Guide for Chandrapur Commercial Real Estate Investment

Chandrapur which was officially known as Chanda until 1964, is a city in Maharashtra. Due to the rich reserves of coal present in this city, it is nicknamed ‘Black Gold City’. Other than coal mining, industries like paper manufacturing, cement production, ferroalloy manufacturing, etc., also trade in Chandrapur. 

It was finalised in December 2022, 720 acres of land will be utilised to construct a greenfield airport just 40 km away from Chandrapur. This was due to the problem of extending the airport already present in Chandrapur. In terms of connectivity, Chandrapur has all modes of public transport available.

Keep reading to learn more about how investing in the industrial city of Chandrapur might be worth your money:

Top Reasons to Invest in Chandrapur Real Estate

Here are some of the reasons why you would want to invest in commercial real estate in Chandrapur:

• Connectivity

Chandrapur has all modes of public transport available whether it is road, rail or air. It lies on prime state highways such as MH MSH 9, MH MSH 6, MH SH 243, MH SH 233 and MH SH 264. Maharashtra State Road Transport Corporation bus services are available from Chandrapur to different important parts of Maharashtra. 

There are a total of 5 stations available within city limits which are Chandrapur railway station, Chanda Fort railway station, Babupeth railway station, Vivekanand Nagar railway station and Choti Padoli railway station. 

In terms of airports as well there is an airport present in the city. As this airport is limited due to surroundings another greenfield airport is being constructed in Vihirgaon which is only 40 km away. Therefore, investing in commercial real estate in Chandrapur might be worth it.

• Industries

Chandrapur is famous for its coal reserves and mines, therefore it is known as ‘Black Gold City’. Apart from that there is a thermal power station present here. Besides, industries like paper manufacturing, cement making and ferro alloy manufacturing are also present in Chandrapur increasing the worth of the city and transforming it into a hotspot for commercial investments.

Commercial Real Estate Investment Opportunities in Chandrapur

Below is a list of some locations that might be apt for investing in commercial real estate in Chandrapur:

• Tukum

It is one of the good areas in the city. Autos and city buses connect Tukum to major destinations in the city. You will get all the basic amenities within a 5 km radius. The area is maintained well by a municipality as it is neat and clean all the time. Banks and shopping malls are within walking distance. The rate of commercial property here ranges from around ₹5,000 per square foot to ₹10,000 per square foot.

• Kosara

It is a prime neighbourhood of Chandrapur. Kosara is well-connected with different parts of Chandrapur due to the presence of a railway station and inter as well as intra city bus services. This makes travelling to nearby locations very convenient. The rapid pace of development in Kosara is attracting many builders to purchase plots in Kosara.

All basic amenities and facilities available here are attracting more commercial real estate investors. The reason is this increasing population will naturally require more retail and hospitality investments. The rate of commercial property here ranges around ₹20 lakhs.

Things to Consider Before Buying a Commercial Property in Chandrapur

Here are some of the points that you can keep in mind if you are planning to purchase a commercial property in Chandrapur:

• RERA Approval

It is helpful if you check whether the property that you are purchasing is authentic or not. So that in future you do not fall into any legal complications. You can check the authenticity of both the builder and the property by visiting the official website of RERA Maharashtra. 

The Real Estate Regulatory Authority is a body that looks into accountability and transparency of the real estate sector in India. This body started functioning after the enactment of the Real Estate Regulatory Authority Act of 2016.  

• Rental and Resale Value

It is of utmost importance to acquire a complete knowledge about future gains that you can reap by renting and reselling the property as a commercial real estate investor. You can go and inspect the current infrastructure as well as find out about any proposed future development. Return on Investment of your property will depend on the location’s extent of connectivity as well. 

