Guide for Ranipet Commercial Real Estate Investment

Ranipet, translated as the ‘place of queen’ is a famous industrial town that is located in the state of Tamil Nadu. This town houses innumerable small, medium and large-scale industries.

The city mainly stands out for industrial advancement, especially in the sector of leather production, chemical production and tool making. The industries being the primary lifeline of the place extend numerous investment opportunities. 

Before investing in commercial real estate in Ranipet, go through the sections below!

Top Reasons to Invest in Commercial Real Estate in Ranipet

You must be well aware of the following reasons why investing in commercial real estate in Ranipet will prove worthwhile:

• Strong Industrial Base

Ranipet is home to multiple industries that are dedicated to producing both finished leather and articles that are made from leather like shoes or garments which are further transported to different parts of the country. Even the place houses ceramic plants. One of the most popular is the EID Parry branch.  Besides manufacturing ceramics, the plant also manufactures fertilisers. 

Ranipet even hosts the Boiler Auxiliaries Plant of Bharat Heavy Electricals Limited (BHEL), one of the significant enterprises owned by the Central Government. Approximately 500 large and small size engineering units are there in Ranipet that cater to the requirements of BHEL. 

• Leather Industries

Leather is one such product that is manufactured in plenty in Ranipet. The town is home to reputed companies like AH group and KH group of companies. Around 400 small and medium-scale industrial units are there that are meant for leather production. The above-mentioned BHEL plant in Ranipet manufactures different boiler auxiliary instruments like Fans, FGD, ESP, etc., which further support the working of a thermal power plant.

• Easy Commutation 

Ranipet is well-connected via road, railways and airport. This is another reason why commercial real estate investment here is flourishing. The nearest railway station from Ranipet is Walajah road connectivity and the nearest junction is Katpadi junction which is located at a distance of 17 km from the town. Even the investment growth in Ranipet can be attributed to its location which is around 100 km from Chennai by road. Chennai International airport is the nearest airport to Ranipet.

Commercial Real Estate Investment Opportunities in Ranipet

Here are the places in Ranipet that are ideal for commercial real estate investments.

• Arcot

Arcot is a notable region in Ranipet that forms a trade route between Mysore Ghat and Javadi hills and Bangalore and Chennai. This place houses many weaving industries and is considered to be the main market for the agricultural area surrounding the region which opens the door for huge investment opportunities. In addition, Arcot is also popular for the production of edible oil, especially gingelly oil and groundnut production. 

• Vannivedu Mottur

Vannivedu Mottur is a small hamlet in Ranipet that is ideal for commercial real estate investment. Mukundarayapuram Railway Station and Walajah Road Junction Railway Station are the nearby railheads to Vannivedu Mottur. The place houses many components that aid the growth of industries. 

• Vellore

Vellore is another locality near Ranipet that can make your commercial real estate investment rewarding. This place is considered to be the leather hub of India, the extent of which is found even in Ranipet.  There are multiple tannery and leather units in the place. The chemical plants that are present in Ranipet-SIPCOT economic zone are the primary income source for residents of Vellore.

Things to Consider Before Investing in a Commercial Property in Ranipet

Before you go ahead with your commercial real estate investment in Ranipet, consider the following parameters.

• RERA Authentication

As per the provisions of RERA, it is mandatory for real estate brokers or agents to update all project-related information and documents in the official RERA portal. Even developers have to solve disputes with the investors or buyers under RERA rules. The implementation of RERA intends to curb project delays and brings in standardisation and accountability in the real estate sector. Even RERA puts a lot of emphasis on timely project completion. 

Hence, settle for a property that is TNRERA-registered. It will help you tide over discrepancies and gather all project-related data. 

• Market Dynamics

You must know about the prevailing market trends before investing in commercial real estate.  In this regard, analyse the current economic trends, unemployment rates, trending business sectors etc. An in-depth understanding of market trends will help you understand the supply and demand patterns of the properties. In addition, you can also articulate the market’s existing and future outlook. 

Following the shifting market trends and economic trends, you can evaluate your investment and earn higher returns. 

• Property Location

How your commercial real estate investment will perform in the future is dependent on its location. Factors like the presence of major highways, and proximity to airports and railway stations determine the value of assets. For instance, a commercial property site that is close to ports or harbours will benefit those who are into exports or manufacturing. 

However, the site will not benefit those who are into software operations. Hence, settling for the right property site will help you reap the most of it. 

