Guide for Amarnath Commercial Real Estate Investment

Amarnath is a shrine located in the Anantnag district of Jammu and Kashmir. The cave is located at a height of 3,888 m. It is 168 km from Anantnag city and 141 km from Srinagar. The shrine is open only in the summer for pilgrims and tourists. According to data in 2018, 2.85 lakh pilgrims travel to the Amarnath temple every year. This makes it an important tourist attraction, even if it’s for a short period during the summer. 

Let us understand how investing in commercial properties in close proximity to the Amarnath temple might be profitable for you. 

Top Reasons to Invest in Amarnath Real Estate

Here are some of the reasons why you should consider investing in commercial locations in Amarnath: 

• Tourist Attraction

Amarnath temple is the most important attraction of this city. It is visited by millions of tourists every year from across the world who take on the challenging mountainous trek known as ‘Amarnath Yatra’. Therefore, investing in commercial property in the locations nearby Amarnath might be highly profitable.

• Pilgrimage Site

Amarnath cave is a Mahamaya Shakti Peetha out of the 51 Shakti Peethas. This cave has a Shivaling which is formed naturally out of ice. It is open to pilgrims in summer as the shrine is an important symbol in Hindu mythology. 

It is one of the important pilgrimage sites in India for worshippers of Lord Shiva. Therefore, investing in retail and hospitality in its vicinity might be worth your money.

Commercial Real Estate Investment Opportunities in Amarnath

Here are some locations near the Amarnath Temple which might help you earn good returns on your commercial real estate investment:

• Pahalgam

Situated in the Anantnag district of Jammu and Kashmir, Pahalgam is a mesmerising hill station and popular tourist attraction. This locality is famous for adventure activities like hiking, trekking and fishing. People enjoy sledging on frozen glaziers as well. It is one of the important bases for Amarnath Yatra. Therefore, investing in hospitality and retail spaces in Pahalgam might be highly profitable. 

• Baltal 

It is one of the halt destinations and a base camp for the devotees visiting the Amarnath Temple. Baltal is also famous for its absolutely picturesque environment. This place is in close proximity to towns like Srinagar, Sonamarg and Pahalgam. Baltal has great opportunities when it comes to commercial real estate investment.

Also Read: Guide for Mirzapur Commercial Real Estate Investment

Things to Consider Before Buying a Commercial Property in Amarnath

Here are some points that you should keep in mind before buying a commercial property near the Amarnath temple:

• RERA Verification

The Real Estate Regulatory Authority (RERA) is a statutory body that promotes accountability and transparency in India’s real estate sector. It was established after enactment of Real Estate Regulatory Authority Act of 2016. 

Each state and UT have their own real estate regulatory body, which updates and records all information related to the properties within the state or UT. Therefore, before opting for a property in Amarnath, make sure to check the authenticity of the property and builder by visiting the official website of RERA Jammu and Kashmir.

• Construction Quality

As Amarnath is located in a mountainous region, you should give particular importance to construction quality of the property. You should check the strength of the walls and standard flooring used to ensure optimum safety of the tenants. 

Stamp Duty in Amarnath, Jammu & Kashmir

Stamp duty is a tax imposed by the state government or union territory on sale of property or property ownership. Here are the rates of stamp duty applicable in Jammu and Kashmir:

Registration Charges in Amarnath, Jammu & Kashmir

Payment of registration charges is mandatory if you want to legally own the property that you buy. Rate of registration charges applicable in Amarnath is as follows:

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

The Jammu and Kashmir government has opened the union territory for real estate investors all around the country by signing 39 MoUs worth ₹18,300 crore for development of commercial and residential projects. The Union government has also implemented realty law of RERA and has adopted Model Tenancy Act in the union territory.

The UT will further reduce stamp duty and registration charges of properties and set up a single window system for quicker approval of projects. Government will also provide lands under the new industrial policy for development of projects. Therefore, investments in commercial real estate that are in close proximity to Amarnath temple will become much easier and more profitable in the coming years.

Commercial Real Estate vs Other Asset Classes 

Here is the comparison between commercial real estate and other asset classes based on various factors: 

Commercial Real Estate vs Gold

Real estate requires much more money for investment which is not the case with gold. You can invest in gold for both long term and short term; however, in case of real estate, long-term investments generate higher capital appreciation. 

Commercial Real Estate vs Stocks & Mutual Funds

Real estate requires a much higher quantum of investment when compared to stocks and mutual funds. In terms of returns, stocks and mutual funds have the upper hand. However, stock-oriented investments are highly risky as the price fluctuates based on market sentiments. 

Commercial Real Estate vs Bonds 

Real estate is riskier and more unstable when compared to bonds. In contrast, bonds have low credit risk and are an excellent source of stable, passive income. They also have high liquidity, which is not the case with real estate investments. 

Planning to invest in bonds and generate stable returns? Register on our platform today to invest in the top-rated bonds available in the market. 

Commercial Real Estate vs Residential Real Estate

Commercial real estate offers better returns in comparison to residential real estate. However, tax benefits are comparatively higher in case of residential real estate investment if the house is taken on a home loan.

Here is a tabular representation of the comparison of different asset classes on the basis of returns, liquidity, risk, volatility and ticket size:

Steps to Invest in Commercial Real Estate in Amarnath

Here are the steps that you can follow to invest in commercial real estate in Amarnath:

Step 1: Fix your investment budget. 

Step 2: Create a list of suitable locations that have a high return on investment potential. 

Step 3: After shortlisting a few properties, visit each one of them to assess them in terms of infrastructure, connectivity, etc. 

Step 4: After finalising a property as per your requirements, prepare the necessary documents like sale deed, agreement, tax receipts, building plan, etc. 

Step 5: Complete the payment process. Make sure to complete the stamp duty and registration formalities. 

Step 6: Lastly, consider purchasing an insurance policy for your property to safeguard your finances. 

Read More: Guide for Yamunanagar Commercial Real Estate Investment

Final Word

Amarnath is a tourist destination and pilgrimage site which attracts many people every year. Therefore, investing in commercial real estate here might offer a great opportunity to earn high returns on investment. However, as it is a hilly region, it is necessary to confirm whether the property adheres to the norms of RERA. 

RERA approval will ensure that you do not face any legal complications in the future. Also, opting for an insurance policy will protect you from financial complications as these areas are highly prone to natural disasters.

Frequently Asked Questions