Guide for Bulandshahr Commercial Real Estate Investment

Bulandshahr city is the administrative headquarters of Bulandshahr district of Uttar Pradesh. It forms a part of the national capital region of Delhi. Being a part of the national capital region, there has been a rapid increase in commercial real estate activities, especially after the subsidence of the pandemic.

According to a report by a leading real estate consultancy and research firm CBRE, total office leasing space in the second quarter of 2022 saw a massive jump of 61% over and above the previous quarter. This massive jump was led by Bangalore and followed by Delhi NCR. 

Hence, Bulandshahr has also been witnessing massive investments in the commercial space sector as it is a part of the NCR region. In this article, we will discuss the various investment opportunities in this region’s commercial real estate sector. 

Top Reasons to Invest in Bulandshahr Real Estate           

Here are the various reasons to invest in commercial real estate property in Bulandshahr: 

• Commercial Hub 

The national capital region is one of the biggest commercial hubs in north India. Bulandshahr, because of its good connectivity with Delhi and other tier 1 cities, is also an attractive destination for several commercial real estate projects. 

• Return Potential 

The return potential of investing in commercial real estate in Bulandshahr is moderate. However, looking at the growth trajectory of the region, return potential will increase in a manifold manner. 

• Passive Income 

Passive earnings mean those incomes which do not involve any physical activity. Rental income from commercial properties is a type of passive income which can serve as an opportunity to earn relatively risk-free money. 

Commercial Real Estate Investment Opportunities in Bulandshahr

Here are some locations in Bulandshahr that you can consider for commercial real estate investment: 

• Yamunapuram 

It is one of the prime localities in this city and has the potential to become a commercial hub for a number of primary and secondary industries. It has a good road and rail network, adequate power supply and efficient law and order system, allowing individuals to invest in commercial spaces and book profits. 

• Khurja 

This area is one of the locations lying on the eastern dedicated freight corridor. Therefore, it will help in the seamless movement of raw materials and goods to various areas of eastern India. 

• Shikarpur 

It is another area in Bulandshahr which has a promising outlook towards the commercial real estate segment. This area has round-the-clock electricity, a good network of roads and large vacant land parcels. All these make it an ideal choice for commercial space investments. 

Also Read: Guide for Burhanpur Commercial Real Estate Investment

Things to Consider Before Buying Commercial Property in Bulandshahr

Here are the various factors that you should consider before investing in the commercial real estate sector: 

• Connectivity 

Connectivity of an area with other top-tier cities, manufacturing and service sector hubs are important factors that you should consider before putting money into a property. Better the connectivity of an area, the higher will be the demand and subsequently, it will fetch higher returns in the form of rental income or sale proceeds. 

• Infrastructure 

It includes better roads, last-mile rapid transit systems, airports, usage of modern technologies in governance and a conducive investment environment goes a long way in fetching higher returns in the real estate category. You should always consider these pointers before taking any decision. 

• Lease Structure 

Another important thing that you should carefully analyse is the lease structure of the property in which you are making an investment. A lease is a legal agreement that defines the relationship between a buyer and the owner of the plot. It is imperative that you take help from a legal consultant and understand the nitty gritty of these lease structures, like the timeline, authorised use of property, etc. 

• RERA Verification

The government of India has enacted a legislation named the real estate regulatory authority act 2016. As per this act, all builders and developers must register themselves on the respective RERA portal of their state. You can visit this portal and check the authenticity of every developer and project undertaken by them. 

Verification and cross checking with this portal will give you assurance regarding your investment. After going through this website, if you are having any doubts regarding a project or its developer, you can shelve that particular investment plan and seek other investment options. 

Stamp Duty in Bulandshahr, Uttar Pradesh  

Now, we will consider the stamp duty charges that you will have to incur while investing in a commercial real estate property. It is a crucial factor that you should consider while purchasing a property as it will add to the cost of purchasing a property: 

It is important to note that relaxations given on stamp duty charges to women are applicable only up to ₹ 10 lakhs of the total sale value. 

Registration Charges in Bulandshahr, Uttar Pradesh 

Now that you are aware of the stamp duty charges levied on the sale transaction, let’s move on to registration charges that you will need to pay to the Uttar Pradesh government for transferring property in your name. The registration charges are as follows: 

Bulandshahr Commercial Real Estate: What’s the Forecast?

The commercial real estate segment in Bulandshahr is quite promising as the government has undertaken a number of projects for further ease of doing business in this city. As per a report by Cushman and Wakefield, the office space leasing in NCR in the third quarter of 2022 saw an increase of 6% over the previous quarter, which in itself was record-breaking. 

The absorption rate is also at record levels at 1.3 million square feet. All these indicators mean that NCR and Bulandshahr, which is a part of it, will witness a boom in office space investment in the coming years. 

Commercial Real Estate vs Other Asset Classes 

Let’s compare commercial real estate and other asset classes: 

• Commercial Real Estate vs Stocks and Mutual Funds 

The rate of return in stocks and mutual funds is quite high compared to commercial real estate sector. However, if we consider the risk level of these investment classes, in that case, stocks and mutual funds carry a higher risk than commercial properties. 

• Commercial Real Estate vs Gold 

If we take into account the return potential of these investment alternatives, we will see that commercial real estate has a higher return potential than yellow metal. Moreover, the annualised rate of return on gold is lower than commercial properties, which can rise exponentially during a market boom.  

• Commercial Real Estate vs Residential Real Estate 

When we compare the return outlook of commercial and residential real estate, we will see that incomes generated from the former will always be on the higher side as compared to the latter. This is because commercial spaces have better rental prospects. 

• Commercial Real Estate vs Bonds 

Bonds are one of the safest investment options. The risk associated with these is lowest across all investment classes. On the other hand, investments in commercial office space are also in low-risk category, but it is slightly higher when compared with fixed-income instruments. Moreover, bonds are highly liquid when compared to commercial real estate investments because the latter requires a huge quantum of investment. 

If you wish to invest in bonds and earn stable returns of 9-11%, register on our platform today and start investing in top-rated bonds available in the market. 

You can get a more detailed idea regarding the comparison between commercial properties and other asset classes by looking at this table: 

Steps to Invest in Commercial Real Estate in Bulandshahr 

Here are the various steps that you should follow to buy a commercial property in Bulandshahr: 

Step 1: Recognise your budget and shortlist prospective areas according to that. 

Step 2: Carry out research about the prevailing market prices and future growth forecasts of that respective area. 

Step 3: Shortlist some locations that fit your budget and have a promising growth outlook.

Step 4: Contact a local real estate agent and carry out a field visit of the site. Take their assistance and understand the benefits and drawbacks of investing in these places. 

Step 5: Finalise a property that meets your requirements. 

Step 6: Go through all papers related to the property, like foundation certificates, title deeds, etc. and check their authenticity with a legal expert. 

Step 7: Pay off stamp duty and registration charges to complete the formal handover of the property. After that, you can also pay off various service charges and fees of legal consultants or real estate agents. 

Step 8: Take an insurance cover for your property and safeguard it from future exigencies. 

Read More: Guide for Purnia Commercial Real Estate Investment

Final Word

Bulandshahr is becoming a commercial hub of western Uttar Pradesh comprising NCR districts. This area has been witnessing some positive developments in the commercial real estate category. However, if you are looking to invest in a commercial space, you should consult a real estate agent before taking any investment decision. 

Frequently Asked Questions