Guide for Yamunanagar Commercial Real Estate Investment
The city of Yamunanagar in Haryana is known for its plywood and paper industries. It also provides timber for large industries. This city has two railway stations – one is Yamunanagar-Jagadhri railway station, and the other is Jagadhri Workshop station. Yamunanagar is well-connected to other parts of Haryana, like Panipat and Ambala, and Delhi as well.
Notably, Reliance Infrastructure has installed Deenbandhu Chhotu Ram Thermal Power Station in Yamunanagar, which has increased the city’s business prospects. Let us understand how investing in commercial properties in Yamunanagar might provide great returns on investment.
Top Reasons to Invest in Yamunanagar Real Estate
Here are some reasons why you would want to invest in real estate in Yamunanagar:
- Industries
This city is well known for its industries. Despite being an isolated location within the state, Yamunanagar is extending geographically due to its expanding industries. The city produces paper machinery, sugar machinery and equipment for petrochemical plants. Other industries present here are of heavy metals, utensils and plywood.
- Tourism
This city is located in the base of Shivalik Hills and is a moderately developed tourism industry. Chaneti Buddhist Stupa and Kalesar National Park are some of the notable tourist destinations here. Therefore, investing in commercial real estate, like retail spaces and hotels, might be quite profitable in Yamunanagar.
Commercial Real Estate Investment Opportunities in Yamunanagar
Here are some of the localities in Yamunanagar which are suitable for commercial real estate investment:
- Yamuna Nagar Jagadhari Road
It is the commercial hub of Yamunanagar. There are a large number of commercial properties like office spaces and industrial lands available in this location. It is a traffic-free area and well-connected to the city of Jagadhari and the states of Himachal Pradesh and Chandigarh. Price of commercial property in this locality may range around ₹3 crore.
- Joria
It is a village but has a number of commercial properties ready to be sold. Joria is in proximity to markets, railway stations and highways. Many shopping complexes, petrol pumps, godowns and showrooms are in the vicinity. The price of commercial property here may range around ₹5 crore.
Also Read: Guide for Amarnath Commercial Real Estate Investment
Things To Consider Before Buying a Commercial Property in Yamunanagar
Here are some points that you should keep in mind before opting for a commercial property in Yamunanagar:
- Market Research
Before you start the process of buying a commercial property in Yamunanagar, you need to spend some time analysing the market trends. You should know about the future development of the project. Investing in a developing area might provide you with higher returns in comparison to developed areas.
- RERA Authentication
Before opting for a property, it is vital for you to check the authenticity of both the property and the builder. You can do so in the case of Yamunanagar by visiting the RERA Haryana website.
RERA, or the Real Estate Regulatory Authority, is a statutory body that promotes transparency and accountability in India’s real estate sector. It came into force after the enactment of Real Estate Regulatory Authority Act of 2016.
Stamp Duty in Yamunanagar
Stamp duty charges in urban areas of Haryana are higher. To promote women homebuyers, Haryana government has kept the rate of stamp duty lower for females. The rates are as follows:
Category | Stamp Duty Rates (Urban) | Stamp duty Rates (Rural) |
Male | 7% | 5% |
Female | 5% | 3% |
Joint buyers (Male + Female) | 6% | 4% |
Joint buyers (Male + Male) | 7% | 5% |
Joint buyers (Female + Female) | 5% | 3% |
Registration Charges in Yamunanagar, Haryana
The rate of registration charges in Haryana differs depending on the value of property. Here are the rates of registration charges applicable in Yamunanagar, Haryana:
Property Value (in ₹) | Registration Charges (in ₹) |
Up to 50,000 | 100 |
50,000 to 1 lakh | 500 |
1-5 lakh | 1,000 |
5-10 lakh | 5,000 |
10-20 lakh | 10,000 |
20-25 lakh | 12,500 |
25-30 lakh | 15,000 |
30-40 lakh | 20,000 |
40-50 lakh | 25,000 |
50-60 lakh | 30,000 |
60-70 lakh | 35,000 |
70-80 lakh | 40,000 |
80-90 lakh | 45,000 |
Above 90 lakh | 50,000 |
Yamunanagar Commercial Real Estate Sector: What’s the Forecast?
Haryana is one of the fastest developing states in the country. The state’s urban population has grown at an average rate of 4.42% per annum over the last 10 years. It is a land of opportunities for entrepreneurs.
Yamunanagar in particular is home to the biggest sugar mill in Asia and India’s largest railway carriage and wagon repair workshop. This promotes ample investment opportunities in the city. With stringent RERA regulations in place, you can be assured about not having to face any fraudulent activity when investing in commercial real estate in Yamunanagar.
Commercial Real Estate vs Other Asset Classes
Let’s compare commercial real estate and other asset classes based on various parameters:
Commercial Real Estate vs Gold
Gold is much riskier in comparison to real estate. This is because it might get stolen and the prices fluctuate based on global market sentiments. On the other hand, real estate investments offer the opportunity to earn passive rental income.
Commercial Real Estate vs Residential Real estate
Commercial real estate is much more secure in comparison to residential real estate as the lease agreement is for a longer term. In terms of returns as well, commercial real estate has the upper hand because the tenants are usually businesses and companies.
Commercial Real Estate vs Stocks & Mutual Funds
Stocks and mutual funds offer much higher returns when compared to real estate. However, stock and mutual fund investments are highly risky because the returns depend on market performance.
Commercial Real Estate vs Bonds
Real estate offers much higher returns in comparison to bonds, but bonds are considered to be a more stable and secure investment option. Moreover, bonds have more liquidity than real estate investments because the latter requires a high transaction amount for liquidity.
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Following is a comparison between different types of assets on the basis of returns, liquidity, risk, 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 Yamunanagar
Here are the steps that you can follow to invest in commercial real estate in Yamunanagar:
Step 1: Decide your investment budget.
Step 2: Research and select a few commercial properties that have a high return on investment potential.
Step 3: After shortlisting a few sites, visit each of them to assess them in terms of infrastructure, connectivity, amenities, etc.
Step 4: After selecting a property as per your requirements, prepare the required documents such as title deed, property assessment extract, building plan, etc.
Step 5: Complete the payment process. Make sure to pay the applicable stamp duty and registration charges to transfer the ownership of the property to your name.
Read More: Guide for Rewa Commercial Real Estate Investment
Final Word
Owing to its sugar mills, railway workshops, thermal power station and proximity to other major cities of Haryana, Yamunanagar might be the perfect location for commercial real estate investments.
One point you should remember while investing in commercial real estate is that the property will be prone to damage. Therefore, it might be a wise decision to opt for an insurance policy for your property so that you do not have to think about your finances if there is any damage to your property in the future.
Frequently Asked Questions
Q1. Are there any tax incentives on stamp duty payments?
Ans. Stamp duty is a tax paid for legal recognition of a property. You can get a tax benefit of up to ₹1.5 lakh on your payment of stamp duty and registration charges for a new property purchase. However, it is applicable for a single self-occupied property.
Q2. How can a broker help with buying a commercial property?
Ans. A broker will know how to search for the best properties by filtering them through various amenities and prerequisites as per your requirements. He/she might help you to choose the best property by directing you on different elements and sorting out the paperwork.
Q3. What documents should be checked before buying a commercial property?
Ans. Before purchasing a commercial property, you should check the sale deed, possession certificate, completion certificate, building approval plan, tax payment receipt and encumbrance certificate.