Guide for Bokaro Commercial Real Estate Investment

Bokaro, also known as Steel City, is one of the largest industrial hubs in India. It is a planned city in Jharkhand close to Dhanbad, Jamshedpur, and Kolkata. Major industries processing coal, minerals, thermal power, and steel are present in this city.

The city is most well-known for the Bokaro Steel Plant, the largest steel plant in India, employing around 40,000 people. In addition, Oil and Natural Gas Corporation (ONGC), Jaypee Cements, Electrosteel Castings Limited and other prominent entities operate in the industrial belt of this city. These heavy industries encourage the growth of many supporting businesses.

This city is well connected via roadways and railways to the rest of India. Bokaro Steel City Railway Station is the nearest accessible railway station just 12 km from the city’s centre. The nearest commercial airport is 120 km away in Ranchi. The Airports Authority of India (AAI) has proposed the construction of a new commercial airport in Bokaro.   

Due to the heavy industrial presence in Bokaro, the demand for warehouses and other types of commercial properties has been growing rapidly. Hence it is profitable to invest in commercial real estate in this city. To learn about the best property investments in Bokaro, read the details below.

Top Reasons to Invest in Bokaro Real Estate

You can consider investing in commercial real estate in Bokaro due to the following reasons:

• India’s Steel City

Bokaro is also called the Bokaro Steel City due to the presence of the Bokaro Steel Plant. It is one of the largest steel industries in India. The steel plant operates under the Steel Authority of India (SAIL) with an annual production of more than 4 million tonnes which is estimated to reach 10 million tonnes in a few years. 

• Industrial Hub

Besides steel plants, Bokaro is also a hub for minerals, coal mines and thermal power plants. It has several projects active under the DVC Corporation with other plants in the rest of Jharkhand and West Bengal. Moreover, this city has industrial zones like the Bokaro Industrial Area and Balidih Industrial Area, which are great places for setting up businesses.

• Educational Hub

Bokaro is also a preferred choice for education among people. There are many public and private schools, including Bokaro Ispat Vidyalayas, St. Xavier’s and Delhi Public School. For higher education, there are multiple colleges, such as Bokaro Mahila College, Government Polytechnic, Bokaro Steel City College, Swami Sahajanand College, etc. 

Bokaro has a high average literacy rate of 84.87%. Its skilled workforce attracts many industries to set up establishments.

• Return on Investment

Due to the above reasons, investing in a commercial property in Bokaro will get you a good return on your investment. Demand for rental houses, warehouses, shop spaces, etc., will likely keep rising in the coming years due to the growth of industries in the city.

Commercial Real Estate Investment Opportunities in Bokaro

If you want to invest in a commercial property in Bokaro, check out the following places.

• Sector 4

Sector 4 is a planned locality in Bokaro located in the central part of the city. It is well-connected to all the prime locations in the city via public transport. Sector 4 has all modern amenities and access to essential facilities like healthcare. The property value in this locality ranges between ₹5 lakh to ₹90 lakh, depending on the type of property and location.

• Chas

It is a modern and posh locality in Bokaro. Residential properties in Chas have good potential for rental income as they are located conveniently around other developing areas. Chas has a demand for rental spaces, with an average earning of ₹6,000 per month. Property prices in this area are between ₹15 lakh to ₹90 lakh.

Also Read: Guide for Puducherry Commercial Real Estate Investment

Things to Consider before Buying a Commercial Property in Bokaro

Before you buy a commercial property in Bokaro, you should consider the factors given below to ensure a profitable investment.

• Connectivity

Connectivity is an essential factor for real estate investments. Properties with easy access to railway stations, bus routes, and airports are in higher demand properties located away from main roads.

• Builder

A property builder should be a reputed professional in the field with excellent records of completing projects. Reputed builders use standard construction materials and abide by rules. Hence, it is a safe investment for you if the builder is reputed.