Stamp Duty in Chandrapur

Stamp duty is a legal tax payable mandatorily when you purchase a property and acts as evidence for the purchase of the property. Here is the rate of stamp duty applicable to the people of Chandrapur, which falls in Nashik:

Registration Charges in Chandrapur

While you are registering a property in Chandrapur, you are obliged to pay registration charges at a rate decided by the Maharashtra government. Below is the rate of registration charge applicable to people purchasing property here:

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

Chandrapur is undergoing a lot of development and therefore is transforming into a commercial hub in near future. According to a report published by Times of India, the Chief Minister of Maharashtra Mr Eknath Shinde has agreed on extending Hindu Hriday Samrat Balasaheb Thackeray Samruddhi Expressway up to Chandrapur. A total of 165 km extension will be done to the 701 km expressway.

This will boost tourism as well as industries in the area. The construction of a greenfield airport will also help in the transportation of minerals and the production of many other industries present here. According to minister Sudhir Mungantiwar, 720 acres of land are needed for the construction of this airport of which half has already been arranged. All these infrastructural developments will become the reason behind an increase in demand for commercial properties from investors.

Commercial Real Estate vs Other Asset Classes

Let us check out the comparison between commercial real estate versus other asset classes on the basis of returns and other factors each of these assets generate:

Commercial Real Estate vs Gold

Gold is volatile and risky in comparison to real estate. However, it offers more liquidity to investors than real estate. Real estate, on the other hand, offers you the opportunity to earn returns every month which is practically not possible in the case of gold. 

In terms of the quantum of investment, gold is comparatively more affordable than real estate. While gold is apt for both long-term and short-term investments, real estate is apt for only long-term investments.

Commercial Real Estate vs Bonds

Real estate offers higher returns in comparison to bonds. However, bonds are much more risk-free and less volatile in comparison to real estate. In the case of tax benefits, however, real estate is better in comparison to bonds.

Are you interested in investing in an asset that is almost risk-free and offers fixed returns of as high as 9 to 11%? If yes, then you can register yourself on our website today and start investing from the wide range of bonds available to you.

Commercial Real Estate vs Stocks & Mutual Funds

Real estate is less risky and volatile in comparison to stocks and mutual funds. In terms of performance and returns, however, stocks and mutual funds are better in comparison to real estate. The Quantum of investment as well is much higher in the case of real estate in comparison to stocks and mutual funds. Consistency is better in the case of real estate in comparison to stocks and mutual funds.

Commercial Real Estate vs Residential Real Estate

Commercial real estate offers much higher returns in comparison to residential real estate. In the case of tax benefits, however, residential real estate is better in case property is purchased by taking a home loan in comparison to commercial real estate. Commercial real estate is less risky as lease tenure is longer and therefore tenants do not keep changing as is the case of residential real estate.

Now let us check out the tabular representation of comparison between different asset classes as per their returns, liquidity, risk, volatility and ticket size:

Steps to Invest in Commercial Real Estate in Chandrapur

Here are the steps that you might want to follow if you are interested to invest in commercial real estate in Chandrapur:

Step 1: Set up a budget keeping your financial status in mind.

Step 2: Prepare a list of all the locations that you find to be apt for investment.

Step 3: Hire a broker and along with them visit every location. Cross-check whether all their documents are authentic.

Step 4: Select a location only after confirmation of whether it is RERA approved or not.

Step 5: Pay for the property.

Step 6: Hire a lawyer and with their help prepare all legal documents.

Step 7: Complete payment of stamp duty and registration charges. 

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

Step 9: Lastly, to secure your property from any type of damage, opt for an insurance policy to remain prepared financially to deal with such a problem in near future.

Final Word

The industrial city of Chandrapur also known for its famous tourist destination Tadoba Andhari Tiger Reserve is transforming into a hotspot of commercial investments. Not only the State Government but also the Central Government are taking steps to improve this city so that more companies and industries are attracted to set up their branches here. 

The development of a greenfield airport and the extension of expressways are some examples of the steps taken by both centre and the state. Several Institutes have been inaugurated by the PM and this will help in providing a skilled workforce which might develop this city further.

Frequently Asked Questions