Guide for Quthbullapur Commercial Real Estate Investment
Quthbullapur is a village in Hyderabad in the Medchal-Malkajgiri district of Telangana. Before its merger with Greater Hyderabad Municipal Corporation, it was a municipality. This place is very well connected with roads like Medchal Highway. It is one of the prime locations and the transport facilities are good here. Railway station is also situated nearby.
Foundation has been laid for an IT Park in Kandlakoya which will work to transform Quthbullapur into an IT Hub. Apart from this, there are a large number of shopping malls, internet cafes, and movie theatres present in this locality.
Keep reading to find out some reasons why investing in commercial real estate in Quthbullapur might turn out to be a profitable venture.
Top Reasons to Invest in Quthbullapur Real Estate
Here are some of the reasons why you might want to invest in commercial real estate in Quthbullapur:
- Social Infrastructure
There are a number of eateries like Domino’s Pizza and shopping malls like TNR North City Mall and Chennai Shopping mall present in the vicinity. General stores, grocery stores, supermarkets and other basic amenity shops are present nearby. Other than this, presence of certain schools makes it apt for residing as well. Therefore, investing in retail and hospitality real estate might turn out to be a profitable venture.
- Connectivity
Quthbullapur is well-connected via major roads, like Jeedimetla Road and Srinagar-Kanyakumari Highway. The major roads connect this city to other important roads like Quthbullapur main road and Suchitra road. You will find a number of local buses from HMT and Gajularamaram road bus stops which are situated within a 2 km radius. The nearest railway station is at Balanagar which is just 7 km away. The nearest airport is Rajiv Gandhi International airport which is just 41 km away.
Commercial Real Estate Investment Opportunities in Quthbullapur
Here are some of the locations that might be apt for commercial real estate investment in Quthbullapur:
- Jeedimetla
This locality is in the vicinity of an industrial area that has a number of pharma companies. Being a prominent industrial area, Jeedimetla attracts a large number of commercial real estate investors. You can find a large number of shops that offer all types of necessary goods.
There are movie theatres present in the vicinity as well. Transport facilities like that of Ola and Uber are even available late at night. Rate of commercial property in this locality ranges around ₹3 lakh to ₹9 lakh.
- Suchitra
This locality has excellent civic amenities and smooth connectivity. There are a number of shopping malls, supermarkets, restaurants, movie theatres, etc. Metro service is also available apart from bus, auto, cabs, etc. McDonald’s, Domino’s, Pizza Hut and KFC have their outlets here. Rate of commercial property in this locality ranges around ₹2,166 per square foot.
Things to Consider Before Buying a Commercial Property in Quthbullapur
Mentioned below are some of the points that you might keep in mind in case you are planning to invest in commercial real estate in Quthbullapur:
- RERA Approval
It is helpful if you can check the authenticity of both the builder who is constructing the property and the property itself so that you do not fall into any legal trouble later. You can check the authenticity by visiting the official website of RERA Telangana. Real Estate Regulatory Authority approval ensures that your property follows all the rules and regulations stated in the Real Estate Regulatory Authority Act of 2016.
- Market Research
Before purchasing a commercial property, it is good if you can spend some time analysing trends in the market. It is helpful if you can access the scope of any future developments in the locality because that is what will attract people to invest in commercial real estate properties here. It is believed that investing in a developing area is a more lucrative option than investing in an already developed area.
Stamp Duty in Quthbullapur, Telangana
The Telangana state government has made it mandatory to register the sale of property with Telangana Registration and Stamp Department. Rate of stamp duty to be paid in case you purchase a property in Quthbullapur is as follows:
Document | Stamp Duty |
Sale Agreement with Possession | 4% |
Sale Agreement without Possession | 0.5% |
Sale Agreement with GPA | 5% |
Sale of Semi Furnished Flat | 4% |
Will | Not Applicable |
Registration Charges in Quthbullapur, Telangana
In Telangana, property buyers need to pay registration charges by visiting the nearest sub-registrar’s office. Here is the rate of registration charges applicable to properties in Quthbullapur:
Document | Registration Charge |
Sale Agreement with Possession | 0.5% of Property’s Worth that is a minimum of ₹5,000 and a maximum of ₹20,000 |
Sale Agreement without Possession | 0.5% of Property’s Worth that is a minimum of ₹5,000 and a maximum of ₹20,000 |
Sale Agreement with GPA | ₹2,000 |
Sale of Semi Furnished Flat | 0.5% |
Will | ₹1,000 |
Quthbullapur Commercial Real Estate Sector: What’s the Forecast?
