Guide for Burhanpur Commercial Real Estate Investment

Burhanpur is a city in the Indian state of Madhya Pradesh, also known as Brampore. It is known for its textile industry and is the largest hub for power loom industries in the state. It has several cotton and oil mills in the city. All these industries generate huge employment opportunities, making it famous for commercial real estate among investors.

This city is also well-connected to other important cities through roads and railways. It has two airports, one domestic and another customs, providing easy accessibility via air. 

Let us see the Guide for Burhanpur Commercial Real Estate Investment 

Top Reasons to Invest in Commercial Real Estate Properties in Burhanpur

The top 2 reasons to invest in the commercial real estate properties of Burhanpur are as follows:

1. Developing Connectivity

Burhanpur has a better connectivity and infrastructure system, which is improving every year. Moreover, this location is home to a larger community of people who can access their office area easily through roads and railways.

2. Strategic Location Placement

This city is situated near many important highways, like NH 347C, connecting many important residential areas surrounding it. It is also one of those places which have two airports, a domestic and a customs.

Investment Opportunities in Commercial Real Estate in Burhanpur

The locations having the best opportunities to invest in commercial real estate properties in Burhanpur are as follows:

1. Lalbagh

One of the most famous commercial spaces among real estate investors, Lalbagh in Burhanpur has remarkable connectivity through roads and railways. The property price in this area is also very reasonable to afford.

2. Emagird

This is an urbanised village in Burhanpur which has been developing in terms of infrastructure for a few years. It has good roads providing excellent connectivity, especially through highways like NH 347C.

Also Read: Guide for Deoghar Commercial Real Estate Investment

Things to Consider Before Buying a Commercial Real Estate Property in Burhanpur

The main things to consider before buying a commercial real estate property in Burhanpur are as follows:

1. Proper Market Research 

Investing in commercial real estate involves a lot of fraudulent activities and hence, needs a substantial amount of market research. Moreover, proper market knowledge will save you and your property from huge market risks.

1. RERA authenticity checker

RERA is a statutory body notified by the RERA Act 2016 with the main motive of promoting transactions between real estate agents and buyers. Here, one can check the authenticity of the builder and their property by visiting the RERA website of Madhya Pradesh.

Stamp Duty Rates in Burhanpur, Madhya Pradesh

The stamp duty rates for commercial property sales in Burhanpur are in the following table:

Registration Charges in Burhanpur, Madhya Pradesh

The list of registration charges for commercial real estate sales in Burhanpur is in the table below:

It is essential to consider the stamp duty rates and registration charges as they will be a part of your investment amount. These charges should also be noted while planning the budget.

Commercial Real Estate Sector Forecast in Burhanpur

Due to a large number of textile industries, this city is known for having a National Textile Corporation (NTC) project. Besides, there has been a 35% increase in the number of investors in real estate in Madhya Pradesh, having a great impact on this city. 

However, the entire state has also witnessed a 15-20% rise in construction after the Covid 19 virus and the Russia-Ukraine war. Here, the cost of iron rods has gone to 83 from 52 and cement price has witnessed a 30% hike. All these have affected created a negative impact by increasing the cost of property here.

Commercial Real Estate vs Other Asset Classes

The difference between commercial real estate and other asset classes is conducted on the basis of the following:

• Commercial Real Estate vs Stocks and Mutual Funds

Investment in the commercial real estate industry is less volatile than investing in stocks and mutual funds. However, stocks and mutual funds witness higher fluctuations than commercial property, making it tough for investors to estimate the budget.

• Commercial Real Estate vs Gold

Real estate investment offers low risks, tax benefits and passive income, whereas gold is just a commodity which has higher volatility and risks of being stolen. Moreover, real estate property brings mental satisfaction as it can secure your future, but gold, being a commodity, is traded on an exchange basis. 

• Commercial Real Estate vs Residential Real estate

Residential property needs to be leased annually, but office spaces can be leased for longer tenures. Moreover, the vacancy risks for residential properties are higher in comparison to a commercial estate with the given frequent turnover of tenants.

• Commercial Real Estate vs Bonds

Commercial property investments are more illiquid than bonds due to higher transaction costs and a longer time to find a suitable buyer. However, bonds have a low credit risk than commercial real estate properties. 

A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:

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Steps to Invest in Commercial Real Estate in Burhanpur, Madhya Pradesh

The steps to invest in commercial real estate in Burhanpur, Madhya Pradesh, are as follows:

Step 1: Finalise your financial budget.

Step 2: Conduct proper market research.

Step 3: Shortlist some budget-friendly sites.

Step 4: Make a field visit to these sites and analyse them minutely.

Step 5: Finalise a commercial real estate property that is suitable.

Step 6: Prepare official documents and purchase the property.

Step 7: Complete registration charges and stamp duty formalities. 

Step 8: Cover your new property with an insurance plan.

Step 9: Pay service fees to real estate consultants and brokers if availed of their service.

Read More: Guide for Bulandshahr Commercial Real Estate Investment

Final Word

Considering the rapid infrastructural growth and development, the commercial real estate sector of Burhanpur is seeing positive changes in terms of connectivity. The employment rate in this city is also increasing due to the industrial growth in different sectors. Moreover, due to low property value, the demand for commercial real estate is increasing day by day.

Frequently Asked Questions