Guide for Purnia Commercial Real Estate Investment

Purnia is close to being the second capital of Bihar, with the Bihar government planning to move its administrative headquarters to Purnia. 

Located in the northeastern parts of Bihar, it covers an area of 3,229 sq. km. It is one of the 38 districts in Bihar and one of the country’s major jute-producing areas. The city has a population of 32,64,619.

Apart from that, the city is also a major industrial centre of Bihar. Some major industries are cotton textiles, sugar refining, printing and handicrafts.

Due to its commercial importance, it is one of the best places for commercial real estate investment.

Top Reasons to Invest in Purnia Real Estate

These are some of the reasons why Purnia is an ideal destination for commercial real estate investments:

• Transport and Connectivity

Purnia has excellent transportation facilities. Transport facilities are the lifeline of businesses. In this district, buses link the city’s different areas and connect the city to other nearby districts.

Purnia has a railway station, which links it to other major cities in Bihar and India. The nearest airport to Purnia is the Bagdogra airport.

• Industry and Commerce

Purnia is one of the major industrial districts of the country. This city is strategically located, with Nepal in the North and West Bengal in the east, which is conducive to business growth. 

It boasts of several industries, which include agro-based industries, garments manufacturing, leather, printing and handicrafts, engineering units manufacturing and chemical-based industries. Furthermore, due to its emergence as a regional healthcare hub, it also has a lot of scope for healthcare real estate investment. 

Commercial Real Estate Investment Opportunities in Purnia

Here are some of the important commercial locations in Purnia:

• Bhatta Bazar

Bhatta Bazar is one of the commercially important localities of Purnia. It is well-connected to other parts of the city.

Bhatta Bazar is close to all the necessary infrastructure and amenities. There are 56 hospitals nearby, and there are also two shopping malls and three restaurants. Thus, it is already a prominent business hub.

• Gulabbagh

Gulabbagh is another important commercial area in Purnia. It has excellent connectivity to the rest of the city and nearby cities. 

There are two medical stores and 1 supermarket in this area. The Bihar Chief Minister Nitish Kumar had ordered the renovation of the Gulabbagh mandi, indicating this area’s commercial importance in the state.

Also Read: Guide for Bulandshahr Commercial Real Estate Investment

Things to Consider Before Investing in a Commercial Property in Purnia

Here are some things that you should keep in mind before investing in Purnia’s commercial spaces:

• Connectivity and Infrastructure

The value of a commercial property depends on its location. If it is in a location which is well connected to the rest of the city, the property will fetch you a higher resale value in the future.

Similarly, if a commercial property is located near the requisite infrastructure, the rental prospects of the property would be higher.

• RERA Authentication

Every state has a Real Estate Regulatory Authority (RERA) under the provisions of the Real Estate Regulatory Authority Act, 2016. The main purpose of this statutory body is to maintain transparency and accountability in the real estate business.

Before purchasing a property in Purnia, visit the Bihar RERA website to check the authenticity of the commercial project and its builder.

Stamp Duty in Purnia, Bihar

Before investing in a commercial property in Purnia, check the stamp duty levied on commercial properties in the district in the table below:

Registration Charges in Purnia, Bihar

Given in the table below are the registration charges for commercial property in Purnia:

Purnia Real Estate Sector: What’s the Forecast?

Purnia is fast developing into a major destination for commercial investment. Recently, Bihar Chief Minister Nitish Kumar inaugurated the first Ethanol factory in Purnia. Furthermore, the city’s healthcare industry is booming, annually contributing ₹800 crores to the district’s economy.

Additionally, the infrastructure of the district is undergoing continuous development. Nitin Gadkari, the Union Minister for Road Transport and Highways, has confirmed the construction of Gorakhpur-Siliguri expressway amongst a number of other projects, which will further link Purnia to prominent trading and commercial centres in the country like Muzzafarpur, Madhubani and Siliguri.

With increasing investment in the commercial sector, property prices are bound to rise in Purnia. Thus, if you wish to invest in commercial real estate in Purnia, you might get a profitable resale value in the future.

Commercial Real Estate vs Other Asset Classes

Before investing in commercial property, you must know about these pros and cons of investing in commercial real estate in comparison to other asset classes:

• Commercial real estate vs Residential real estate

Commercial real estate can get you higher profits than residential real estate. Furthermore, it has a higher rental prospect as compared to residential properties.

• Commercial real estate vs Gold

Commercial real estate can get you higher profits if you are interested in mid to long-term investments. Since gold has higher liquidity, it is better for short-term investment plans than commercial real estate.

• Commercial real estate vs Stocks and Mutual funds

Stocks have the potential to fetch a much higher profit than commercial real estate. However, stocks are a riskier investment because it is highly volatile and fluctuate according to market conditions. Thus, investing in commercial properties is considered a safer option.

• Commercial real estate vs Bonds

Both commercial real estate and bonds can get you a stable profit. However, the credit risk in bonds is lower than in commercial real estate.

Are you interested in investing in bonds? Register on our platform today to invest in top-rated bonds in the market at no additional costs or hidden charges.

Given below is a table that compares the different asset classes based on returns, liquidity, risk, volatility, and ticket size:

Steps to Invest in Commercial Real Estate in Purnia

Step 1: Fix a budget and start searching for potential sites.

Step 2: Select some of the sites based on their developmental prospects and potential for returns.

Step 3: Choose some of these sites and visit them. Check out the availability of local infrastructure and amenities.

Step 4: Buy a suitable property by preparing all necessary documents like title deed, foundation certificate, property assessment extract, etc.

Step 5: Complete the payment process. Pay the required stamp duties and registration charges to register the property in your name.

Read More: Guide for Hospet Commercial Real Estate investment

Final Word

Purnia is fast developing into a significant commercial location in Bihar. This also means that investing in Purnia’s booming commercial real estate is bound to fetch you high returns. It also will have a high rental prospect. 

However, before investing in a commercial property in Purnia, consult a real estate agent to make an informed choice.

Frequently Asked Questions