Guide for Satna Commercial Real Estate Investment

Situated in the northeastern part of Madhya Pradesh, Satna is the 8th most populous and 7^th largest city of the state. The city is often referred to as the “cement city of India” because it houses a large reservoir of limestone and dolomite.

Satna, also known as Bhatgarh or Shat Nagar, is the commercial capital of the Baghelkhand region. Agriculture is undoubtedly one of the dominant sectors that have contributed to Satna’s economic growth. Though the industrial sector holds a strong influence over the state’s economy, agrarian economy is still one of its important pillars. 

With extensive developments and a promising future, Satna has become one of the fastest-emerging cities in the state. With respect to connectivity, the nearest railway station is Satna railway junction, which connects it to major cities of Madhya Pradesh.

Find out how this city stands out among other cities of Madhya Pradesh in becoming a prominent location for commercial real estate investment.

Top Reasons to Invest in Satna Commercial Real Estate

Check out some of the top reasons that make Satna an ideal place for commercial real estate investors: 

• Industrial Sector

Because of the presence of robust industrial sector in Satna, the city has gained much economic success. There are many small, medium, and large scale units that are operating in different adjoining areas of Satna city. Most of these industries comprise cement, agro-based, leather, minerals and ready-made garments. 

Some prominent industrial areas of Satna include Ghoordang industrial area, Satna industrial area, Itmakothar industrial area, Karmshala unchehara shed, and Maihar industrial area. 

• Service Sector

The industrial sector of Satna has majorly fuelled the growth of its service sector as well. BPO, banking, hospitality and the healthcare sector have contributed to the overall economy of Satna. Thus, the service sector has laid a strong foundation for the city’s economy to drive it into greater heights in the future. 

• Tourism Industry

The city is known for many places of historical and religious importance. Some tourist places that are worth mentioning include Khajuraho temples in Bharhut, Shiv temple in Birsinghpur village, Chitrakoot Dham, Madhavgarh fort, Rawatpura sarkar ashram, Sharda devi temple in Maihar, etc. 

Thus, all these factors contribute towards development of the real estate sector in Satna.

Commercial Real Estate Investment Opportunities in Satna

Some of the most sought-after areas in and around Satna that are good for commercial real estate investment are as follows: 

• Maihar

Situated in the Satna district of Madhya Pradesh, Maihar is a popular city known for Maa Sharda devi temple. Being located at the top of Trikoota hill, one needs to climb up 1063 steps to reach this temple. Apart from this, some other significant tourist places include Oila temple, Bada Akhanda temple, Badi Maai temple, Purva Waterfalls, etc.

Additionally, Maihar is also well-known for the Pannikhoh caves, Nav Ratna festival, etc. Many guest houses and hotels have developed over the past few years to cater to the increasing number of tourists visiting this place. The price of a commercial showroom in Maihar would cost around ₹12,500 per sqft.

• Bharhut Nagar

Bharhut Nagar is one of the most well-known localities situated in Rewa division of Satna, Madhya Pradesh. NH39 and NH30 are two highways that connect this locality to its adjacent areas like Siddhart Nagar, Ghanshaym Vihar Colony, Jeevan Jyoti Colony, Sangram Colony, etc. 

The railway stations near Bharhut Nagar include Kaima railway station and Satna junction railway station. The price of a commercial property in Bharhut Nagar would cost around ₹14,377 per sqft.

Apart from these, you can also look out for commercial real estate properties in Chitrakoot road, Nagod, Raghuraj Nagar, Transport Nagar, etc.

Things to Consider Before Buying a Commercial Property in Satna

Before you invest in a commercial property in Satna, it is important to consider the following factors: 

• Location

Location is the key when you are looking for a commercial property in a city. Always choose a property in a location that is easier to access and where foot traffic is substantial enough. Also, if your property is located in a prime location, you will be able to get higher rental values on it.

• Social Infrastructure

The social infrastructure of your property also matters a lot when it comes to purchasing any commercial property. Always check whether the locality has shopping centres, restaurants, or hotels nearby to ensure that people could visit these places more often.

• Facilities Available

While opting for a commercial property, make sure that it has access to all the basic amenities and facilities. Also, you must check whether the facilities available seem suitable enough as per your business requirements. 

