Commercial Real Estate Investment in Bhilwara

Bhilwara is a town situated in the Mewar region of Rajasthan. It is also referred to as the ‘Textile City’ and ‘Manchester’ of Rajasthan as it is renowned worldwide for the production of synthetic fabric used to make trousers. In terms of connectivity as well Bhilwara is surrounded by four national highways. This city also has a railway station. The government of Rajasthan is taking steps to develop 10 industrial areas in the city making it a hotbed for investing in commercial real estate in Bhilwara.

Let us find out some more reasons as to how investing in commercial real estate in Bhilwara might be worth your money.

Top Reasons to Invest in Bhilwara Real Estate

Mentioned below are some of the reasons why you would want to invest in commercial real estate in Bhilwara:

• Infrastructure

In terms of road connectivity, a total of 4 highways pass through Bhilwara. These are National Highway 76 a part of East West Corridor, National Highway 79 which is a part of the Golden Quadrilateral, National Highway 148D and National Highway 758. 

Bhilwara has its own railway station that connects it to major destinations in the country. The nearest airports are Kishangarh airport in Ajmer and Dabok in Udaipur. Therefore being a well-connected location makes Bhilwara a hotspot for commercial real estate investors.

• Industry

Bhilwara’s textile industry is world-renowned. There are huge numbers of manufacturing units of synthetic fibre across the entire city. Other than cotton, food-based products, jute, woollen and silk, leather, paper etc., industrial sectors are also present. There are a large number of industrial areas also present here in Bigod, Raila, Jahajpur etc.

Commercial Real Estate Investment Opportunities in Bhilwara

Here is a list of some localities that might be apt for investing in commercial real estate in Bhilwara:

• Gandhi Nagar

It is a good area and is well connected by bus stops and railway stations. Many textile offices are located in the vicinity. All the basic amenities are available within walking distance. The rate of commercial property in the locality ranges around ₹3,724 per square foot.

• Azad Nagar

Azar Nagar has all the facilities that are required to attract big retail and hospitality brands. There are a large number of hotels, restaurants, cinema halls, and markets already present here. This shows that there are huge requirements in this locality. The rate of commercial property in this locality ranges around ₹40,000. 

Things to Consider Before Buying a Commercial Property in Bhilwara

Let us take a look at some of the points that you want to keep in mind if you are planning to purchase a commercial property in Bhilwara:

• Developer’s Reputation

Though the government is taking steps to remove any type of corruption from the real estate sector in India. However, you need to do thorough research regarding the builder’s profile and history so that you do not end up falling into any traps later. 

For this, you can go through the website of the developer to get insights about the developer and their reputation. You can also check out the under-construction projects and reviews of previous customers of the builder to get an idea regarding the credibility and reliability of a builder.

• RERA Compliance

Before purchasing a property, you should be certain that the property you are buying and the builder who has constructed it is authentic or not. To check it you can visit the official website of RERA Rajasthan. The Real Estate Regulatory Authority is a body that looks into accountability and transparency of the real estate sector in India. This body came into force after the formation of the Real Estate Regulatory Authority Act of 2016.

Stamp Duty in Bhilwara

Stamp duty is a charge levied on a property transaction by a state or union territory government. The prevailing rate of the stamp duty in Bhilwara, Rajasthan is as follows:

Registration Charges in Bhilwara

Your property transaction will get registered in government records only when you pay the requisite registration charges. The rate of registration charge applicable to people purchasing property in Bhilwara, Rajasthan is:

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

According to a report published in Dainik Bhaskar 10 new industrial areas will be built in Bhilwara and this is going to take 8 to 10 years. This has been recommended even before the January 2022 investment summit. This will not only develop all the industries present in the city but also attract greater investment in the commercial real estate sector.

Other developments are also taking place like the launch of 5G services in Bhilwara. This will transform the city by attracting more people to make it their home which will ultimately increase the need for greater investment in retail and hospitality. Therefore if you invest in commercial real estate today you can benefit hugely in the near future.

