The Indian commercial real estate market is witnessing rapid growth, with the increase in demand for office and other commercial spaces owing to the growth in the Corporate, IT, and Automobile sectors. However, tracking down the best commercial property and buying them is a whole process by itself. This blog will discuss how to register commercial property. Read on!
Real estate is one of the largest sectors in India and contributes a significant percentage (6.5 to 7 per cent) to the country’s Gross Domestic Product (GDP). (Source). Being one of the safest and the most secure forms of investment, commercial real estate guarantees solid Returns on Investment (RoI). In addition to giving great returns, commercial real estate is also an investment avenue that lets you build equity pretty quickly while also offering excellent appreciation value and ensuring steady cash flow.
If you are looking to invest in commercial real estate and wondering how to register a commercial property, you have come to the right place. This article will talk about how to register commercial property in India and the major steps involved in the process. Keep reading!
Commercial Property Scenario In India
The commercial real estate sector in India is one of the most sought-after investment avenues in the country. There is a huge demand for commercial real estate. With the massive growth of various industries, including IT, Corporate, Automobile, and more, there is increased demand for factory and office spaces across the country. With many companies expanding and getting back to working out of office spaces, the commercial real estate sector is currently thriving in India.
Read Also: Commercial Real Estate Stats and Facts
DID YOU KNOW?
According to an Economic Times article, a JLL study suggests that the Grade A office market across the top 7 cities in India is expected to grow over 1 billion sq. ft. in size by 2026. The office sector in the country has been named to have recovered the fasted from the after-effects of the pandemic.
Chennai has also been a major contributor to the country’s real estate market. The city’s net absorption almost doubled on a quarter-on-quarter (Q.O.Q) basis to 0.53 million sq. ft. (MSF) in the first quarter of 2022. Cities that are top performers in the country’s commercial real estate sector include Delhi NCR, Bengaluru, Chennai, Hyderabad, Pune, and Mumbai.
If you are looking to purchase a commercial property in India, Market of India is one of the best places to make a commercial investment. Being the country’s upcoming largest wholesale and retail marketplaces, Market of India offers a great platform for your business, filled with growth potential. Before we discuss a little more about Market of India and what it offers to traders, let’s see how to register commercial property in India.
Things To Keep In Mind While Buying Commercial Property
Finding the right commercial property to invest in by itself is a complex and challenging task. Commercial real estate investment is not a walk in the park. It is a serious decision that must be taken with care and caution. Before you zero in on a commercial property to invest in, you need to consider a couple of factors, including –
– It is important to define your investment objective to determine the desired end result you expect out of the investment.
– You must do your research and follow the market conditions to know the various trends in the commercial real estate market.
– You must also weigh your financial status and set your budget. This will help you decide how much you will be able to shell out from your savings and how much loan you would need.
– There are different types of commercial properties you can invest in. You must consider the pros and cons of each property from an investment perspective and choose the one that best aligns with your investment goals.
– Consult your financial advisor and consider all your financing options before you invest.
– The location of the property is very important. Make sure you choose one in a prime commercial area where demand for commercial property is high.
– Ensure you choose a reputed builder to buy your property from.
– You must also check the documents required before you go ahead with the investment.
Read More about Things to Consider While Investing in Commercial Real Estate
Documents Required While Registering A Commercial Property
Purchasing a commercial property means doing a lot of paperwork for which you need to produce a couple of documents to fulfil the deed of buying the property. Ensure you have the following documents from your and the seller’s end at the time of property registration –
- Sale Deed
- Mother Deed
- Encumbrance Certificate
- Building approval plan
- Stamp duty
- Certificate of ownership, and more.
How To Register A Commercial Property In India
Once you are done considering the above-mentioned factors, you need to register the property in your name. This is when the transfer of ownership happens. Here’s how to register commercial property in India.
1. Find The Right Property
Finding the right property is the first step to getting anywhere close to registering a commercial property. To find the right property, you need to take do good research about your options, consider the location, the demand for commercial property in the location, the builder and their reputation, the price, and more.
2. Estimate The Property’s Value
Once you have zeroed in on a property you want to invest in, you must estimate the property’s value. This can be done based on the circle rate and the stamp duty that will be calculated based on the circle rate. The circle rate is the market rate set by the government. It is calculated on the property’s built-up area. The circle rate and stamp duty vary across the different states, and as the buyer, you have to abide by the rules and pay these dues.
3. Payment Of The Stamp Duty
The stamp duty is a kind of tax that is usually non-negotiable and paid in full. It is a legal document that is collected on the transfer of assets and property. Stamp duty, again, differs from one state to another and also from one property type to another.
4. Registration Of The Property With The Sub-Registrar
Once you are done estimating the value of the property and making the payment of the stamp duty, it is time for you to register the sale deed for the transfer of ownership. The buyer and the seller need to be present at the sub-registrar’s office, at the same time, in order to facilitate the transfer of ownership of the property. Both parties need to produce the necessary documents and identity proofs and sign various documents and agreements in order to register the property. Once the registration is done, you will have to produce the receipt for the payments after 15 to 20 days in order to collect the sale deed from the sub-registrar’s office.
We hope you have understood how to register commercial property. If you are looking to invest in commercial real estate, look no further than Market of India. As discussed earlier, Market of India is the country’s upcoming largest wholesale and retail marketplace that holds immense growth potential for your business. Read further to learn more about the benefits of buying commercial property from Market of India.
Buy A Commercial Property From The Market Of India
Market of India is India’s upcoming largest wholesale and retail marketplace in Chennai, India. Being situated in the heart of the city, Market of India is the extension of Chennai’s most important trade hubs, including Koyambedu, Parry’s Corner, Sowcarpet, Mint Street and Ritchie Street, Narayana Mudali Street, and more.
If you are a business person looking to invest in commercial spaces, here’s why you should consider Market of India –
- Market of India is forecasted to expect an estimate of 40,00,000 monthly footfalls.
- Market of India offers 20+ ancillary services that provide you with the marketing support your business needs to see growth.
- Take your business to the international market through Market of India’s Chamber of Commerce, which will give you ample opportunities to network with international traders and logistics partners.
- You can establish a strong digital foundation for your business with Market of India’s online marketplace that houses over 1,00,000 commodities.
- Market of India offers a wide range of commercial spaces, including office spaces, wholesale and retail spaces, and more, that are top-notch in quality!
Owning a shop and setting up a business within the premises of Market of India means growth by multi-folds for your business. Their marketing support, potential customer reach and trade opportunities are unbeatable. For more information, visit www.marketofindia.co.in. or call us 7550135333