Guide for Tiruchirappalli Commercial Real Estate Investment

Trichy, or Tiruchirappalli, earns recognition as the cleanest and the most liveable city in Tamil Nadu. Moreover, it is the fourth-largest urban agglomeration in this state and the fifth-safest town for women in India.  

This city lies between Palani and Shevaroy Hills at the state’s centre. Agricultural areas are on the outskirts of the borders of Tiruchirappalli. However, owing to urbanisation, several industrial parks are located in the northern parts of Trichy. Trichy includes some of the largest industries like Bharat Heavy Electricals Limited (BHEL), Ordnance Factory Tiruchirappalli (OFT), Golden Rock Locomotive Workshop, etc.

Tiruchirappalli is also a famous tourist destination, known for being the temple town of Tamil Nadu. In addition, it has a central railway hub and an international airport. All of these factors provide ample opportunities for commercial property investments in Trichy. 

The following sections will cover everything you need to know about investing in Tiruchirappalli commercial real estate. 

Top Reasons to Invest in Tiruchirappalli Real Estate

Here are a few reasons why you may consider investing in Tiruchirappalli real estate:

Geographic Location

The location of Tiruchirapalli is in the middle of Tamil Nadu. Excellent roadways make accessibility easier from Tiruchirappalli to Chennai. Its proximity to major seaports on the East coast also acts as a benefit for Trichy’s economy. 

These factors attract tourists and big industries to this city. Therefore, one can find growth opportunities when investing in commercial properties in Tiruchirappalli.

Overpopulation in Chennai

Chennai, the capital city of Tamil Nadu, hosts many big and small industries and companies. However, Chennai’s overcrowding has led many companies to shift their premises to new places. . Due to its strategic location, Tiruchirappalli attracts major industries.

Tourism

Tiruchirappalli hosts several ancient rock-cut temples. It also has a historical connection with Greece, Italy and Middle East nations. Tourists can easily visit here from Chennai and other neighbouring states owing to the excellent transportation infrastructure here.

Growing tourism is leading to the development of hotels and restaurants in this city. Also, several resorts with modern amenities and similar projects are coming up to welcome and entertain tourists. 

Source of Passive Income

The growing demand for office spaces, showrooms, hostels, resorts and corporate parks makes commercial properties a source of steady passive income in Trichy. You can earn a considerable sum with relatively low effort if you invest in the right commercial property that serves your tenants’ needs. 

Commercial Real Estate Opportunities to invest in Tiruchirappalli

Here are a few locations you may consider for commercial real estate investment in Tiruchirappalli:

Samayapuram

Samayapuram is a locality  on the Tiruchirapalli-Chennai Highway. It features the auspicious Samayapuram Mariamman Temple and some private and government hospitals. In addition, commercial properties in this region can serve as hotels and shops for pilgrims and other visitors. 

Musiri

Musiri is a suburban locality near Tiruchirappalli. The distance between Tiruchirappalli and Musiri is 32 kms. Several buses run daily to make Musiri accessible from Trichy. You can find several commercial plots and buildings to invest in Musiri.

Things to Consider before Buying a Commercial Property in Tiruchirappalli

Here are some essential points investors should consider before purchasing commercial real estate in Tiruchirappalli:

Infrastructure

Most tenants today prefer modern or urban infrastructure while choosing hotels, resorts, or office spaces. Therefore, as investors, you must conduct proper research on the facilities that make your property distinct from others. 

It  may include proper ventilation, an attractive façade and a well-equipped parking lot to attract more tenants.

Lease Structure

A lease is a legal document that binds investors and builders for a specific period. As an investor, you must know all clauses mentioned in the lease structure. If you need help comprehending the terms of a lease agreement, consider seeking help from legal advisors. 

Credible Builder

If you are investing in an under-construction building, consider researching the builder’s profile. To do so, you must   look into a builder’s past  and successful projects. It  will allow you to make an informed decision when purchasing. You can also cross-verify the documents provided by builders by contacting their previous investors. 

