Guide for Tiruppur Commercial Real Estate Investment

Tiruppur is famous for being the knitwear capital of India. This city in Tamil Nadu hosts around 9,000 garment manufacturing industries employing around 6 lakh people. Furthermore, this city has thrived in this industry for the past three hundred years. 

According to Tiruppur’s Export Association (TEA), this city has earned a record ₹33,525 crore from the export of garments, accounting for 1.07% of the country’s total merchandise exports. Global Economic Research ranks Tiruppur as the sixth fastest-growing city in the world.

Read along to know about the benefits of investing in commercial real estate in Tiruppur. 

Top Reasons to Invest in Commercial Real Estate in Tiruppur

Here are a few reasons why you may consider investing in commercial real estate in Tiruppur:

• Established Textile Business

The city of Tiruppur thrives on the success of its textile industries. The garment industries here have buyers from more than 35 countries. As a result, this city gains attention from large-scale clothing brands like H&M and Ralph Lauren. 

Therefore, one can find innumerable investment opportunities in commercial real estate, like warehouses in Tiruppur.

• Source of Passive Income

As an industrial city, Tiruppur offers endless opportunities for investors to earn without going through the hassles of a nine-to-five job. Moreover, the growing demand for retail stores, offices and showrooms also offers scope to earn high returns easily. 

• Transportation

Moffusil bus services connect Tiruppur to all major cities in Tamil Nadu, Kerala, Andhra Pradesh and Karnataka. In addition, the Coimbatore Airport makes Tiruppur accessible from various other cities across India.

Commercial Real Estate Investment Opportunities in Tiruppur

Here are a few locations that you can consider for commercial real estate investments in Tiruppur:

• Udumalpet

Udumalaipet is a small town surrounded by Westernghats on three sides. This town in Tiruppur is famous for its spinning mills, agriculture and wind mills. National highways, State Highways and district roads connect Udumalpet with the main city of Tiruppur. NH-209 connects this town with Coimbatore and Dindigul. Commercial plots and shop spaces are always available to set up stores or industries in this area. Prices of properties here range approximately from ₹25 lakh to ₹3.5 crore.

• Palladam

The Palladam High-tech Weaving Plant is a major industrial attraction in this town. This city is also famous for broiler chicken production. Besides poultry, textile mills and windmills are other significant contributors to Palladam’s economy. 

This city is also the gateway to Coimbatore from the east and southeastern regions of Tamil Nadu. National Highway 81 connects Trichi, Chidambaram and Coimbatore to Palladam. 

Commercial plots available for sale in Palladam have prices ranging from ₹31 lakh to ₹3.95 crore.?

Things to Consider before Buying a Commercial Property in Tiruppur

Here are the specific points you should consider before investing in a commercial property in Tiruppur.

• Know the Layout Plan

As you browse for the perfect property to invest in it is always a good idea to check for the layout plan. Also, make sure the project of your choice has all the necessary permissions from the government and administrative bodies. This will help save you from investing in wrong or illegal properties. 

• Lease Structure

A lease is a legal document that binds brokers, builders, and property owners for a stipulated time. An investor must be well aware of the clauses present in a lease agreement.

With this knowledge, one can easily avoid any case of loopholes or risks in commercial property. Consider seeking assistance from a legal advisor to get a clear idea of the lease structure.

• Risk Assessment

An investor needs to be aware of the risks involved in investing in commercial real estate. This will help them judge their risk appetite according to their budget. Proper locality research is also beneficial to determine the future of that area and its profit potential. 

• RERA Verification

The Real Estate Regularity Authority Act 2016 mandates the formation of a statutory body Real Estate Regularity Authority (RERA), to maintain accountability and transparency. 

Every broker and builder in Tiruppur must register their properties under the RERA portal on the Tamil Nadu Government’s official website. You can check the details of your shortlisted property here before investing. 

Stamp Duty in Tiruppur

The table below provides stamp duty for selling commercial properties in Tiruppur.

Also Read: National Savings Certificate Online Application

Registration Charges in Tiruppur

Given below are the registration charges applicable on commercial properties in Tiruppur

Also Read: Guide for Chandigarh Commercial Real Estate Investment

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

Tiruppur is a dominant player in the market of knitted garment industries. This city produces and exports a large number of cotton apparel not just in India but worldwide.  Large fashion retail brands like Polo Ralph Lauren, H&M, Diesel, Nike, Fila, Reebok, Hilfiger and many others import their products from textile plants in Tiruppur. 

Reports say that Tiruppur alone contributes to 90% of cotton knitwear exports from India. Some large-scale textile industries located here are Nethaji Apparel Park, SIDCO Industrial Estate, and Thiruppur Export Knitwear Industrial Complex. Besides the textile industry, Tiruppur is also famous for manufacturing brass, aluminium, and copper utensils for hotels and household needs. 

As the 6^th fastest growing city, Tiruppur’s economy is slated to grow by approximately 8.36% by 2035. These factors pave the way for lucrative investment opportunities in commercial real estate in Tiruppur.

Commercial Real Estate vs Other Asset Classes

Following are the points of differences between commercial properties and other asset classes:

Commercial Real Estate vs Gold

As buying and selling gold is easy, gold investments offer higher liquidity than commercial properties. However, investing in commercial properties can earn higher returns than gold. 

Commercial Real Estate vs Bonds

Bonds have a more liquid market than commercial real estate. However, both bonds and commercial properties are good passive income sources. 

Commercial Real Estate vs Stocks and Mutual Funds

Investing in commercial properties in Tiruppur promises more stable and low-risk returns than stocks. As the stock market is volatile, investors need to have comprehensive knowledge of stocks and mutual funds.

Commercial Real Estate vs Residential Real Estate

Commercial properties are more expensive than residential ones. However, they yield high ROI than residential properties. 

The table below demonstrates a comparative study of assets based on their volatility, liquidity, ticket price, and risks.

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Steps to Invest in Commercial Real Estate in Tiruppur

Here are the steps investors should follow while investing in commercial real estate in Tiruppur:

Step 1: Finalise your budget to invest in commercial properties in Tiruppur.

Step 2: Conduct thorough research on potential locations and know about their opportunities to flourish in future.

Step 3: Shortlist a few commercial properties suiting your budget.

Step 4: Opt for on-site research to closely analyse the property, the area and the locality. Consider seeking help from a real estate advisor to understand the prospects in an area.

Step 5: Finalise a commercial plot or property that suits your budget and investment goals.

Step 6: Check documents like Title Deed, Foundation Certificate, and Property Assessment Extract.

Step 7: Complete the formalities regarding stamp duty and registration charges to transfer the property under your name.

Step 8: Pay service fees to brokers or real estate consultants for availing their services.

Step 9: Cover your newly purchased property with an insurance plan. 

Also Read: Guide for Srinagar Commercial Real Estate Investment

Final Word

One can find endless opportunities for businesses in Tiruppur, and investing in commercial real estate is one of them. Owing to its rapidly growing economy and its famous textile industries, this city grabs the attention of major companies. A lot of local and indigenous industries are set up here to contribute to Tiruppur’s employment. 

Frequently Asked Questions