Guide for Nashik Commercial Real Estate Investment

6 min read • Published 20 October 2022
Written by Anshul Gupta
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.

Let us know more in detail!

Top Reasons to Invest in Nashik Real Estate

The top 3 reasons to invest in the commercial real estate of Nashik are as follows:

  1. 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.

  1. Connectivity

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:

  1. 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. 

  1. 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:

  1. 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.

  1. 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:

GenderStamp Duty Rates
Male6% 
Female5% 
Joint (Male + Female)5% 
Joint (Male + Male)6% 
Joint (Female + Female)5% 

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 PropertyRegistration Charges
Below ₹30 lakh1% of the property value
Above ₹30 lakh₹30,000

It is essential to consider the rates of stamp duty and registration as they will be a part of your investment amount.

Also Read: Guide for Pimpri Commercial Real Estate Investment

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:

Parameters Commercial Real Estate Stocks & Mutual Funds GoldResidential Real Estate Bonds 
ReturnsHighHighModerateModerateModerate
LiquidityLow HighHighLowModerate
RiskLow HighLowLowModerate
VolatilityLowHighLowLowLow
Ticket Size HighVariesLowHighVaries

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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.

Also Read: Guide for Gorakhpur Commercial Real Estate Investment

Final Word

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.

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Anshul Gupta

Co-Founder
IIT Roorkee Alumnus and CFA with experience of structuring debt products worth more than 15000Cr for institutional and retail investors.

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