Quthbullapur is a fast-growing locality due to its proximity to the mainstream areas. This place has seen a boom in the real estate sector due to the recent infrastructural development. Due to construction of quality residential projects, many more commercial complexes like shopping malls, supermarkets, and restaurants will also come up to meet the requirement of the residents.
A total of ₹500 crore is going to be used by the government for road widening works, a multipurpose function hall, a sports-themed park and a sewage treatment plant in Quthbullapur constituency. Several underpasses and flyovers are also under construction to ease the city’s traffic problems.
Construction of new bridges, underpasses, service roads and elevated corridors will help a lot in decongesting prime areas and ease traffic and daily lives in this area. Therefore, investing in commercial real estate today might earn you great returns in the near future.
Commercial Real Estate vs Other Asset Classes
Let us take a look at the comparison between commercial real estate and other asset classes:
Commercial Real Estate vs Bonds
Bonds are a safe and secure asset, unlike real estate which is risky and volatile. In terms of returns, however, real estate is considered much better than bonds. You can also avail tax benefits with real estate investments.
However, if you want to invest in an asset that offers stable returns at low-risk, you can register on our website. Choose from the wide range of bonds that you can invest in.
Commercial Real Estate vs Residential Real Estate
Commercial real estate is much less risky as tenants sign a loan agreement for a longer tenure than residential properties. In case of commercial real estate investment, you can earn much higher returns as well.
However, tenants are easier to find in case of residential real estate. You can even earn tax benefits in case you purchase a residential property using a home loan.
Commercial Real Estate vs Gold
Real estate lets you earn income every month which is not the case with gold. However, gold is much better if we compare its liquidity with that of real estate. You can invest for both short term and long term in the case of gold; however, real estate is apt for only long term investments. However, gold prices are highly volatile as they depend on various macroeconomic factors.
Commercial Real Estate vs Stocks & Mutual Funds
Stocks and mutual funds are much more volatile and risky in comparison to real estate. However, returns generated from stocks and mutual funds are much higher. In terms of consistent returns, real estate is a better investment option as you can generate monthly passive income.
Below is the tabular representation of comparison between different asset classes on the basis of returns, liquidity, risk, volatility and ticket size:
Parameters | Residential Real Estate | Stocks & Mutual Funds | Gold | Commercial Real Estate | Bonds |
Returns | Moderate | High | Moderate | High | Moderate |
Liquidity | Low | High | High | Low | Moderate |
Risk | Low | High | Low | Low | Moderate |
Volatility | Low | High | Low | Low | Low |
Ticket Size | High | Varies | Low | High | Varies |
Steps to Invest in Commercial Real Estate in Quthbullapur
Here are the steps that you can follow to invest in commercial real estate in Quthbullapur:
Step 1: Decide your investment budget.
Step 2: Prepare a list of all the properties which might be suitable for commercial real estate investment.
Step 3: Contact a local broker who has prior experience with commercial property and visit every location on your list.
Step 4: Check whether all the property papers are authentic or not as well as whether the property is RERA approved or not. Finalise a property accordingly.
Step 5: Make the necessary arrangements and pay for the property.
Step 6: Consult a lawyer and complete all legal formalities like preparing the necessary documents.
Step 7: Pay for the property. Make sure to pay the required stamp duty and registration charges.
Step 8: Lastly, consider purchasing insurance for your property to get financial coverage in case your property incurs any damage in the future.
Final Word
An ample number of residential and commercial properties are present in Quthbullapur; however, many more are on the verge of completion and occupancy. This is due to the constant infrastructural upgrades that are taking place in this town.
Make sure to conduct thorough property analysis before investing in any type of commercial real estate.
Frequently Asked Questions
What are the different types of commercial real estate properties available?
Types of commercial real estate properties available in the market are office spaces, industrial spaces, multi-family dwellings, hospitality and retail spaces.
What is the difference between a registry and power of attorney?
A registry is like a database that has all the important documents stored. On the other hand, power of attorney is the right given by the owner of the property to someone who has the power to deal with the property under certain circumstances.
What things should I check before signing the purchase agreement?
Before signing the purchase agreement, you need to check certain details mentioned in the agreement for sure. These are base price of the property, carpet area as well as other facilities available, any additional charges like club membership, PLC, payment mode, taxes applicable, schedule of possession, property insurance, occupation certificate, and penalty clauses in case the builder delays the project.
What taxes do I need to pay at the time of purchasing a property?
Other than the price of property you need to pay a number of taxes while purchasing a property. These are stamp duty, registration charges, tax deducted at source, service tax, etc.