Guide for Nashik Commercial Real Estate Investment
Nashik is an ancient city that lies in the Northwest part of Maharashtra on the banks of the Godavari River. It is the 3rd largest city in the state after Mumbai and Pune. This city has mythological and religious importance due to its connection with Ramayan. Nashik is also home to ‘Trimbakeshwar,’ one of the 12 Jyotirlingas.
Nashik is ‘The Wine Capital of India’, reportedly producing 10,000 tonnes yearly. The largest and one of the most famous vineyards, Sula Vineyard is located here. Other than this, defence and aerospace manufacturing are some well-known industries creating employment in this city. The increasing employment rate makes this city more attractive for commercial real estate investors.
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Top Reasons to Invest in Nashik Real Estate
The top 3 reasons to invest in the commercial real estate of Nashik are as follows:
- Industrial Development
Nashik is the third most industrialised city of Maharashtra after Mumbai and Pune, with several major companies like CEAT, Crompton Greaves, Hindustan Unilever, Mahindra and Mahindra located here. There are a number of industrial regions in this city including the Igatpuri-Nashik-Sinnar Investment Region, a vital node of the Delhi-Mumbai industrial corridor.
This city has become a major centre of employment, resulting in soaring real estate prices.
Nashik has an excellent public transportation system which includes buses, taxis, local trains and metro lines. This makes travelling from one place to another convenient and faster.
Commercial Real Estate Investment Opportunities in Nashik
The following locations have the best opportunities for real estate investment in Nashik:
- Indira Nagar
It is a RERA-approved area of Nashik situated along the Mumbai-Agra Highway. It is also an industrial area housing various IT parks.
- Gangapur Road
Gangapur Road is a prominent Nashik road connecting the city centre to the city’s outskirts. In addition, it connects the major areas of Nashik to Mumbai and other industrial regions.
Things to Consider before Buying a Commercial Property in Nashik
Before buying a commercial real estate property in Nashik, one should consider the following factors:
- RERA Authenticity
RERA is a statutory body responsible for maintaining transparency in transactions between real estate agents and buyers. It is notified under the RERA Act 2016.
- Lease Structure
A lease is a legal contract between a commercial space owner and occupier for a certain length of time. A tenant must comprehend the structure of a lease document when assessing and analysing an investment.
Stamp Duty in Nashik
The stamp duty rates for commercial property sales in Nashik are as follows:
|Stamp Duty Rates
|Joint (Male + Female)
|Joint (Male + Male)
|Joint (Female + Female)
A local body tax (LBT) of 1% is included in the stamp duty. A buyer must pay this while purchasing any real estate property in Nashik.
Registration Charges in Nashik
The following are the registration charges for commercial properties in Nashik:
|Value of Property
|Below ₹30 lakh
|1% of the property value
|Above ₹30 lakh
It is essential to consider the rates of stamp duty and registration as they will be a part of your investment amount.
Nashik Commercial Real Estate Sector: What’s the Forecast
Around 2000 real estate projects have been approved in Nashik this year, and many upcoming projects are soon to get started. This amounts to 50,000 flats that Nashik Municipal Corporation has approved for construction. Moreover, construction work has restarted for 1000 projects, after disruption due to the 2nd wave of the COVID-19 pandemic.
Already, demand for real estate is high, with many prospective buyers making on-site visits to properties. This will bring a positive change to industrial, infrastructural and connectivity growth.
Commercial Real Estate vs Other Asset Classes
The following is a brief comparison between commercial real estate and other asset classes in terms of their ROI, risks and other factors:
- Commercial Real Estate vs Gold
Gold is a less volatile and safer investment than commercial real estate. In addition, gold offers better liquidity as it can easily be converted to cash, which is more difficult and time-consuming with real estate.
- Commercial Real Estate vs Residential Real estate
Residential real estate has lower rental prospects compared to commercial spaces. Moreover, it lacks demand compared to commercial real estate, especially in the premium category.
- Commercial Real Estate vs Stocks and Mutual Funds
Commercial real estate offers assured returns with direct asset ownership than stocks and mutual funds. Although the stock market may provide comparatively higher returns, it witnesses great fluctuation with higher risks.
- Commercial Real Estate vs Bonds
Bonds have a low credit risk in comparison to commercial real estate. Additionally, commercial property investments are more illiquid than bonds due to higher transaction costs resulting in a long time to find suitable property buyers.
A tabular representation comparing the asset classes based on returns, liquidity, risk, volatility and ticket price is given below:
|Commercial Real Estate
|Stocks & Mutual Funds
|Residential Real Estate
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Steps to Invest in Commercial Real Estate in Nashik
The steps to invest in commercial real estate in Nashik are:
Step 1: Estimate your budget.
Step 2: Do proper market research.
Step 3: Shortlist a few affordable sites.
Step 4: Go on a field tour and examine each site physically.
Step 5: Finalise a commercial property that is suitable for your needs.
Step 6: Analyse the official documents presented by the seller.
Step 7: Complete the stamp duty and registration formalities.
Step 8: Pay service fees to real estate consultants and brokers if you have availed their services.
Step 9: Cover your new property with an insurance policy.
Nashik has some of the largest companies such as Glaxo and the Mahindra Group, which have created drastic industrial growth. It is also experiencing major infrastructure and connectivity growth, leading to higher demand in the commercial real estate sector. However, you should do adequate research before buying a property to avoid fraudulent activities.
Frequently Asked Questions
Is Nashik a good place to invest?
Nashik has affordable settling down rates, making it a good place for investment. Moreover, it has a developing infrastructure, better transportation facilities and less traffic.
Is Nashik a developed city?
Nashik is one of the fastest developing cities in India and will soon become the education hub of India.
Any posh location for properties in Nashik?
Gangapur Road is a posh location in Nashik with huge commercial and residential complexes, schools, malls, and parks.
What are the cons of investing in commercial real estate?
The con of investing in commercial real estate is its lack of liquidity. In commercial spaces, it is very difficult to convert your asset into liquid cash at a short notice.