Commercial Real Estate vs Other Asset Classes

Now let us check out the comparison between different commercial real estate versus other asset classes as per the returns they generate:

Commercial Real Estate vs Residential Real Estate

Commercial real estate is much less risk-prone than residential real estate as lease tenure is longer in this case. Therefore tenants do not keep changing as is the case of residential properties. Residential real estate however incurs better tax benefits than commercial real estate if a property is taken on a home loan. Commercial real estate performs better and offers much higher returns in comparison to residential real estate.

Commercial Real Estate vs Bonds

Bonds are much more stable and risk-free in comparison to commercial real estate. However, in the case of commercial real estate, the returns are much higher if you compare them with that of bonds. While in the case of tax benefits as well commercial real estate is better in comparison to bonds.

Are you interested in investing in an asset that offers risk-free as well as fixed returns of as high as 9 to 11%? If yes then you can register yourself at our website and start investing from the wide variety of options available.

Commercial Real Estate vs Gold

Gold is much more volatile and risky in comparison to real estate. In the case of commercial real estate, you get the opportunity to earn returns every month which is not a possibility in the case of gold. The Quantum of investment for commercial real estate is much higher in the case of real estate in comparison to gold. While gold is appropriate for both long-term as well as short-term investment commercial real estate is apt for long-term investment only.

Commercial Real Estate vs Stocks & Mutual Funds

In terms of consistency, real estate is much better in comparison to stocks and mutual funds. Stocks and mutual funds however offer much higher returns in comparison to real estate. While in terms of risk and volatility real estate is better than stocks and mutual funds. In the case of tax benefits mutual funds and stocks are better in comparison to real estate.

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

Steps to Invest in Commercial Real Estate in Bhilwara

Below are the steps that you can follow in case you are planning to invest in commercial real estate in Bhilwara:

Step 1: Prepare a budget keeping all your financial engagements in mind.

Step 2: Make a list of all the locations that might be apt for investing due to the presence of all the facilities that you are looking for.

Step 3: Consult with a broker and along with them visit every location in your list to confirm whether all their legal papers are authentic.

Step 4: Confirm a property only after checking whether it is RERA approved or not.

Step 5: Make payment for the property.

Step 6: Contact a lawyer and along with their help fulfil all legal requirements.

Step 7: Make payment for stamp duty and registration charges.

Step 8: Pay for the services opted from the broker and lawyer.

Step 9: To safeguard your property from any type of damage you can opt for an insurance policy that will help you remain financially prepared. This is in case your property gets damaged in the future.

Final Word

Bhilwara is an important industrial city in Rajasthan, which has its special identity in the textile, mica and building stone industries. Rapid development is taking place in the city not only because of the expansion of population but also because of the establishment of industrial units here. As the city is coming up with several new industrial areas, investing in commercial real estate might be a profitable venture for the near future.

Frequently Asked Questions

1. What are the different types of commercial property present in Bhilwara?

Ans.  Different types of commercial property where you can invest in Bhilwara are office spaces, warehouses, retail centres, shopping centres and hotels.

2. What are the documents that you need to check before purchasing a new property?

Ans. Before purchasing a new property you need to check the sale deed, approved building plan, a title deed, commencement certificate, completion certificate, encumbrance certificate, occupancy certificate, latest tax receipt and conversion certificate if needed.

3. How to confirm that the documents shown by the seller are genuine?

Ans. You can verify project approvals from a corporation or sanctioning authority office. You can also verify ownership documents from the sub registrar’s office from where they have registered the property. 

4. What are the things to look out for when investing in commercial real estate?Ans. Finding a tenant for commercial real estate is quite a tough job. You may have to do a lot of background checks before leasing someone your property. Apart from that you require higher investment in the case of commercial real estate if you compare it with residential real estate.