Stamp Duty in Ranipet

In Tamil Nadu, the stamp duty rates and registration charges are no different for men, women and joint property owners.  The stamp duty rate In Ranipet, Tamil Nadu is 7% of the total worth of the property, registration charge is 4% of total value of the property. 

Refer to the table to see how the stamp duty rate is levied depending on the different types of documents.

Registration Charges in Ranipet

Here are the registration charges that are levied during property transactions besides stamp duty:

Ranipet Commercial Real Estate Sector- What’s the Forecast?

The State and the Central Government have been taking constant initiatives to uplift the industrial growth in Ranipet. With time the town has been upgraded from 1^st Grade Municipality to Selection Grade Municipality. 

As discussed in the 2023-24 budgets, railway networks in Tamil Nadu will witness expansion. Around ₹1057 crore is allocated for the construction of nine new lines which will link Ranipet, Mamallapuram, Tiruvannamalai, Dhanushkodi, Cuddalore, and Dharmapuri with the rest of Tamil Nadu. The robust expansion of the railway network will not help in increasing economic activity but will also boost tourism which widens the chance of the development of the hospitality sector. 

Tamil Nadu has also declared to invest a lump sum amount of ₹2250 crore in the leather and footwear sector which again proves to be a lucrative opportunity for one willing to invest in a commercial real estate sector.

Commercial Real Estate Vs Other Asset Classes

The section below highlights the comparisons between commercial real estate and other diverse asset classes. 

• Commercial Real Estate vs Gold

Gold is a liquid asset that can be encashed very easily at the time of monetary exigencies. It also fits short and long-term investment tenures.  However, this commodity’s value is highly volatile and carries a high chance of getting stolen. Commercial real estate, on the other hand, is favourable for long-term investment and is subjected to lower volatility, hence is considered a more stable investment choice than gold. 

• Commercial Real Estate Vs Bonds

The value of bonds remains static hence they are regarded as fixed-income securities. The static value makes it easy for you to foresee future earnings and gain visibility regarding your future financial health. Commercial real estate is another effective investment choice that helps earn higher returns. Real estate investment will bestow you with the power of leverage which will further boost the rate of returns. 

If you want to dodge risks and opt for a low-risk investment choice, you can invest in bonds. You may explore top-rated bonds and register for the same now!

• Commercial Real Estate vs Residential Real Estate

With commercial real estate investment, you can earn comparatively higher returns. Another crucial aspect of investment in commercial real estate is the convenience of dealing with tenants. However, residential real estate gives out low rental incomes and comes with high maintenance costs. Also, residential properties are susceptible to damage due to frequent tenants change. 

• Commercial Real Estate Vs Stocks and Mutual Funds

Though you earn higher returns by investing in mutual funds and stocks, your fund is exposed to the equity market. You can end up losing substantial money if you do not have a deep understanding of the market. On the other hand, owing to the market volatility, commercial real estate investment is comparatively much safer than stocks and mutual funds. Commercial real estate will also help you have a regular monthly income.

Get an overview of the particularities of different asset classes from the comparison table. (Comparison is done based on liquidity, volatility, returns, risks and ticket size)

Steps to Invest in Commercial Real Estate in Ranipet

Here are the steps that will help you materialise your commercial real estate investment plan in Ranipet:

Step 1: Go through your finances and estimate a fixed budget.

Step 2: Choose potential property locations and conduct both online and off-site research. 

Step 3: Shortlist some of the property locations based on your budget and investment goal. Ensure that the property has wide future infrastructural prospects. 

Step 4: You can also reach out to a real estate agent to get comprehensive guidance regarding commercial real estate investment. They have thorough knowledge regarding the market condition and locality.  

Step 5: Only after ensuring that the property is RERA-approved, finalise it.

Step 6: In order to complete property transactions and transfer ownership, initiate payment for stamp duty and registration charges. Make payments for the service fees if you have taken help from a real estate broker or agents and lawyers.

Step 7: To secure your newly purchased property from unforeseen circumstances, avail of a comprehensive insurance plan.

Final Word

Ranipet has flourished as an industrial hub with time and has laid out huge investment opportunities in the form of industries like leather industries, engineering units, petrochemical units, housing many small, medium and large-scale industries. Before utilising the massive investment opportunity in Ranipet, you must be well aware of the particularities of property, future prospects, associated charges etc.

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