Guide for Raichur Commercial Real Estate Investment

The city of Raichur is located in the northeast part of Karnataka. It is a popular tourist spot as it has a number of monuments which were built during the Vijayanagara empire era. It is known as the rice bowl of India as it has fields of rice and paddy, which are exported to different countries. Hence, Raichur is a prominent city with commercial opportunities in both tourism and food production. 

Let us understand how investing in commercial real estate in Raichur might help you earn great returns on investment. 

Top Reasons to Invest in Raichur Real Estate

Here are some of the reasons why you might want to invest in real estate in Raichur:

• Tourism

Raichur fort is one of the historical attractions in the district. Another notable town is Anegundi which has monuments back from the time of the Vijaynagara empire. There are various temples as well that act as tourist spots. Therefore, investing in commercial properties like hotels and restaurants might be profitable here.

• Industries

Raichur has a good trading market in the cotton industry and has gold resources as well. Raichur Thermal Power Station, situated at Shaktinagar, generates electricity for Karnataka. According to resources, with the advantage of location and ability to absorb modern technology, this location is in its take-off stage in regards to industrial growth. 

Commercial Real Estate Investment Opportunities in Raichur

Here are some of the places which are suitable for commercial real estate investment in Raichur:

• Azad Nagar

This locality has great connectivity in terms of railways, with a railway station which is only 2 km away and a bus stop, which is just 500 m away. There are a number of shopping malls like Vishal mart and Reliance mart, making it an apt retail location worth investing in. 

• Androon Quilla 

This area has good transport facilities with great cab and auto facilities. Both bus stand and the railway station are within walking distance. It has great rating when it comes to safety and lifestyle and therefore is a great residential area. Therefore, if you are planning to invest in commercial real estate, investing in shops and hotels might be truly worth it. 

Things to Consider Before Buying a Commercial Property in Raichur

Here are some of the points that you should keep in mind before buying a commercial property in Raichur:

• RERA Authentication

The Real Estate Regulatory Authority (RERA) is a body that looks into the transparency and accountability of the real estate sector in India. This body was established after passing of the Real Estate Regulatory Authority Act of 2016. Therefore, before buying a property in Raichur, make sure to check the authenticity of the builder as well as the property by visiting the official RERA Karnataka website.

• Analyse Neighbourhood

Location of your investment is imperative as there might be some locations that get less affected during an economic downturn. Additionally, checking the connectivity via road, rail and water is necessary as it might be instrumental in getting great ROI. 

Stamp Duty in Raichur, Karnataka

Stamp duty rates are different for different states and are levied on the basis of the market value of properties. Following are the rates of stamp duty applicable in Raichur, Karnataka:

Registration Charges in Raichur, Karnataka

For both individually or jointly owned (male and female) properties, the registration charges are equal in Raichur. Here is the rate of registration charges applicable in Raichur: 

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

While the starting price of a property in Raichur might be around ₹80 per square foot, the average price of property here may range around ₹5,124 per square foot. These price trends show that both buying and selling properties in Raichur might be profitable at the moment. 

Most expensive properties in Raichur may range around ₹20,000 per square foot. According to reports, property registration has continued its upward trajectory. Therefore, investing in commercial real estate in Raichur might be a profitable venture.

Also Read: Guide for Sangli Commercial Real Estate Investment

Commercial Real Estate vs Other Asset Classes

Following is a comparison between commercial real estate versus other asset classes and the returns they generate:

Commercial Real Estate vs Gold

Real estate requires a much higher quantum of investment in comparison to gold. However, gold is highly volatile and risky in comparison to real estate. However, gold is more liquid as it can be easily converted into cash. 

Commercial Real Estate vs Bonds

Real estate offers better inflation-beating returns, which is not the case with bonds, as it offers almost fixed returns. Bonds are, however, much more secure in comparison to real estate. Additionally, bonds are highly liquid investment options. 

Are you interested in investing in bonds and earning fixed returns of 9-11%? If yes, register on our platform today and start investing in the top-rated bonds of our country. 

Commercial Real Estate vs Residential Real Estate

Investing in commercial real estate offers you better returns in comparison to residential real estate. Tax benefits are, however, more in case of residential real estate if you get the property using a home loan. 

Commercial Real Estate vs Stocks & Mutual Funds

Stocks and mutual funds offer much higher inflation-beating returns which is not the case for returns generated from real estate. However, commercial real estate investment offers you the opportunity to earn passive rental income, which is not the case with stock-oriented investments. 

Here is the tabular representation of comparison between different types of assets on the basis of returns, liquidity, risk, volatility and ticket size:

Also Read: Guide for Imphal Commercial Real Estate Investment

Steps to Invest in Commercial Real Estate in Raichur

Here are the steps that you can follow if you wish to start investing in commercial real estate in Raichur:

Step 1: Fix your investment budget. 

Step 2: Search online about the city’s most profitable and developed areas.

Step 3: After finalising some potential sites, plan a field visit to each one of them to look into the infrastructure and amenities available nearby.

Step 4: After finalising a property that suits your requirements, prepare the necessary documents like title deed, sale agreement, property assessment extract, foundation certificate, etc. 

Step 5: Complete the payment process. Make sure to pay the stamp duty and registration charges to register the property in your name.

Final Word

It is wise to opt for a property only after confirming whether it adheres to the norms of RERA or not. If you do not check this, you might face many legal complications in the future. Also, opting for an insurance policy for your property might be helpful if there is any damage to your property and you do not have the necessary funds to repair it. 

Frequently Asked Questions