Guide for Rewa Commercial Real Estate Investment
Located in the north-eastern region of Madhya Pradesh, the city of Rewa is the administrative centre of the Rewa district and division. The economy of this area is mainly dependent on agriculture; however, the industrial and service sector is also growing at a sustainable pace.
According to a survey, this city currently has more industries than most other districts in the state. Furthermore, the rich mineral deposits in this area have attracted significant investments from multinational companies, thereby creating an increasing demand for commercial real estate.
Let’s see how investing in Rewa’s commercial real estate sector can be profitable for you.
Top Reasons to Invest in Rewa Real Estate
These are some of the reasons why you should invest in Rewa’s real estate sector:
- Enhanced Connectivity
When it comes to connectivity, Rewa has all the boxes ticked. This area has its own railway station linked to Satna, a location that lies on the Howrah-Allahabad-Mumbai line. This enables people to travel to major parts of India from this city.
Moreover, national highways like NH 7, NH 27, NH 75 and NH 30 cross through Rewa, giving its residents access to important locations around the country. Apart from this, this city also houses the Rewa Airport connecting its inhabitants to major Indian cities like Mumbai, Kolkata, Bengaluru, Delhi, etc.
- Source of Passive Income
Investments in Rewa’s commercial properties can be a reliable source of passive income. Given the presence of a growing industrial sector in Rewa, there is significant potential for growth when it comes to rental yield. You can make your money work for you without active participation and reap the benefits of a relatively low-risk investment.
Commercial Real Estate Investment Opportunities in Rewa
Here are a few places where you can consider purchasing commercial real estate in Rewa:
- Indira Nagar
Indira Nagar is one of the best localities for purchasing commercial property in Rewa. It is situated near the main road giving its residents ample transportation facilities. Moreover, shopping malls, banks and hospitals nearby make it an ideal location for growing one’s business.
This area also enjoys stable electricity and water supply, enabling people to carry on with their business activities unhindered.
- Chirahula Colony
Chirahula Colony is another excellent commercial location in Rewa. This area has good connectivity, ample parking space, shops, open spaces, hospitals, etc., which are necessary for a company to settle down in this area.
Additionally, this colony also has excellent transportation facilities that enable people to commute easily.
- Anantpur
Anantpur can also be a great choice for business owners. This location has ample transportation facilities, like bus stops and a railway station. The roads do not suffer much traffic congestion, allowing people to travel easily. There is ample parking space for two as well as four-wheelers, which is a priority for companies that open offices in this area.
Furthermore, apart from an uninterrupted supply of electricity and water, this area also has a hospital that is open 24/7. So, if you want to buy commercial real estate in Rewa, Anantpur should be on your list of top locations.
Also Read: Guide for Yamunanagar Commercial Real Estate Investment
Things to Consider Before Buying a Commercial Property in Rewa
Here are a few things that you must consider before purchasing commercial property in Rewa:
- Location of the Property
When buying commercial property, choosing a proper location is mandatory. This greatly determines the rental yield and how easily you can get a suitable tenant. In this regard, selecting commercial spaces with good connectivity to all parts of the city, adequate transportation facilities and modern infrastructure is a must.
- Basic Amenities
A commercial property must have all the amenities nearby to allow your tenants to settle down easily. These include banks, hospitals, police stations, fire stations, departmental stores, etc. Moreover, the area you choose must have a constant supply of electricity and water. These two aspects are vital for the day-to-day functioning of businesses.
- RERA Verification
Another important thing you must do before purchasing commercial property in Rewa is to check its authenticity by visiting the RERA portal of Madhya Pradesh. You can get detailed information on the project, builder’s reputation, etc.
RERA, or the Real Estate Regulatory Authority, is a statutory body which was established after the enactment of the Real Estate Regulatory Authority Act in 2016. All property developers and brokers of a particular state must enlist all their personal and project details on the state RERA portal.
Stamp Duty in Rewa, Madhya Pradesh
Prospective property buyers must also remember that stamp duty is a part of their investment amount. So, it is essential to keep the following stamp duty rate in mind.
