Guide for Tirupati Commercial Real Estate Investment 

Tirupati is a famous region in the state of Andhra Pradesh and is notable as a tourist place. The region is mainly famous for its historic Hindu shrine, the great Tirumala Venkateswara Temple. Apart from this, there are several other famous temples in this region as well. As per the census of 2011, Tirupati was in the 9th position of the most populated cities in Andhra Pradesh.

The climate of this region is quite moderate which is why this place has grown into a famous tourist hub. The region is also rich in authentic Hindu culture, festivals, and art. Due to its popularity, the state government has been taking several measures to ensure maximum facilities in this city. The hotel and tourism department is one of the most affluent industries here. Besides, IT industries are also quite flourishing here.

Taking into account all these, the place can be considered a great option for commercial real estate investment. Keep scrolling to know more.

Top Reasons to Invest in Tirupati Commercial Real Estate

Here are a few reasons you should consider while investing in commercial real estate in Tirupati:

  • IT Development

Tirupati is a popular IT hub and the state government has been taking beneficial steps to ensure maximum growth of this sector. There is an IT SEZ established by the state government near Tirupati airport. In addition, a space of 10,000 square feet has already been allotted for sponsored start-up companies. Apart from these, manufacturing units are also quite affluent in this region. Thus, the revolutionary IT sector can be a reason for investing in commercial real estate in Tirupati.

  • Smart City

Tirupati is on the list of smart cities in India. Thus, to ensure the fulfillment of every criterion, the TUDA or Tirupati Urban Development Authority has chalked out a great plan worth ₹ 1610 crores. There will be the making of railway stations, renovation of several places, etc. Further, there will be a continuous power supply, proper sewage and sanitation system, underground cables, and many more. So, you will surely get a huge profit by investing in the commercial real estate sector of Tirupati.

  • Tourism

Tourism is another important aspect of investing in the commercial real estate sector in Tirupati. The region is highly popular as a Hindu pilgrimage and there are also several nature spots to visit. Tourists can get a great deal of attraction in this region and to ensure their maximum comfort the local and state government have taken several steps. They have made the connectivity very smooth and the hotel industry is also very well-established here. Thus, the place can be a great option for commercial real estate investment.

Commercial Real Estate Investment Opportunities in Tirupati

Check out a few places where you can invest in Tirupati:

  • Mangalam

Mangalam is a famous location in Tirupati full of opportunities so it is a great option for commercial real estate investment. There are various hotels in Mangalam as well which is also a great reason for the popularity of this region. Apart from this, education is quite accessible in this region and there are several famous educational institutions such as Kendriya Vidyalaya, Sri Vidyanikethan English Medium High School, Viswam talent School, etc. So, the demand for hostels is also quite high here.

  • Yerpedu

Yerpedu is a place in Tirupati quite advance in different types of urban development. The region is a prime location for industrial and commercial boom due to its proximity to Tirupati Airport. In addition, there are several well-established corporate offices in this area and surrounding which is also a beneficial point for commercial real estate development in Yerpedu.

Things to Consider before Purchasing a Commercial Property in Tirupati

Here are a few things you need to consider before you go to buy a commercial real estate property:

  • Location Assessment

Location assessment is a must before you proceed to buy a commercial real estate property. To get the maximum profit you need to choose a location that is near an industrial area or IT hub. Further, you can also choose a populated location so that your property gets maximum exposure to the main regions of a city.

  • Connectivity

Connectivity is also a major aspect you need to assess before you buy a commercial real estate property. The region should be well-connected via roadways and the local transportation should also be very fluent. It will enhance the value of your property and also be beneficial to get tenants easily.

  • Lease Structure

You should be very careful with the lease structure, a legal document that denotes the relationship between owner and tenants. To get a clear lease structure, you should consult a real estate expert and take proper advice to proceed further.

  • RERA Verification

Before buying a property, you should check the RERA verification positively. It is important because it can be helpful for you to know the details of your builder and other related things. To check the RERA of Tirupati, you need to go to the Andhra Pradesh RERA portal.

