Guide for Singrauli Commercial Real Estate investment

Singrauli is a city in Madhya Pradesh which was previously the capital of a princely state. It is famous for its coal mines and power plants, making it India’s Energy Capital. It also has many industries here, and all of these generate a major portion of employment. Moreover, these thermal and coal stations produce 10% of the total installed capacity of India.

Thus, the demand for all these power plants and their generating employment makes it popular among builders to invest in commercial real estate here. 

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Top Reasons to Invest in Commercial Real Estate Property in Singrauli

The top 2 reasons to invest in the commercial real estate property of Singrauli are as follows:

1. Developing Connectivity

Singrauli has a developing connectivity with good roads and railway, which is improving every year. Moreover, this location is home to a larger community of people who can access their offices easily.

2. Job Opportunities

Singrauli is home to many industries and a coal mine, offering numerous job opportunities. Moreover, this location is near many important residential areas surrounding it, attracting builders to invest here.

Investment Opportunities in Commercial Real Estate in Singrauli

The locations having the best opportunities to invest in commercial real estate properties in Singrauli are as follows:

1. Waidhan

Waidhan is one of the famous commercial real estate areas in Singrauli due to the presence of many job opportunities here. The connectivity to this area through roads and railways is also very convenient. Moreover, the presence of coal mines in this area also makes it important.

2. Rewa

Rewa is an upcoming location for commercial real estate with developing infrastructure and job opportunities. It also has great connectivity to many important areas through roads and railways, which are very near to this location.

Also Read: Guide for Bhiwani Commercial Real Estate Investment

Things to Consider Before Buying a Commercial Real Estate Property in Singrauli

The main things to consider before buying a commercial real estate property in Singrauli are as follows:

1. RERA authenticity checker

RERA is a statutory body promoting transactions between real estate agents and buyers. It was notified by the RERA Act 2016. Here, one can check the authenticity of the builder and their property by visiting the RERA website of Madhya Pradesh.

2. Lease Structure

A lease is a legal agreement defining the relationship between a property owner and occupier. While analysing an investment, the tenant must understand its lease structure and risk involvement to avoid fraudulent activities.

Stamp Duty Rates in Singrauli, Madhya Pradesh

The stamp duty rates for commercial property sales in Singrauli are in the following table:

Registration Charges in Singrauli, Madhya Pradesh

The list of registration charges for commercial real estate sales in Singrauli is in the table below:

It is essential to consider the stamp duty rates and registration charges as they will be a part of your investment amount. These charges should also be noted while planning the budget.

Commercial Real Estate Sector Forecast in Singrauli

Singrauli is witnessing a drastic change in the commercial real estate sector due to the developing connectivity of this city, joining many important locations. Most importantly, a new airport is under-construction in Waidhan, namely Khajuri-khutar airport, to improve accessibility through airways.

Being a mining zone, it initially had very bad roads, causing disturbances in transportation. Hence, the Government has put their focus on developing new 4-lane and 6-lane highways for ease of vehicular movement. Some of these are NH 75, NH 75E, and NH 78.

Commercial Real Estate vs Other Asset Classes

The difference between commercial real estate and other asset classes is conducted on the basis of the following:

• Commercial Real Estate vs Stocks and Mutual Funds

Commercial real estate offers assured returns with direct asset ownership if we compare them with the stock market on an aggregate level. On the other hand, the stock market witnesses great fluctuation with higher risks but provides comparatively higher returns.

• Commercial Real Estate vs Gold

Real estate is a stable investment option offering low risks with additional tax benefits and generating passive income. On the contrary, gold is just a commodity which has higher volatility and risks of being stolen, but commercial property has no risk of being stolen.

• Commercial Real Estate vs Residential Real estate

Residential property faces a lack of demand than commercial space, especially in the premium category. Moreover, the vacancy risks for residential properties are higher in comparison to a commercial estate with the given frequent turnover of tenants.

• Commercial Real Estate vs Bonds

Bonds have a low credit risk than commercial real estate properties. Additionally, commercial property investments are more illiquid than bonds due to higher transaction costs and a longer time to find a suitable buyer.

A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:

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Steps to Invest in Commercial Real Estate in Singrauli, Madhya Pradesh

The steps to invest in commercial real estate in Singrauli, Madhya Pradesh, are as follows:

Step 1: Conduct proper market research.

Step 2: Finalise your financial budget.

Step 3: Shortlist some budget-friendly sites.

Step 4: Make a field visit to these sites and analyse them minutely.

Step 5: Finalise a commercial real estate property that is suitable.

Step 6: Prepare official documents and purchase the property.

Step 7: Complete registration charges and stamp duty formalities. 

Step 8: Pay service fees to real estate consultants and brokers if availed of their service.

Step 9: Cover your new property with an insurance plan.

Read More: Guide for Phusro Commercial Real Estate Investment

Final Word

Considering the rapid industrial growth and development, the commercial real estate sector of Singrauli is witnessing positive changes in terms of connectivity and infrastructure. This positive change is attracting promoters towards this area resulting in increasing demand for building office spaces. However, it is also necessary to conduct thorough market research before doing so to avoid any fraudulent activities.

Frequently Asked Questions