes
Here are the differences between commercial real estate and other asset classes:
- Commercial Real Estate vs Stocks and Mutual Funds
Stocks and mutual funds witness higher fluctuations than commercial property, making it tough for investors to estimate the returns. Investing in the commercial real estate industry is less volatile than investing in stocks and mutual funds.
- Commercial Real Estate vs Residential Real estate
The vacancy risks for residential properties are higher in comparison to a commercial estate with the given frequent turnover of tenants. Moreover, residential property needs to be leased annually, but office spaces can be leased for longer tenures.
- Commercial Real Estate vs Gold
Real estate investments are generally for the long term and offer assured capital appreciation; however, returns from gold investments depend on market sentiments. Additionally, real estate can be an excellent source of passive income, which is not the case with gold.
- Commercial Real Estate vs Bonds
Bonds have a low credit risk than commercial real estate properties. Moreover, commercial property investments have low liquidity than bonds due to higher transaction costs and the long time it takes to find a suitable buyer.
A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
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Steps to Invest in Commercial Real Estate in Murwara, Madhya Pradesh
The steps to invest in commercial real estate in Murwara, Madhya Pradesh, are as follows:
Step 1: Finalise your investment budget and conduct proper market research.
Step 2: Shortlist some sites and plan a field visit to these sites to analyse them minutely.
Step 3: Once you finalise a property, prepare the official documents such as sale deed, title agreement, encumbrance certificate, building plan, etc.
Step 4: Complete the payment process. Make sure to complete registration charges and stamp duty formalities.
Step 5: Lastly, consider purchasing an insurance plan to get financial coverage in case your property incurs any damage in the future.
The outlook for commercial real estate sector in Murwara is witnessing positive changes considering its rapid connectivity and industrial growth. Due to low property value, the demand for commercial property among investors is also increasing day by day. However, it is also necessary to conduct proper market research before purchasing a property to avoid fraudulent activities.
Frequently Asked Questions
Q1. What documents are required for registering a new property in Madhya Pradesh?
Ans. The documents required for registering a new property in Madhya Pradesh are Sale Deed, NOC from the builder and banks, Completion Certificate, Building Plan approvals, PAN Card and Photographs.
Q2. Is Murwara a rural or an urban area?
Ans. Murwara is an urbanised village in Madhya Pradesh with a total area of 604 square km. Here, 68.59% of the total population lives in the urban area, and the remaining 31.41% population lives in the rural area.
Q3. What is the stamp duty rate on gift deeds in Madhya Pradesh?
Ans. In Madhya Pradesh, the stamp duty on gift deeds to family members is 1% of the market value, which must not exceed ₹1000. However, if this gift deed is to others, stamp duty will be 5% of the property’s market value.
Q4. What are the taxes that need to be paid before buying a real estate property?
Ans. The taxes that need to be paid before buying a real estate property are Tax Deducted at Source (TDS), stamp duty, registration charges, and service tax, if any.