Gender | Stamp Duty rate (% of property value) |
Male | 7.5% |
Female | 7.5% |
Joint (Male+Male) | 7.5% |
Joint (Male+Female) | 7.5% |
Joint (Female+Female) | 7.5% |
Registration Charges in Rewa, Madhya Pradesh
To transfer the ownership of the property to your name, you need to pay a registration fee to the state government. The registration fee in Rewa is as follows:
Gender | Registration charges (% of property value) |
Male | 3% |
Female | 3% |
Joint (Male+Male) | 3% |
Joint (Male+Female) | 3% |
Joint (Female+Female) | 3% |
Rewa Commercial Real Estate Sector: What’s the Forecast?
Rewa’s economy has a significant potential for growth in the long term. Apart from its developing industrial sector, this city also has a thriving tourism industry. The rich flora and fauna, breathtaking waterfalls and Rewa’s rich history attract millions of tourists each year.
This creates a demand for commercial properties that you can take advantage of by investing in this city’s commercial space.
Commercial Real Estate vs Other Asset Classes
Here is a comparison of commercial real estate vs other major asset classes:
Commercial Real Estate vs Residential Real estate
When it comes to commercial properties, their rent tenures are longer, and, in the long run, commercial spaces generate significantly more rental yield than residential ones. Additionally, rental prospects for commercial properties are always high.
Commercial Real Estate vs Bonds
Similar to commercial real estate, bonds also serve as a reliable source of passive income. In addition, bonds have lower credit risks as commercial properties come with the hassle of collecting lease payments.
On top of that, selling commercial real estate is more challenging than bonds. The transaction costs are higher, and you need to find a suitable buyer to sell your property.
Do you wish to invest in bonds that offer stable returns of 9-11%? Register on our platform now and start investing in top-rated bonds available in the market.
Commercial Real Estate vs Stocks & Mutual Funds
Stock and mutual fund investments offer higher returns than commercial real estate. However, returns from real estate investment are not as volatile as the returns from stock market, enabling you to plan your finances properly.
Commercial Real Estate vs Gold
Purchasing commercial property can give you a golden opportunity to earn significant returns down the line; however, gold is a much safer investment, offering more liquidity. Furthermore, its value is less volatile as compared to commercial real estate.
Here is a tabular representation of the comparison of the asset classes based on risk, returns, liquidity, volatility and ticket size.
Parameters | Commercial Real Estate | Stocks & Mutual Funds | Gold | Residential Real Estate | Bonds |
Returns | High | High | Moderate | Moderate | Moderate |
Liquidity | Low | High | High | Low | Moderate |
Risk | Low | High | Low | Low | Moderate |
Volatility | Low | High | Low | Low | Low |
Ticket Size | High | Varies | Low | High | Varies |
Steps to Invest in Commercial Real Estate in Rewa
The steps to buying commercial real estate in Rewa are as follows:
Step 1: Decide your investment budget.
Step 2: Create a list of suitable commercial locations as per your requirements.
Step 3: After shortlisting a few properties, plan a field visit to each one of them to assess them in terms of infrastructure, connectivity, etc.
Step 4: After finalising a property, prepare the necessary documents like sale agreement, title deed, encumbrance certificate, building plan, etc.
Step 5: Complete the payment process. Make sure to complete the stamp duty and registration formalities.
Step 6: Lastly, consider purchasing an insurance policy for your property to safeguard your finances.
Read More: Guide for Bidar Commercial Real Estate Investment
Final Word
With Rewa’s developing industrial and service sector, its commercial real estate sector has massive room to grow. Thus, if you plan to purchase commercial spaces in this city, now might be the right time to invest.
Frequently Asked Questions
Q1. Is commercial real estate investment worth it?
Ans. Yes, it is worth investing in commercial real estate. It offers greater returns when compared to residential property investments.
Q2. What to keep in mind while purchasing commercial real estate?
Ans. Location, connectivity, return on investment, infrastructure, etc., are some of the things that you must keep in mind while buying commercial real estate. Doing so will ensure earning a significant rental yield from your investment.
Q3. What are the different types of commercial properties?
Ans. The different types of commercial properties are retail stores, office spaces, warehouses, hotels, etc. You can invest in such properties and earn rental income.
Q4. What factors affect commercial property value?
Ans. Location, size, age, condition, renovation potential, state of the economy, etc., are some factors that affect a commercial property’s value. You should keep these factors in mind before investing in a commercial space.