Guide for Singrauli Commercial Real Estate investment
Singrauli is a city in Madhya Pradesh which was previously the capital of a princely state. It is famous for its coal mines and power plants, making it India’s Energy Capital. It also has many industries here, and all of these generate a major portion of employment. Moreover, these thermal and coal stations produce 10% of the total installed capacity of India.
Thus, the demand for all these power plants and their generating employment makes it popular among builders to invest in commercial real estate here.
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Top Reasons to Invest in Commercial Real Estate Property in Singrauli
The top 2 reasons to invest in the commercial real estate property of Singrauli are as follows:
- Developing Connectivity
Singrauli has a developing connectivity with good roads and railway, which is improving every year. Moreover, this location is home to a larger community of people who can access their offices easily.
- Job Opportunities
Singrauli is home to many industries and a coal mine, offering numerous job opportunities. Moreover, this location is near many important residential areas surrounding it, attracting builders to invest here.
Investment Opportunities in Commercial Real Estate in Singrauli
The locations having the best opportunities to invest in commercial real estate properties in Singrauli are as follows:
Waidhan is one of the famous commercial real estate areas in Singrauli due to the presence of many job opportunities here. The connectivity to this area through roads and railways is also very convenient. Moreover, the presence of coal mines in this area also makes it important.
Rewa is an upcoming location for commercial real estate with developing infrastructure and job opportunities. It also has great connectivity to many important areas through roads and railways, which are very near to this location.
Things to Consider Before Buying a Commercial Real Estate Property in Singrauli
The main things to consider before buying a commercial real estate property in Singrauli are as follows:
- RERA authenticity checker
RERA is a statutory body promoting transactions between real estate agents and buyers. It was notified by the RERA Act 2016. Here, one can check the authenticity of the builder and their property by visiting the RERA website of Madhya Pradesh.
- Lease Structure
A lease is a legal agreement defining the relationship between a property owner and occupier. While analysing an investment, the tenant must understand its lease structure and risk involvement to avoid fraudulent activities.
Stamp Duty Rates in Singrauli, Madhya Pradesh
The stamp duty rates for commercial property sales in Singrauli 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 Singrauli, Madhya Pradesh
The list of registration charges for commercial real estate sales in Singrauli is in the table below:
|Joint (Male + Female)||3%|
|Joint (Male + Male)||3%|
|Joint (Female + Female)||3%|
It is essential to consider the stamp duty rates and registration charges as they will be a part of your investment amount. These charges should also be noted while planning the budget.
Commercial Real Estate Sector Forecast in Singrauli
Singrauli is witnessing a drastic change in the commercial real estate sector due to the developing connectivity of this city, joining many important locations. Most importantly, a new airport is under-construction in Waidhan, namely Khajuri-khutar airport, to improve accessibility through airways.
Being a mining zone, it initially had very bad roads, causing disturbances in transportation. Hence, the Government has put their focus on developing new 4-lane and 6-lane highways for ease of vehicular movement. Some of these are NH 75, NH 75E, and NH 78.
Commercial Real Estate vs Other Asset Classes
The difference between commercial real estate and other asset classes is conducted on the basis of the following:
- Commercial Real Estate vs Stocks and Mutual Funds
Commercial real estate offers assured returns with direct asset ownership if we compare them with the stock market on an aggregate level. On the other hand, the stock market witnesses great fluctuation with higher risks but provides comparatively higher returns.
- Commercial Real Estate vs Gold
Real estate is a stable investment option offering low risks with additional tax benefits and generating passive income. On the contrary, gold is just a commodity which has higher volatility and risks of being stolen, but commercial property has no risk of being stolen.
- Commercial Real Estate vs Residential Real estate
Residential property faces a lack of demand than commercial space, especially in the premium category. Moreover, the vacancy risks for residential properties are higher in comparison to a commercial estate with the given frequent turnover of tenants.
- Commercial Real Estate vs Bonds
Bonds have a low credit risk than commercial real estate properties. Additionally, commercial property investments are more illiquid than bonds due to higher transaction costs and a longer time 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 Singrauli, Madhya Pradesh
The steps to invest in commercial real estate in Singrauli, Madhya Pradesh, are as follows:
Step 1: Conduct proper market research.
Step 2: Finalise your financial budget.
Step 3: Shortlist some budget-friendly sites.
Step 4: Make a field visit to these sites and analyse them minutely.
Step 5: Finalise a commercial real estate property that is suitable.
Step 6: Prepare official documents and purchase the property.
Step 7: Complete registration charges and stamp duty formalities.
Step 8: Pay service fees to real estate consultants and brokers if availed of their service.
Step 9: Cover your new property with an insurance plan.
Considering the rapid industrial growth and development, the commercial real estate sector of Singrauli is witnessing positive changes in terms of connectivity and infrastructure. This positive change is attracting promoters towards this area resulting in increasing demand for building office spaces. However, it is also necessary to conduct thorough market research before doing so to avoid any fraudulent activities.
Frequently Asked Questions
Q1. Is Singrauli good for investing in commercial or residential real estate?
Ans. Investing in both commercial and residential real estate is ideal in Singrauli. For commercial real estate, the city has thermal plants generating employment throughout the year. Moreover, with great accessibility through roads and railways, it connects the residential side to the commercial side very well.
Q2. Is Singrauli a rural or an urban area?
Ans. Singrauli consists of both a rural and an urban side. The rural outskirts are majorly home to power plants, whereas the urban areas consist majorly residential and office areas. However, there are some people living in a rural areas, especially power plant workers.
Q3. Is it mandatory to pay registration fees and stamp duty charges in Singrauli?
Ans. Yes, it is mandatory to pay registration fees and stamp duty charges in Singrauli whenever a property is purchased for registering it by the owner’s name. This process can also be done online method, in an easy and less time-consuming way.
Q4. Does Singrauli have any airport?
Ans. Singrauli currently does not have any airport of its own, and the nearest airport, Varanasi Shastri domestic Airport, is at Babatpur. However, the Khajuri-khutar airport near Waidhan, Singrauli, is under construction, and completion of this will make the area more accessible via airways.