Guide for Karnal Commercial Real Estate Investment

Karnal is a city situated in Haryana. This city has been selected as one of the 100 cities to be transformed into a smart city under Union government’s Smart City Mission. Karnal was ranked 24^th among 4000+ cities in the government survey called Swachh Survekshan in 2019. The city is attracting investment from real estate investors due to its modern infrastructure, clean air quality and great amenities.

Let us now understand how investing in commercial real estate in Karnal might prove to be profitable. 

Top Reasons to Invest in Karnal Real Estate

Here are some reasons why you might want to invest in real estate in Karnal:

• Futuristic Development

Situated near NH 1, Karnal enjoys infrastructural and geographical advantages along with its proximity to Delhi and Chandigarh. Haryana government is proposing many new projects for development of Karnal that include infrastructural development like widening of roads, introduction of the city bus service and much more. 

This city has made it into the ‘Smart City’ list, which will further catalyse its growth. All this is transforming it into a booming real estate destination for real estate players. 

• Industrial Setup

Karnal is famous for the manufacture of agricultural implements and spares. More than 40% of this country’s agricultural spares and implements are manufactured in Karnal. This, in turn, creates direct and indirect employment opportunities for a large number of people. Even the famous Liberty Shoes has its headquarters here, employing thousands of people.

Commercial Real Estate Investment Opportunities in Karnal

Here are a few locations in Karnal which might be suitable for commercial real estate investment: 

• Model Town

It is one of the most sought-after localities in Karnal, with all the facilities and great connectivity. Model town is well-connected to the centre of the city, commercial sector 12, supermarkets and much more. 

Many shopping malls and cinema halls are also present in the vicinity. As it is a posh locality, investing in commercial real estates like hospitality and retail might be really worth your money. Rate of property here may range around ₹3.15 crore.

• Sector 3

It is one of the sub-localities of the main city. Many banks and corporate and commercial offices are present in the locality. This industrial area or commercial complex is good in terms of safety, parking and other facilities. Rate of commercial property here might range around ₹60,072 per square foot.

Also Read: Guide for Bokaro Commercial Real Estate Investment

Things to Consider Before Buying a Commercial Property in Karnal

Here are some points that you might want to keep in mind if you wish to purchase a commercial property in Karnal:

• Price of Property

When you are planning to invest in commercial real estate, it is best to look for a property that comes at an affordable price. As a commercial real estate investor, you should research well by comparing prices of neighbouring properties, facilities offered and infrastructure. 

• RERA Authentication

Before opting for a property, it is essential to check the authenticity of both the builder and the property. In order to do so, in case of Karnal, you can visit the official website of RERA Haryana. 

RERA, or the Real Estate Regulatory Authority, is a statutory body that promotes accountability and transparency in India’s real estate industry. This body was established after enactment of the Real Estate Regulatory Authority Act of 2016. 

Stamp Duty in Karnal, Haryana

Stamp duty charges in Haryana varies between urban area and rural area. It is higher in case of urban areas, and there is special concession for women buyers as well. The stamp duty rates are as follows:

Registration Charges in Karnal, Haryana

To become a legal owner of a property in Haryana, whether it is transferred or new, it is compulsory to pay the requisite registration charges to the state government. Here are the rates applicable:

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

There has been a paradigm shift in the commercial real estate sectors as developers are now planning to invest in tier II and tier III cities. Karnal is one such city attracting the attention of many developers and buyers. This city is being labelled as the growth corridor of Haryana as it is enjoying undivided attention of real estate players. Karnal is among the top listed cities witnessing a boom in the real estate sector.

Out of the several new projects for development of the city, around 85% work is complete. The state government is proposing Haryana’s first domestic airport to be built in Karnal. The growing number of commercial projects is enhancing the city’s reputation as a real estate investment hub. Karnal has transformed into an investment hotspot. 

Commercial Real Estate vs Other Asset Classes

Here is the comparison between commercial real estate and other asset classes: 

Commercial Real Estate vs Residential Real Estate

Rents are higher, and the lease tenure is longer in case of commercial real estate. However, it is easier to find tenants for residential real estate properties. 

Commercial Real Estate vs Gold

Size of investment is much bigger in case of real estate. However, real estate investments help you to earn passive rental income, which is not possible in case of gold.

Commercial Real Estate vs Bonds

Commercial real estate offers greater returns in comparison to bonds. However, bonds are much more secure in nature and are highly liquid investment options. 

Want to invest in bonds and earn stable returns? If yes, register on our platform today and start investing in top-rated bonds available in the market. 

Commercial Real Estate vs Stocks & Mutual Funds

Although stocks and mutual funds tend to offer high returns, they are riskier and more volatile than commercial real estate. Also, investments in real estate don’t require in-depth research of the stock market. 

Here is the tabular representation of comparison of different asset classes according to their returns, liquidity, risk, volatility and ticket size:

Steps to Invest in Commercial Real Estate in Karnal

Here are the steps using which you can start investing in commercial real estate in Karnal:

Step 1: Prepare a budget for your real estate investment and create a list of locations as per their growth potential. 

Step 2: After shortlisting a few properties, plan a field visit to each of them to assess them in terms of infrastructure, amenities, etc. 

Step 3: Once you finalise a property that suits your requirements, prepare the necessary documents for the purchase, such as title deed, agreement, encumbrance certificate, etc. 

Step 4: Complete the payment process. Make sure to pay the required stamp duty and registration charges. 

Step 5: Lastly, consider purchasing an insurance plan for your property to safeguard your finances in case your property incurs any damage.

Read More: Guide for Mirzapur Commercial Real Estate Investment

Final Words

Karnal is considered one of the most ideal destinations for real estate investments in the National Capital Region (NCR). The city is located in close proximity to the six-lane Chandigarh expressway, which ensures seamless transportation from Karnal to cross-country locations. Easy accessibility to important cities, as well as planned development, is transforming Karnal into a preferred hotspot for both real estate developers and buyers.

Frequently Asked Questions