Guide for Raipur Commercial Real Estate Investment

Raipur is the capital city of Chhattisgarh, located in Central India. It is the 2^nd largest commercial centre in the state, with many industries and mineral deposits. 

This city is known for its limestone, coal and agro-based industries and cement manufacturing companies such as Ambuja, Lafarge and Century Cements. The city has the biggest iron and steel plants with 6 steel plants, 25 ferro-alloy mills, 195 sponge iron mills and 200 steel rolling mills.  

Raipur also has a significant forest area with over 9,06,700 hectares of forests and, thus, a large-scale wood industry. Agriculture is also one of the biggest contributors to Raipur’s economy. There are around 800 agro-based industries and 300 rice milling plants in Raipur.

Besides employment opportunities, the capital city boasts surplus electricity and excellent connectivity with nearby cities. It has its own airport and railway station, which supports commercial growth.

If you want to invest in commercial property in Raipur, read the information given below to learn everything you need to know.

Top Reasons to Invest in Raipur Real Estate

Raipur is a rapidly developing city with promising future aspects. Here are the main reasons to invest in commercial real estate in this city:

• Industrial Growth

Raipur is a prime location for setting up a new business. It is the commercial hub of Chhattisgarh and has a high penetration of industries. Raipur’s economy is driven by the steel market, rice mills, agriculture trade, and minerals market. It is currently developing modern infrastructure to accommodate industries like IT and other sectors.

• Connectivity

Raipur is located centrally in India and is well-connected to major cities like Mumbai, Kolkata, Delhi, Amritsar, Bangalore and Pune via the Howrah-Nagpur-Mumbai line and other railway routes and roadways like NH-6 and NH-43. For local transportation, there are many auto-rickshaws, private taxis and public buses operated by Raipur City Bus Limited (RCBL).

• Return on Investment

The current trends in the real estate market in Raipur are seeing an uprise due to its rapid development. Therefore, investing in commercial property in Raipur will likely fetch you good returns in the future from capital appreciation.

• Rental Yield

Raipur city is in high demand for employment opportunities, and as a result, demand for living and office spaces continues to increase. Therefore, investment in commercial properties in Raipur will fetch you high rental income if planned carefully.

Commercial Real Estate Investment Opportunities in Raipur   

Buying a commercial space in these locations in Raipur is a smart choice for any investor.

• Mowa

Mowa in Raipur is a busy locality with good connectivity with the rest of the city. Hence, properties in this locality are in popular demand and a good option for commercial real estate investment. The average property value in Mowa is around ₹3,192 per square foot.

• Naya-Raipur

It is the most planned and developed part of the city, with modern amenities and several commercial hubs. It is soon to become the hotspot of the town with the best business opportunities. The average cost of commercial properties in this area is ₹2,750 per square foot.

• Dhamtari Road

This locality is near major parts of the city and is well connected via rail with the rest of the country. Telibandha Railway station and Raipur Junction railway are close to this area. It also has several residential projects and is a very safe area. The average cost of commercial properties here is ₹3,000 per square foot. 

Also Read: Guide for Varanasi Commercial Real Estate Investment

Things to Consider before Buying a Commercial Property in Raipur

Investment in real estate is a long-term financial commitment financially. Hence, it is important to consider all factors mentioned below before investing in commercial real estate to ensure a profitable return:

• Location and Connectivity

A commercial property has more future potential as an investment if it is located in a rapidly developing area and is expected to multiply in value in the future. In addition, properties with easy access to public transportation and strategic value are in higher demand and ensure better returns. 

• Lease Contract

The lease contract is made between a property owner and a tenant for a specific time. Before you finalise your investment, check the requirements per the lease agreement and read the fine print thoroughly to be clear of the document’s terms and conditions.

• Property Valuation

As an investor, you should check if the asking price for a shortlisted property is worth making an investment in, keeping in mind its future aspects and returns. You can take the help of a real estate broker to get an accurate estimate.

• RERA Verification

As per the provisions of the Real Estate Regulatory Authority Act 2016, every state must have a dedicated RERA body monitoring all real estate activities and participants. All builders and brokers should be registered with the state RERA body and timely update information about real estate projects.

Therefore, you should verify the details of your shortlisted properties and builders from the official website of RERA Chhattisgarh.

• Infrastructure

Commercial properties in prime locations which get good infrastructure and proximity to amenities get better demand. Before you invest in a property, check whether it has properly maintained streetlights, sidewalks, parking facilities, plumbing, lifts, emergency staircase, drainage system, water storage and transit. 

Stamp Duty in Raipur

The stamp duty charges involved in real estate purchases in Raipur are mentioned below:

Registration Charges in Raipur

The following are the registration charges for commercial properties in Raipur:

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

Over the years, the city of Raipur has witnessed substantial industrial growth, which has brought many people and more businesses here. Raipur is developing rapidly under the administration of the local government, which plans to make Chhattisgarh a developed state. This city has several amusement spots for recreation and entertainment, including malls. 

The Chhattisgarh State Government has announced an allocation of land for Raipur Airport‘s development and an Aero City near the airport. In addition, under the Indian Railways, the Vande Bharat Express for the Nagpur-Bilaspur route will run via Raipur, improving the city’s connectivity.

As mentioned above, this city’s industrial development and popularity will also help in rapid development, which will boost the real estate market exceptionally in the coming years.

Commercial Real Estate vs Other Asset Classes

Investing in different assets provides diversity to your portfolio and improves the rate of return in the long term. Given below is a detailed comparison of commercial real estate and other asset classes to help you make an informed decision.

• Commercial Real Estate vs Bonds

Bonds are fixed-interest investments that offer a low-moderate level of returns at moderately low risks. Commercial real estate investments offer higher returns in comparison to bonds. With commercial real estate, you can make profits through rent and by selling the property.

Bonds are good investment options for risk-averse investors and those trying to balance their portfolios. If you are looking to invest in bonds, register and check out our offerings.

• Commercial Real Estate vs Stocks & Mutual Funds

Stocks and mutual funds are high risks, high-return assets that are also sensitive to market fluctuations. On the contrary, commercial real estate investments are comparatively stable and do not directly depend on the stock market’s behaviour. However, the initial capital required for commercial real estate is much higher.

• Commercial Real Estate vs Gold

Commercial real estate offers higher long-term returns compared to gold-related investments. However, gold investments are safer than real estate and much easier to liquidate, as you don’t have to wait to find suitable buyers.

Commercial Real Estate vs Residential Real estate

Residential real estate is a moderately safer investment than commercial real estate. However, commercial real estate has more demand and offers much higher returns than residential real estate. 

The table below illustrates the above assets based on their returns, liquidity, risk, volatility and ticket price.

Steps to Invest in Commercial Real Estate in Raipur

To invest in a commercial property in Jaipur, follow the steps given below:

Step 1: Narrow down on a budget for your investment.

Step 2: Conduct a market survey and understand market trends.

Step 3: Shortlist a few properties that best fit your demands.

Step 4: Arrange a site visit with your broker and finalise your selection.

Step 5: Check the property documents and builder details from the RERA website.

Step 6: Complete the transaction with the property seller and pay the real estate broker.

Step 7: Submit all required documents and pay the stamp duty and registration charges.

Step 8: Finally, secure your property with an effective insurance policy.

Read More: Guide for Puducherry Commercial Real Estate Investment

Final Word

The real estate market in Raipur shows high demand among investors due to its promising return aspects. Based on this reason, commercial property investment in Raipur will likely be a very profitable investment for you. However, it is important to check the property’s ownership details and documentation before making a life-changing decision.

Frequently Asked Questions