Guide for Farrukhabad Commercial Real Estate Investment

Located in the most populated state of India – Uttar Pradesh and on the banks of the river Ganges, Farrukhabad, has slowly carved a niche for itself as an emerging commercial real estate investment destination. 

Farrukhabad is located at a distance of 170 km from the city of ‘Nawabs’ Lucknow and 338 km from the national capital Delhi which further adds to the investment spree. Farrukhabad has been a city of immense significance historically and now with the advent of industrialisation and economic globalisation, this city has stood out due to its textile industries – especially zardozi embroidery and zari weaving. 

To know the lucrative investment opportunities here, go through the following sections!

Reasons to Invest in Commercial Real Estate in Farrukhabad

Mentioned below are the topmost reasons for investing in commercial real estate in Farrukhabad: 

• Industrial Development

Hailed and celebrated as the city of zari/zardozi hand embroidery, Farrukhabad is being seen by the Government as an important focal point for the diversification of UP’s textile industry. 

The establishment of Textile Park under the collaboration of the Textile Ministry of India and the State Government has attracted the interest of around 250 textile entrepreneurs.  

This, in turn, will lead to an exponential rise in local employment and at the same time, will provide an impetus to the secondary sector of the state as well as the national economy.

• Robust Railway Connectivity

An emerging industrial hub necessitates some basic infrastructural needs such as the presence of seamless rail, road and air connectivity; Farrukhabad truly stands out in this aspect. The well-maintained road and railway network in Farrukhabad aids the growth of commercial real estate sectors.

Railways are considered the lifeline of the Indian economy and the city is endowed with its own railway station and that too a ‘junction’. Thus, the presence of Farrukhabad Junction railway station is a noteworthy aspect that might make emerging industrialists drool over the prospect of setting up industries here. 

Not only this, but the city has within its vicinity several other notable railway stations such as Fatehgarh railway station, Kaimganj railway station, and Kamalganj railway station.  

• Strong Export Prospects

No matter how developed or filled with prospects a particular place is, it is only when one analyses how strong the exports related to that place are, that one gains concrete knowledge and confidence regarding any investment. Farrukhabad, in this respect, stands out as a beacon of prosperity owing to its exports. Farrukhabad’s zari/zardozi embroidery has found a favourable market not only in the rest of the country but also across the seas in the Middle East – Dubai, Australia, Europe especially the U.K., Canada and the U.S.A. 

• Tourism Sector

Farrukhabad has not only stood out on the map of India for its zari or zardozi embroidery industry but also for its tourism, which makes the city all the more exciting for investors willing to splurge and make a mark in the hospitality sector. Farrukhabad, as a district is endowed with several religious shrines, with some of them having a deep religious significance in terms of both Hinduism and Buddhism.

Commercial Real Estate Investment Opportunities in Farrukhabad

Here are some of the prominent destinations in Farrukhabad where you can materialise your commercial real estate investments: 

1. Khimsepur

One of the most notable sites for commercial real estate investments in Farrukhabad is Khimsepur. It is an industrial region that is located at a distance of 261 km from New Delhi.  The place is also close to railheads and has the necessary components that can make commercial real investment successful.

2. Kaimganj

Kaimganj is another region that is favourable to commercial real estate investment in Farrukhabad. The region is famous for housing the tobacco industry and sunflower cultivation. Owing to the massive production of potatoes, this place also has 61 cold storages. Even the place produces betel nuts that are further processed into sweet supari. 

3. Manhari

Another place where you can go for commercial real estate investment is Manhari. The place houses multiple resources to boost the growth of commercial property here. Further, Manhari is close to civic amenities like hospitals, railway stations, banks etc.

Things to Consider Before Investing in a Commercial Property in Farrukhabad

To make your commercial real investment in Farrukhabad successful, take into account the following parameters.

• RERA Authentication

The RERA Act of 2016 was passed to bring transparency and accountability to the real estate sector. Under RERA rules, all details (like land status, completion schedule, promoter details etc.) and documents related to property must be disclosed on the respective state’s RERA official website. 

Hence, before you invest in a commercial property, ensure it is registered with UP RERA, as it will help you reap the above-mentioned benefits.

• Location of Property

Location of a property determines the profitability of real estate investment. Even the rent that you will generate depends on the site. Hence, it is important to consider the location of the site before making any investment. You should consider the site’s proximity to an organised neighbourhood, good connectivity, and easy accessibility of basic and civic amenities of the site.  Also, analyse how the locality is going to prosper in the coming days. 

• Credibility of Builder

You must cross-check and ascertain the credibility of the builder. Investments in real estate sectors can prove counterproductive if you are not analysing a builder’s profile.  You have to dig into the builder’s history either by surfing online or visiting the developer’s website. You can go through his previous projects and experiences and reviews of earlier clients. Also, do not settle for a property by looking at the exterior, you must assess construction quality of the property.

