Guide for Tirunelveli Commercial Real Estate Investment
Known as Nellai, Tirunelveli is a major city in Tamil Nadu. It is well-connected by road and railways to the rest of Tamil Nadu and the whole of India. Industries in Tirunelveli include agricultural trading, banking, information technology, agricultural machinery, etc.
Hand-woven clothes, spinning and weaving, and wind-power generation are some of this city’s specialties . Tata Group is also planning to open a Titanium Dioxide plant in this district. Tirunelveli has two Special Economic Zones – one in Gangaikondan and another in Nanguneri. It is also home to several MNCs, such as Indian Oil Corporation Limited, Alliance Tyre Group, Ramco Cements, and India Cements.
Let us now understand why investing in commercial real estate might be a profitable venture in Tirunelveli:
Top Reasons to Invest in Tirunelveli Real Estate
Here are the top reasons why you should invest in commercial real estate in Tirunelveli:
- Industrial Area
Tirunelveli has cement manufacturing factories, tobacco companies, cotton textile mills and small-scale industries like brick kilns and tanneries.
Apart from this, there are food-processing industries, rice-making, and blue-jelly metal manufacturing units on the outskirts of the city. All these establishments make Tirunelveli an ideal location for commercial real estate investment.
This city has extensive transport networks. It is located in close proximity to NH-44. The main bus stand of the city has been developed under the Smart City Project. Tirunelveli Junction railway station is also one of the oldest in the country. Tuticorin Airport is at a distance of just 22 km east of Tirunelveli and has regular flights to Chennai and Bangalore.
Commercial Real Estate Investment Opportunities in Tirunelveli
Here are some localities in Tirunelveli that are suitable for commercial real estate investment:
There are many shopping malls, multiplexes, hospitals, banks, and hotels here; therefore, it is apt for retail investments. Transportation facilities are also developing at a fast pace. The area is really clean and hygienic. The rate of property here may range as high as ₹2,339 per square foot.
It is one of the prime localities in Tirunelveli and is ideal for offices, shops, and service centers . This area is safe and secure and has great connectivity due to the presence of the Palai bus stop and railway station. Commercial property in the region may range as high as ₹9,722 per square foot.
Things to Consider Before Buying a Commercial Property in Tirunelveli
Below are certain factors that you should consider before opting for a commercial property in Tirunelveli:
- Location of the Property
Before opting for a property, you should do thorough research on its location and connectivity to major locations. Investing in commercial properties that are in close proximity to restaurants, retail stores, supermarkets, and business hubs will help you fetch high capital appreciation on your property.
- RERA Verification
Before buying the property, make sure that it adheres to RERA norms so that you do not face any legal complications later. The Real Estate Regulation Authority (RERA) was established after the enactment of Real Estate Regulatory Authority Act 2016 and ensures accountability and transparency in the real estate sector in India.
Stamp Duty in Tirunelveli, Tamil Nadu
Here is the rate of stamp duty that the Tamil Nadu state government imposes on the purchase of a property:
|Exchange||7% market value of greater value|
|General Power of Attorney(POA) to sell immovable property||₹100|
|General POA gave for consideration||4% on consideration|
Registration Charges in Tirunelveli, Tamil Nadu
State government imposes registration charges for property transactions. Here are the property registration rates applicable in Tirunelveli:
|Sale Agreement||1% of advance money (if possession given then 1% on total amount considered)|
|Exchange||4% of the market value of greater value|
|General Power of Attorney(POA) to sell immovable property||₹10,000|
|General POA given for consideration||₹10,000 or 1% on consideration, whichever is higher|
Tirunelveli Commercial Real Estate Sector: What’s the Forecast?
The Tamil Nadu government will unveil a new Start-up and Innovation policy that will encourage more entrepreneurs. This will raise the demand for more office spaces in the commercial real estate market of Tirunelveli. As per a recent report, new real estate projects have already increased by 17% in the state of Tamil Nadu.
There has been a two-fold growth in construction activities in relation to industries and warehouses. The entire state is witnessing real estate property development. It is quite evident that small cities like Tirunelveli will experience this leap of growth in the sector.
Commercial Real Estate vs Other Asset Classes
Here is the comparison between commercial real estate and other asset classes versus their returns:
Commercial Real Estate vs Mutual Funds & Stocks
Stocks and mutual funds offer much higher inflation-beating returns than real estate. However, mutual funds and stock investments are much riskier when compared to real estate because their returns depend on market fluctuations.
Commercial Real Estate vs Bonds
Real estate has lower stability than bonds but offers much higher returns. However, bonds have higher credit risk than real estate.
If you wish to invest in less-risky assets, like bonds and earn a stable income, register on our platform today and start investing in debt securities without incurring any extra charges.
Commercial Real Estate vs Residential Real Estate
Residential real estate offers lower returns in comparison to commercial real estate. However, residential real estate attracts more tax benefits than commercial real estate if the property is acquired on a home loan.
Commercial Real Estate vs Gold
Gold is a risky investment option as there are chances of theft. However, real estate offers a chance to earn passive income every month, which is not possible in the case of gold investments.
Here is a tabular representation comparing all asset classes on the basis of returns, volatility, risk, liquidity, and ticket size:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Commercial Real Estate in Tirunelveli
You can follow these steps to invest in commercial real estate in Tirunelveli:
Step 1: Finalise a budget and the type of commercial property that you wish to invest in.
Step 2: Pick up a few locations or properties that suit your requirements.
Step 3: Consider visiting all the locations in person to check their infrastructure, connectivity, etc. Make sure to check the authenticity of the property documents on the RERA Tamil Nadu portal.
Step 4: After finalizing the property, hire a lawyer to prepare all the legal documents like the sale deed, tax receipts, etc.
Step 5: After paying for the property, make sure to pay the stamp duty and registration charges.
Although investing in commercial real estate in Tirunelveli might offer you greater returns than investing in residential property, they also have their share of risk. Therefore, make sure to opt for a property that adheres to the RERA norms of Tamil Nadu.
Frequently Asked Questions
What types of commercial real estate are available in the market?
Different types of commercial real estate available in the market are office spaces, retail stores, industrial areas, hotels, and hospitality venues
What are the types of residential properties?
The types of residential property available in the market are apartments, villas, bungalows, duplexes, penthouses, and condos (condominium).
What are some of the residential localities in Tirunelveli?
Some residential localities in Tirunelveli are KTC Nagar, Perumal Puram, Ambasamudram, Rahmath Nagar, etc.
What are property registration charges?
The basic purpose of paying registration charges for a property is to transfer the ownership of the property to your name. If you fail to do so, the previous owner will still be considered the rightful and legal owner.