Why make a commercial investment in Zirakpur?
Zirakpur is a satellite town near Chandigarh with an upwardly mobile population.
Due to it’s closeness to Chandigarh many town such as Zirakpur, Mohali and Panchkula have benefitted immensely.
Here are some facts about Chandigarh:
- It has been rated number 1 in terms of Human development Index
- It has also been rated as the wealthiest town in India
- Education hub for the entire region
- Hub for Medical facilities (3 big government hospitals and multiple private hospitals in the city)
- You can get more information on the city here
Now, Chandigarh is already developed both commercially and residentially so the satellite towns such as Zirakpur, Mohali and Kharar are exploding.
Zirakpur especially has had some major infrastructural upgradations although a lot is left to be desired.
It has grown and will continue to grow exponentially for the foreseeable future due to multiple reasons.
I have written a couple of blog posts that you may find useful:
- Is this the right time to invest in Mohali and Zirakpur?
- Three golden rules for investing in Zirakpur Real Estate
Who should invest in a commercial property in Zirakpur?
I believe your first investment should be a residential investment because of the sense of security and emotional fulfillment that it gives you.
Commercial investment should ideally be your second or third investment.
People who have extra money to invest and with a horizon of at least 4 to 5 years should look to invest in an under-construction commercial property in Zirakpur.
This is so because of two reasons:
- An under-construction property will give you capital appreciation
- Attractive returns and lease guarantee
For people looking to start their business immediately, a ready to move commercial property is suitable but that is more of a neccesity rather than an investment, I beleive.
If immediate rental returns is your expectation then a ready to move commercial investment is ideal.
Many people decide in favour of residential investment because it is considered a safer investment or because people find a commercial investment too complicated to understand.
Different people have different tastes and commercial investing can pay rich rewards if due diligence is done before investing.
Zirakpur-Hottest investment destination in the region
I recommend Airport road Zirakpur as a potential destination for your investment.
Chandigarh International Airport is just a 15 minutes drive from Zirakpur and keeping in mind the future growth potential of Chandigarh and the surroundings, this road is only going to get more attractive for commercial real estate.
I believe there are a few main criteria’s that decide the footfall and thus the attractiveness of a commercial property:
- A large residential population around the property
- Highway property with a lot of traffic footfall
- Infrastructure such as approach roads, parking, surroundings etc.
- Quality of other tenants
- A dedicated leasing team
- Compliances etc.
The properties that I am going to suggest in this blog fulfill all of the above mentioned points.
3 Questions to ask yourself before making a commercial investment in Zirakpur
What is the purpose of your investment?
Do you want to start a business yourself self or Do you want to rent out space? What sort of a business do you want to rent out to or open your self, What is an ideal location for this purpose?
What is your budget?
I believe commercial investment should only be done if you can spare the money comfortably and are not dependent on the loan.
A bank loan for a Commercial property is costlier than a residential home loan, do not offer tax incentives and have a lower loan to value ratio.
What are the other investment options and is commercial investment in zirakpur the right fit for you?
Is there another investment option that allows you to get good returns while creating an asset? Do you have the risk appetite for share market? Do you consider bank FD a good enough option?
Commercial investment does require some time and effort so can you spare that time? Do you have the patience to wait for a long time to get possession while getting consistent returns?
Pros of commercial investment in Zirakpur
1. Better returns on investment than residential investments
Commercial real estate offers better annual returns of approximately 8 to10 % as opposed to 3 to 5 % on residential real estate.
2. Quality of Tenants is better
The tenants in good commercial properties are corporates, business houses or retails chains who have long term contracts, timely payments and set standards for maintenance of your commercial property.
3. Furnishing costs are Nil
Bigger chains have set criteria’s as to how they want to get their interiors done so usually they prefer to do it themselves.
So you can handover the bare shell unit to the tenant and let them take care of the furnishings.
4. The Tenants take care of your property
In a commercial space, A tenant has to maintain the property because if they don’t it will affect their business. So the tenants usually take very good care of your property.
The interest of the tenant and the landlord is aligned in a commercial investment.
Cons of commercial investment in Zirakpur
- Tied to the economy
Commercial real estate investment is tied to the performance of the economy. If the economy is doing well you will do really well with your investment but if the economy is not doing well the demand for commercial real estate will go down and your returns may be impacted.
The downturn in the economy affects every industry and not just real estate but commercial real estate is among the first ones to be impacted.
2. The buying process is not easy to understand
Buying a commercial real estate requires sharp acumen and not everyone is able to understand the intricacies of a commercial real estate investment.
Commercial real estate scares many people because they do not understand it.
3. Costlier than residential property
Commercial real estate investments is generally considered costlier than residential real estate.
This is not always true because many commercial properties start with an investment of only Rupees 20 lakhs.
4. Builder does not keep his/her investment
There have been cases during the lockdown where in some builder in Zirakpur had stopped some return plans. It is important to understand that the reputation of the builder is very important in commercial investment.
Types of commercial investment in Zirakpur
There are multiple inventory options in commercial real estate investment in Zirakpur.
You can invest in:
- Retail Showrooms/Floors
- Anchor stores
- Office spaces
- Brewery spaces
- Auto Showrooms
- Fine dining restaurant spaces
- Food court kiosks
- Mini malls
- SOHO Suites
Top 5 Commercial projects in Zirakpur
I recommend the following projects for a commercial investment in Zirakpur
Sushma Downtown is a 60 acre integrated township that houses two big residential projects namely Sushma Belleza and Sushma Valencia and Two big commercial projects namely Sushma Empiria and Sushma Metropol.
Sushma downtown is constructed on GMADA approved land, free from all unorganized activities.
Township will have it’s own fire tender truck, Ambulances, shuttle service & patrolling vans etc.
This township is located on the Panchkula stretch of PR7 road and is characterized by a high catchment area.
Greater Mohali Area Development Authority (GMADA) is a state body that takes care of town and country planning and housing and urban development in areas such as Mohali, Zirakpur etc. You can get more information on GMADA here.
Sushma Downtown has two commercial projects namely:
Sushma Metropol and Sushma Empiria.
- Sushma Metropol
- Sushma Imperia
- Sushma Capital
- Sushma Pristine
- HLP Social Square
For a detailed discussion and a site visit, you can leave your details here and I can get in touch with you or you can call me on 6283060221.
For a real estate investment and especially a commercial investment you should enlist specialized help.
I work as an authorised channel partner with the major commercial real estate developers of the region.
I offer a price guarantee on all Sushma products and some select builders in the Zirakpur and the Mohali region.
This link explains why I can offer you the best price on commercial real estate in zirakpur: Price guarantee
How should I begin searching for the right commercial investment in Zirakpur?
Ask yourself the 3 questions I have mentioned above. If you still want to invest in a commercial property feel free to get in touch with me at 6283060221 and I can suggest some good options.
Should I make a commercial investment in Zirakpur or Mohali ?
See both options but Mohali commercial real estate is a little expensive than Zirakpur’s. The answer also depends on the type of unit you want to purchase.
Should I buy an under construction property or a ready to move commercial property in Zirakpur?
Depends on your investment goal, Bothe investments have their own share of pros and cons. Inventory in both types is available.
Is it the right time to invest in Zirakpur ?
I have written a blog about the same topic.
Which type of commercial property is right for me ?
Depends on your taste, budget and future plans. This question requires a detailed face to face discussion.
Can foreign citizens of Indian origin purchase commercial property in India?
Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers’ NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.