Stamp Duty in Farrukhabad, Uttar Pradesh

To transfer property ownership, you must pay stamp duty to the state government. Refer to the table to know about the stamp duty rate that is levied in Uttar Pradesh during property transactions.

Registration Charge in Farrukhabad, Uttar Pradesh

Apart from stamp duty, you also have to bear the registration charges mentioned below.

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

Farrukhabad’s immense potential as an industrial hub can hardly be undermined and this has led the Uttar Pradesh state government to prioritise commercial setups in Farrukhabad and the decision to set up an industrial park here has been welcomed by a gamut of private investors. The state of UP has also seen a rise in real estate by 25%.

Furthermore, Farrukhabad has also plotted its name in the annals of infrastructural development by being a part of the ambitious Ganga Expressway whose foundation stone has been laid by the honourable Prime Minister of India Narendra Modi and is expected to reach its completion by the year 2024. This expressway will connect the eastern and western expanse of the state and the presence of Farrukhabad on this route has already sparked interest by industrialists both nationally and internationally.

What’s even more exciting is that the Government of Uttar Pradesh has already identified several sectors which have investment potential – be it from industrialists and entrepreneurs within the country, thus amplifying the ‘Make in India’ motto or from investors outside. Some of the identified sectors particularly include agricultural implements, jaggery and khandsari products, steel fabrication, etc.

Also, the abundance and popularity of betel nuts (supari) and sunflower cultivation leave the gates open for investors to particularly focus on the development and popularisation of industries using these as the primary raw materials.

With an influx of employment opportunities and a growth in industries, the opportunities in the commercial real estate sector will be sure to improve in the near future.

Commercial Real Estate Vs Other Asset Classes

Here are the particularities of the different asset classes that you must know before investing in commercial real estate investments: 

• Commercial Real Estate vs Residential Real Estate

Commercial real estate investment not only helps you earn higher returns but also bestows you with reliable tenants. It is easier to handle tenants like reputed corporations, banks or organisations. Residential real estate investment, on the other hand, comes with lower rental incomes and comparatively lower returns than its commercial counterpart.

• Commercial Real Estate vs Stocks and Mutual Fund

The returns that you get from mutual funds or stocks are higher; however, this investment choice exposes your funds to a fluctuating equity market. Your investment has to face volatility and there is also the high risk of losing your money. On the other hand, in commercial real estate, you earn modest returns without having to undergo any major risks. The returns don’t depend on market fluctuation. 

• Commercial Real Estate vs Gold

Gold can be held for both short term and long term and can also be liquidated at your convenience. However, the commodity is highly volatile than real estate as the returns depend on various global macroeconomic factors. However, with commercial real estate investments, you can not only earn decent returns but also have a regular monthly income. In addition, commercial real estate is subject to lower volatility. 

• Commercial Real Estate vs Bonds

Bonds are popular investment instruments that will help you get a fixed rate of interest. The predictable earning via bonds helps you to foresee return on investment. With commercial real estate investment, you get higher returns but the credit risk is comparatively higher than bonds.  

If you want to invest in low-risk investment options and earn 9-11% stable returns, register on our website today. Invest in a wide range of bonds without incurring any additional charges. 

Go through the table below to assess the different assets in terms of their risks, volatility, risks, liquidity, ticket size and returns.

Steps to Invest in Commercial Real Estate in Farrukhabad

The steps below will guide you on how to go about commercial real estate investments in Farrukhabad. 

Step 1: On the basis of your budget, conduct property research. 

Step 2: Confirm some of the property locations looking at their infrastructural development 

Step 3: You can seek assistance from a real estate agent during a property search as they will be able to give you deep insight regarding the locality, market standards etc. 

Step 4: Finalise a property after checking whether it is RERA registered. Also ensure the official documents like the sale deed, encumbrance certificate, mother’s deed, building approval plan etc., of the property are in order.

Step 5: Complete the property transaction by initiating the payment process. Make sure to pay the required stamp duty and registration charges. If you have opted for the assistance of a real estate agent, make sure to clear the service fees.

Lastly, opt for a comprehensive insurance plan to cover your newly bought property from unforeseen circumstances.

Final Word

Farrukhabad is notable for its excellent zardozi embroidery and zari weaving industries; the craft was brought along by the Afghans in the 12th century. Textile printing industry has been a primary source of income here. The strong handicraft sector naturally attracts commercial investments. Hence, investing in commercial real estate in Farrukhabad will prove a profitable venture. However, to make the investments rewarding, go through the above-mentioned sections and make an informed decision.

Frequently Asked Questions