Guide for Solapur Commercial Real Estate Investment

Solapur is a Tier II city located in Maharashtra, close to the border with the neighbouring state Karnataka. The city is a hub of handloom and powerloom industries, as well as some beedi and tanning industries. Prominent small-scale industries in Solapur include wool-weaving, rope-making, carpentry and leatherwork. It is also an important destination for pilgrims as it houses many temples and places of religious significance. 

The handloom and powerloom weaving industry employs around 30,000 workers in the city. Napkins, towels and sheets manufactured in Solapur are exported to various countries across the world. 

Now let us explore the details of commercial real estate investment in Solapur. 

Reasons to Invest in Commercial Real Estate in Solapur 

Listed below are the reasons why you should invest in commercial properties in Solapur:

• Economic Development 

Residents of Solapur are witnessing increasing economic development as the city has been brought within the ambit of the Smart Cities Mission by the Government of India. Solapur City Development Corporation Limited is overseeing the implementation of many projects, including developments in lakefronts, streets, open spaces and the public realm. 

• Affordability

Commercial real estate prices are lower in Solapur compared to major Maharashtrian cities like Mumbai and Pune. Furthermore, open plots are available at much lower prices. With increasing development in the city, land prices are set to soar up higher in the coming days. That is why many people are investing in real estate here.

• Infrastructural Development 

Solapur is one of the largest cities in the southern region of Maharashtra. Along with Solapur University, there are many reputed colleges, including engineering and medical institutions, that provide a highly educated workforce for industries and businesses.

Another important feature of investing here is that developers consider the amenities available and how well-connected the place is with the rest of the city. As a result, commercial real estate investments are gradually increasing in Solapur. 

• Low Cost of Doing Business 

This is an important reason why you should consider investing in commercial real estate in Solapur. Considering the ongoing infrastructural development, business owners will benefit from low cost and ease of doing business. Moreover, the investment process is hassle-free.

Commercial Real Estate Investment Opportunities in Solapur

Provided below are the details of some of the best places you can consider for commercial property investments: 

• Murarji Peth 

Murarji Peth is bordered by National Highway 211 and State Highway 151 and is developing rapidly. This place offers investors a beautiful amalgamation of nature and urban conveniences. Good connectivity with the neighbouring areas with the presence of banks, ATMs, shopping centres and educational institutions are attracting numerous real estate developers and investors. 

The rent for a 300 sq ft office space in Murarji Peth is ₹6,000 per month.

• Bhavani Peth 

Bhavani Peth is an area in Solapur which is well-connected with the other areas of the city. People can consider investing in shops, office spaces and multi-family dwellings in Bhavani Peth. Dr Metan Hospital and Rupabhavani Temple are prominent landmarks in this area. 

The rent for a 1200 sq ft office space in Bhavani Peth is around ₹40,000 per month.

Things to Consider before Buying a Commercial Property in Solapur 

Listed below are the crucial factors to take into account before investing in commercial real estate:

• Check Authenticity through RERA 

Before investing in a commercial property in Solapur, you must visit the Maha RERA (Real Estate Regulatory Authority) portal to check its authenticity. This is particularly important as every developer in India needs to register themselves and list the details of their projects on their state’s official RERA website. 

• Lease Structure 

A lease is a legal contract that details the relationship between a property owner and an investor. You can consider consulting an advocate to get a clearer idea about the risks involved with a commercial real estate lease. 

• Builder’s Credibility

Conducting a background check on the builder is of vital importance. You need to find out how many projects the builder has successfully completed. Another important thing that you must find out is whether the builder has any legal proceedings pending against him. 

Stamp Duty in Solapur

Take into account the stamp duty rates in Maharashtra before investing in real estate: 

Registration Charges in Solapur 

You must know the registration charges of Maharashtra if you wish to invest in commercial properties in Solapur: 

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

The Union and State Governments have joined hands to transform Solapur into a regional economic hub. While the city already has flourishing textile and agro-based industries, the authorities have set up an IT (Information Technology) Park at Dongaon Road to create more employment opportunities. This initiative was taken to address the brain drain from Solapur to Mumbai, Bengaluru and Pune. 

Furthermore, the district administration is working tirelessly to improve the city’s water supply, sewerage, stormwater drainage and solid waste management. With the increasing economic and infrastructural development, Solapur is all set to emerge as the next prominent contributor to the development of Maharashtra. 

As a result, commercial real estate investment in Solapur has the potential to generate high returns in the future. 

Commercial Real Estate vs Other Asset Classes

Let us compare commercial real estate investments with different asset classes: 

Residential Real Estate vs Commercial Real Estate

Compared to residential properties, commercial real estate has the potential to generate higher returns. Greater prospects of rental income are an added advantage over residential real estate. Moreover, rising demands for commercial properties in emerging cities like Solapur hold the promise of better business prospects.  

Commercial Real Estate vs Gold

While it is true that commercial real estate investments have a bright future in Solapur, gold is a much more secure and safer investment option. Gold is however a very liquid asset class compared to Real estate which is one of the most illiquid asset classes.Commercial Real Estate vs Mutual Funds and Stocks

Returns from stocks and mutual funds are subject to market movements, making it difficult for investors to clearly understand how much they will earn. Although returns from the stock market can be higher, when it comes with a high risk of losses. Furthermore, commercial real estate investments are much less volatile. 

Commercial Real Estate vs Bonds 

 Bonds are a great source of passive income, while commericial real estate is also a good source of passive income but requires higher investment. These are highly illiquid and have higher credit risk.The table given below provides a detailed comparison between these investment options: 

Are you looking to invest in bonds that generate higher returns at low risk? Then, register here and start investing without delay. 

Steps to Invest in Commercial Real Estate in Solapur 

Here is a step-by-step guide to investing in commercial real estate in Solapur: 

Step 1: Decide on your budget and conduct market research about the potential sites in Solapur that would witness a price increase in the coming days. 

Step 2: Make a list of the sites that match your budget and visit the places to analyse the ground situation. 

Step 3: Choose the commercial property that suits your investment goals and budget.heck the official documents required to transfer the property to your name, such as the title deed, foundation certificate, and property assessment extract. 

Step 4: Complete the registration and stamp duty formalities and transfer the commercial property to your name. 

Step 5: Pay the brokers and real estate consultants if you have availed their services. Finally, consider purchasing an appropriate insurance policy for financial protection. 

Final Word

Solapur is an emerging Tier II city in southern Maharashtra, and it is gradually emerging as an economic hub. With rapid infrastructural development and the building of an IT hub in Solapur, commercial real estate investments have the potential to generate high returns in the city. 

Frequently Asked Questions