• Location

The valuation of properties in a developing area is comparatively lower than in posh localities. Therefore, you can get more affordable prices and make large profits when the area becomes fully developed. 

Similarly, if you purchase residential properties in prime locations, tenants will be willing to offer higher rents. Moreover, you will have advantages like the best amenities, ease of transportation, etc.

• RERA

The Real Estate Regulatory Authority (RERA) is a regulatory body present in every Indian state and Union Territory under the provision of the Real Estate Regulatory Authority Act, 2016. All builders and properties should be registered under the RERA body of the respective state.

Hence verify your commercial property and details about your builder from the official website of RERA Jharkhand.

• Lease Structure

A lease contract for your commercial property is another essential factor to check for a good investment. Before investing, check all the details and conditions in the lease structure to ensure that they are fair and acceptable. It will help you avoid any confusion in the future.

Stamp Duty in Bokaro

Stamp duty charges are an additional cost for any real estate investment that increases your initial cost. The stamp duty rates for properties in Bokaro are given below:

Registration Charges in Bokaro

Registration charges applicable on commercial properties in Bokaro are given below.

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

Bokaro is an important industrial zone of Jharkhand. Its many large, medium, and small-scale industries bring in many skilled workers to the city. Bokaro attracts many businesses, and thus, there is high demand for commercial spaces here.

The top players in large-scale industries have plans to expand their operations in the city of Bokaro, which will develop the infrastructure of the city and raise the demand for commercial real estate.

Vedanta Electrosteel Casting Limited has an operational plant with over ₹80 billion investment since 2010. In addition, Technology Parks of India plans to set up an IT Park in Bokaro with projects already underway.

The massive industrial development in this city will boost the commercial real estate market even further in the near future and multiply returns from properties. 

Commercial Real Estate vs Other Asset Classes

Here is a comparison between commercial real estate and other asset classes based on a number of factors:

Commercial Real Estate vs Stocks & Mutual Funds

Stocks and most mutual funds are equity investments that offer a high rate of return but carry high risks. These prices are very volatile and depend on market trends. Commercial real estate, on the other hand, offers comparatively moderate returns at lower risks.

Commercial Real Estate vs Residential Real estate

Commercial real estate offers higher returns than residential real estate at comparatively similar risks. However, commercial properties are generally more expensive, and it can be harder to find buyers and tenants.

Commercial Real Estate vs Bonds

Bonds are fixed return rate instruments that offer low to moderate returns depending on their credit rating. They are a good option to park your capital for a comparatively shorter time period than real estate. However, commercial real estate offers much higher returns over the long term.

If you want to invest in bonds offering 9-11 % returns, check out our list of best bonds on our homepage.

Commercial Real Estate vs Gold

Commercial real estate investments offer higher returns than gold and also offer additional income. The rate of appreciation for gold is slow compared to real estate assets. However, gold is a more liquid investment.

A comparison of the above assets based on returns, liquidity, risk, volatility, and ticket price is given below.

Steps to Invest in Commercial Real Estate in Bokaro

If you plan to buy a commercial property in Bokaro, follow the steps given below:

Step 1: Pre-decide your budget for commercial property.

Step 2: Shortlist a few properties after doing a market survey.

Step 3: Visit the selected properties and check their amenities in person.

Step 4: Finalise a property that fits your requirements.

Step 5: Check the property details on the RERA Website.

Step 6: Check all the property documents offered by the seller.

Step 7: Complete payments and the registration process.

Step 8: Get insurance coverage for your property.

Read More: Guide for Karnal Commercial Real Estate Investment

Final Word

Bokaro is famous for its massive steel plant and coal mines, among other things. It is one of the best places for commercial real estate investments in India as it has a dynamic demand for commercial properties. Its IT and education sector is slowly growing and will witness better development in the future. 

If you want to invest in commercial real estate in Bokaro, make sure to do thorough market research and take the help of a real estate professional if possible.

Frequently Asked Questions