RERA  Authentication

The Real Estate (Regulation and Development) Act of 2016 monitors India’s real estate industry. The Real Estate Regulatory  Authority (RERA) body helps to fulfil this goal. 

Every builder and broker in Tiruchirappalli must register their properties on the RERA portal of Tamil Nadu. You can verify the authenticity of all commercial properties in Tiruchirappalli from here. 

Stamp Duty in Tiruchirappalli

This table displays the stamp duty applicable to commercial properties in Tiruchirappalli:

Registration Charges in Tiruchirappalli

The residential charges to purchase commercial property in Tiruchirappalli are given below:

Also Read: Guide for Aurangabad Commercial Real Estate Investment

Tiruchirappalli Commercial Real Estate Outlook

Tiruchirappalli is famous for its tanneries and cigar manufacturing companies. Also, there is a growing demand for markets and retail shops with growing residential areas here.

Bharat Heavy Electricals Limited (BHEL) operates in Trichy with three functioning plants. Following Chennai and Coimbatore, Tiruchirappalli is another growing IT hub in Tamil Nadu. Techmanctix Technologies, Astonish Infotech, and Maac Technologies are some of the top IT companies in Tiruchirappalli.

Therefore, commercial properties such as warehouses for manufacturing industries or office spaces for IT companies would be highly lucrative investments. After thorough research, investors can look for opportunities to invest in these sites to earn considerable returns.

Commercial Real Estate vs Other Assets

Here are some essential points of difference between commercial real estate and other assets in terms of ROI:

Commercial Real Estate vs Bonds

Both commercial real estate and bonds are great sources of passive income. However, the liquidity of bonds is comparatively higher than commercial property. 

Commercial Real Estate vs Gold

You can earn higher returns from commercial properties than gold investments. However, commercial real estate carries much lower liquidity, as finding suitable tenants is time-consuming. 

Commercial Real Estate vs Residential Real Estate

Commercial properties are more expensive than residential ones, so the former usually yields high ROI. However, because of its soaring price, commercial real estate owners carry higher credit risk than residential properties. 

Commercial Real Estate vs Stocks and Equity Mutual Funds

Investing in commercial properties in Tiruchirappalli promises a more stable ROI than stocks and equity mutual funds, as the stock markets are volatile. Hence, investors need a thorough knowledge of this marketplace and high-risk tolerance. 

The table  below depicts a comparative analysis of assets based on their liquidity, volatility, ticket size, and risks.

If you wish to invest in bonds with stable returns and low risks, browse our home page. Here, you will find a list of top-rated bonds trending in the market. Register now to invest in bonds with no hidden or additional charges. 

Steps to Invest In Commercial Real Estate in Tiruchirappalli

Step 1: Finalise your budget for investing in commercial property.

Step 2: Conduct thorough research on potential locations and sites that have the potential to develop in future.

Step 3: Shortlist a few sites that suit your budget.

Step 4: Conduct on-site research to analyse the ground situation closely. You may also consult various real estate consultants to know the prospects for developing these sites. 

Step 5: Finalise a commercial property that fits your budget and investment goals.

Step 6: Prepare official documents like Foundation Certificate, Title Deed, Property Assessment Extract, etc.  

Step 7: Complete the stamp duty and registration formalities to transfer the property in your name.

Step 8: You need to pay service fees to brokers or real estate consultants if you are availing  their services.

Step 9: Finally, you may cover your newly purchased property with an insurance plan. It will safeguard your finances in case of any damage to your property.

Also Read: Guide for Haora Commercial Real Estate Investment

Final Thoughts 

Owing to the growth of big and small industries and IT companies and an increase in demand for real estate, one can tap into good ROI by purchasing commercial properties in Tiruchirappalli. However, investors must adhere to RERA norms while purchasing commercial properties. It  will help safeguard them from any form of fraudulent activity. 

Frequently Asked Questions (FAQs)