• RERA Authentication

In order to encourage more investors to invest in the real estate sector, RERA was established, under the RERA Act of 2016. Apart from introducing transparency, it prevents investors from engaging with fraud owners. Any property that is registered under RERA will be authentic. 

So, before opting for a commercial property in Satna, ensure to visit the MP RERA site to check the authentication of the property.

Stamp Duty in Satna

The table given below shows the current stamp duty charges on a property in Satna: 

Registration Charges in Satna

Check out the registration charges on a property in Satna from the table given hereunder: 

The overall registration charges on a property should also include panchayat and municipal fees, if applicable.

Satna Commercial Real Estate Sector: What’s the Forecast?

Satna was selected to be a part of the Smart Cities program of the Government of India which includes Pan-city proposals as well as ABD project. The total cost of the project was estimated to be around ₹1530.74 crore, out of which ₹285.64 crore was for PAN city projects and ₹1171.41 crore was for ABD project.

In order to improve the quality of the lives of Satna’s residents, several ICT-based smart solutions along with smart features were implemented following the SCM guidelines under PAN-city initiatives. Also, the ABD project was implemented which includes the development of smart infrastructure and smart ICT-based services outside the town at a distance of approximately 7 km from railway station. 

Additionally, the Managing Director of Damodar Ropeways & Infra Limited (DRIL) has recently improved the amenities and facilities for pilgrims at Maihar Devi. Some major areas of work that are under progress include medical facilities, drinking water facilities, renovation of entire campus, and so on. Apart from this, the completion of the Satna-Amarpatan road upgradation project and the Satna-Rewa railway line doubling project have added more dynamism to the city’s infrastructure.

This upgradation will bring more visitors to this place and also improve the real estate development in and around Satna.

Commercial Real Estate vs Other Assets

Check out the key differences between commercial real estate and some other asset classes to understand which investment option will be better for you.

• Commercial Real Estate vs Mutual Funds and Stocks 

What makes stocks and mutual funds an appealing option for most investors is their high liquidity and excellent returns. However, one can invest in commercial real estate as it is considered less risky and one can earn passive income through it. Also, stocks and mutual fund investments do not require a huge cash infusion, while commercial real estate requires a higher quantum of investment. 

• Commercial Real Estate vs Gold

When compared with gold, commercial real estate investment is a more secure and profitable investment option. However, investment in real estate requires huge investment, while you can invest in gold as per your investment capacity. 

Though gold offers more liquidity, the value of gold is more volatile. Also, gold investment is an investment option for both long and short tenure while commercial real estate investment is good for long-term investment only.

• Commercial Real Estate vs Residential Real Estate 

In residential real estate, low entry-level investment is required and is considered riskier. On the other hand, commercial real estate investment is considered less risky but involves higher entry-level investment. Another advantage of investing in commercial real estate is that you will be able to receive higher returns because it comes with longer lease durations, unlike residential real estate.

• Commercial Real Estate vs Bonds 

You can get a predictable and fixed return on investment by investing in bonds, while these are susceptible to changing market rates. However, investing in commercial real estate involves less risk. So, you will be able to receive moderate returns throughout. If you tend to invest in high-rated bonds, it carries less risk. 

Do you want to invest in top-rated bonds? Visit our homepage and choose a bond to gain profitable returns on investments. 

Here is a tabular representation of a comparison of commercial real estate with different other assets

Steps to Invest in Commercial Real Estate in Satna

Follow the steps given below for investing in a commercial property in Satna:

Step 1: Estimate the affordability of the real estate property depending upon your income and savings capability.

Step 2: Look for the properties of your choice and shortlist some of them based on your requirements

Step 3: Consult with your broker before finalising your property. 

Step 4: Finalise your property and make sure you verify all the property details by visiting the RERA website.

Step 5: Ensure to check all the property documents and verify them.

Step 6: Complete the payment procedure including all additional charges like stamp duty, brokerage charge, registration charges, etc.

Step 7: Insure your property under a good insurance policy. 

Final Word

The city of Satna is undoubtedly blessed with a plenitude of sites of historical and religious significance, which make it a popular tourist destination. Keeping this in mind, the State Government has also taken the initiative to contribute to its infrastructural development. Thus, the rising economic profile of Satna has a positive impact on its service sector as well as the real estate sector. 

So, investors looking for a promising location for real estate investment can choose Satna for commercial properties. 

Frequently Asked Questions