4

Vesu

It is a peripheral locality in Surat with great connectivity with localities like Sachin and Udhna. ONGC Nagar and a few essential industrial localities are in close proximity to this area. This area has great civic infrastructure and social amenities. 

This area has several retail stores and commercial centres, making it a prime location for commercial real estate investment. Rate of commercial real estate may range around ₹8000 per square foot.Things to Consider Before Buying a Commercial Property in Surat

Here are some things that you might want to keep in mind before opting for a commercial property in Surat:

• Location & Neighbourhood

Before opting for a property, you must consider certain factors like ease of accessibility, amenities, infrastructural development and any chances of future development such as metro rails, flyovers etc. You should opt for a locality in a premium location to increase your chances of generating high returns.

• Check Authenticity Through RERA

You should ensure that the property you are opting for adheres to RERA norms. Real Estate Regulatory Authority (RERA) is a statutory body that was formed after the enactment of Real Estate Regulation Authority Act of 2016. This body works to maintain transparency and accountability in the real estate sector. By visiting the RERA website of Gujarat, you will be able to check the authenticity of the property as well as the builder.

• Analyse Lease Structure

This is a crucial factor in commercial property investment. It is a long-term contract between the owner of the commercial plot and its occupier. As a commercial real estate investor, you should fully understand the lease structure as well as the risks related to it. 

• Value Assessment

Do market research to check the valuation of similar properties in the vicinity. Collect all such information along with the amount of rent charged so that you have the proof to negotiate properly with the seller. 

• Quality of Tenants

If you rent your property to a reputed company, chances are high that they will pay a higher deposit amount, clear their rent on time and boost the property’s value. Therefore, choose your tenants wisely.

Stamp Duty in Surat

Stamp duty is an integral part of the transaction process pertaining to land or property purchase. Here are the stamp duty rates applicable in Surat:

Paying the registration charges is mandatory when it comes to registering the property in your name. Registration charges differ from state to state. Mentioned below are rates of registration that property owners need to pay in Surat:

With businesses across different sectors expanding in Surat, there has been a rapid increase in the growth of startups and commercial markets since 2021. According to recent data, registration for new commercial projects in Gujarat has risen by 24%, with the total number of projects standing at 213 in 2021-22 in comparison to 171 in 2020-21. 

Out of this, 60 of them were registered in Surat alone. Out of ₹5010 crore investments in commercial real estate across Gujarat, the lion’s share of ₹1844 got invested in Surat. Therefore, it is inevitable that Surat will stand out as one of the prime locations for investing in commercial real estate in Gujarat in the upcoming years. Commercial Real Estate vs Other Asset Classes

Following is the comparison between returns earned from commercial real estate versus other asset classes:

Commercial Real Estate vs Residential Real Estate

When compared to residential properties, investing in commercial real estate will offer you higher rental income and longer lease tenure. However, commercial investment incurs more significant risks as a decline in market conditions may drastically affect the returns.

Commercial Real Estate vs Mutual Funds & Stocks

Although stocks & mutual funds are considered to be riskier in comparison to commercial real estate, they offer inflation-beating returns over the long term. Initial investment amount is also huge for commercial real estate, whereas mutual funds require nominal investments.

Commercial Real Estate vs Bonds

Bonds and commercial real estate are popular sources of passive income. However, unlike bonds, commercial real estate is highly illiquid. This is because the prices of commercial properties are relatively high, and it takes time to find appropriate buyers or tenants.

Commercial Real Estate vs Gold

Investment in commercial real estate  promises to bring in higher ROI than gold. However, gold has less market volatility and can be considered a safe investment. Also, in general real estate investments are illiquid in nature, which is not the case with gold.

Following is a tabular representation of comparison of assets on the basis of volatility, liquidity, risk, returns and ticket size:

If you are planning to purchase bonds, you can explore our website. Here, you can choose from some of the high-rated bonds  currently available.  So, register now and start investing in debt securities to enjoy stable returns!

Steps to Invest in Commercial Real Estate in Surat

Following are the steps that you can follow to start investing in commercial real estate in Surat:

• Step 1: Understand the purpose of your investment and choose the type of commercial property you wish to invest in. Additionally, you are required to set a budget for your investment. 
• Step 2: Check out different commercial locations in Surat that suit your investment goals. 
• Step 3: Make a list of these locations. It is ideal to visit these places to understand whether they will serve your purpose. 
• Step 4: Zero down on one location and check whether all property documents are valid. You should also check whether the property adheres to the norms of RERA Gujarat. You can also get in touch with CREDAI if you come across some discrepancies. 
• Step 5: Take the help of a lawyer and prepare all necessary documents. Pay stamp duty and registration fees as applicable. 
• Step 6: After completing the purchase, consider opting for property insurance to safeguard yourself from any financial losses in case of any damage to your property