Stamp Duty in Tirupati

The stamp duty charges in Tirupati are as follows:

CategoriesStamp Duty
Sale Deed5%
Gift (from a family member)2%

Registration Charges in Tirupati

The registration charges in Tirupati are as follows:

CategoriesStamp Duty
Sale Deed1%
Gift (from a family member)0.50%
Release0.5% (applied to a minimum- ₹ 1000 and maximum ₹ 10,000)
Partition₹ 1000

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

Being on the smart city mission, Tirupati Urban Development Authority has been taking several steps to make the region more affluent in every aspect. Some of their upcoming and ongoing projects are:

  • Smart park development
  • Beautification and refurbishment of Tirupati International Airport
  • Giving special attention to the metal scrap modern art
  • Forest plantation in Miyawaki
  • By-pass road making in Tirupati

Apart from these, TUDA also has some proposed road network-making projects, parks and gardens settlements, and horticulture development. There are 13 ongoing horticulture development, some of them are sports park development at Thummalagunta,  a family park development in Chandragirietc.

Thus, all these development can truly help to raise the demand for commercial spaces here and investors will get a remarkable profit undoubtedly.

Commercial Real Estate vs Other Asset Classes

Here is a comprehensive comparison between commercial real estate and other asset classes:

  • Commercial Real Estate vs Residential Real Estate

Commercial real estate can give you a better ROI as it is quite prospective. You can get long-term tenants in commercial real estate easily. Further, residential real estate can also give you a stable return with tax benefits if bought with a loan.

  • Commercial Real Estate vs Stocks and Mutual Funds

Mutual funds and stocks are volatile in the case of returns. Though you can get a huge profit from stocks and mutual funds, you may also face unexpected losses with the sudden fall of the graph. On the other hand, commercial real estate has no such issues and can give you stable returns without any effect of share market volatility.

  • Commercial Real Estate vs Bonds

Commercial real estate and bonds both can be safe options for investors. Generally, bonds have low risk and can give you stable returns. Commercial real estate is also notable for fixed passive income and steady growth in terms of profit.

  • Commercial Real Estate vs Gold

Gold is also a popular mode of investment as its price never declines. However, a huge growth in the price of gold indicates a dropping in the value of paper money. Thus, you can choose commercial real estate that is unaffected by such issues and can give a great ROI.

Have a glance at the tabular representation of the asset class comparisons.

ParametersResidential Real EstateStocks & Mutual FundsGoldCommercial Real EstateBonds
LiquidityLow High High Low Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High LowLow Low 
Ticket SizeHigh Varies LowHighVaries

Steps to Invest in Commercial Real Estate in Tirupati

Here are a few steps you need to follow while buying a commercial property.

Step 1: Finalise a budget that you can afford after your regular expenditure

Step 2: Select a few locations that are near industrial and popular areas

Step 3: Visit the locations and check all available amenities of that particular location

Step 4: Finalize your property and check every paperwork, and lease structure properly

Step 5: Take help from a real estate guide and know how you can get tenants easily

Step 6: Make sure you are submitting proper documents and checking RERA for detailed information

Step 7: Make your payment and buy insurance for your property

Final Word

If you are planning to buy a commercial real estate property in Tirupati, you can consider this guide to know important details. Further, you can take help from a real estate agent to make the whole process smooth. However, checking RERA is a must, and you should also conduct thorough research on the chosen location to avoid further hassle.

Frequently Asked Questions:

What are some popular commercial areas in Tirupati?

Some popular commercial areas in Tirupati are Mangalam, Yerpudu, Ramanuja Circle, Bhavani Nagar, Kalikiri, etc. Commercial plots are available in these areas.

Why Tirupati is famous?

Tirupati is famous for several popular Hindu temples. Besides, this city also has a great connection with the ancient history of India. In addition, the industrial sector is also quite booming in this region.

What are some nearby airports to Tirupati?

Some famous nearby airports to Tirupati are Tirupati Airport, Rajiv Gandhi International Airport, Vijayawada Airport, and Puttaprathe Airport. The city has a proper roadway connection with these airports.

What are some of the most profitable commercial real estate?

Office buildings, storage, RV parks, student housing, etc., are the most profitable commercial real estate as they can give a huge profit as they can gain the maximum number of tenants.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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