Manufacturers and IT industries play a pivotal role in boosting Chandigarh’s economy. This city’s industrial belt stretches over an area of approximately 1262.14 acres approximately. This belt is divided into two plots- Phase 1 and Phase 2. This city is a fully developed area with 1966 plots dedicated to industrial development.

Its economic development and infrastructure make Chandigarh one of the most expensive real estate markets. As such, investments in commercial real estate can be quite lucrative.

Top Reasons to Invest in Chandigarh Real Estate

Here are a few reasons for you to consider investing in commercial real estate in Chandigarh:

• Transportation

Wide and well-maintained roads cover the city of Chandigarh, offering easy transportation to everyone here. Expressways like NH 5, NH 152, and NH 7 connect Chandigarh to other main cities of Punjab and neighboring  states. 

Furthermore, the Chandigarh Junction offers excellent rail connectivity to other regions of India. 

• Booming IT hub

Owing to overpopulation in neighboring  cities, major information and technologies are shifting to Chandigarh. This enhances employment opportunities in this region.

Chandigarh Administration has set up the Society for Promotion of IT in Chandigarh (SPIC) to attract more IT sectors to this city. Therefore, there will always be a demand for urban office spaces in Chandigarh to fit the needs of these big and small companies. 

• A Clean City

All public properties in Chandigarh, including buses, bus stops, roads, and parks, are clean and well-maintained. As the earliest fully-structured city, all localities here are designed systematically. 

Purchasing commercial properties here, like office spaces or plots for resorts, will help you earn a substantial return on investments. 

Also Read: Guide for New Chandigarh Commercial Real Estate Investment

Commercial Real Estates Opportunities to Invest in Chandigarh

Here are some locations in Chandigarh you may consider while investing in commercial properties in this region:

• Zirakpur

Zirakpur is a small town situated near the Chandigarh-Ambala highway. You can also access Zirakpur via the Patiala-Shimla highway. This satellite town of Chandigarh opens up opportunities to earn high revenues through commercial real estate investments. 

Zirakpur houses well-maintained office spaces and properties for retail stores. Orbit Signature Walk and Motia’z Royal Business Park are prominent office spaces here. Similar business parks and mall projects are being developed, promising an urban office-culture outlook. 

The rent for commercial properties in Zirakpur ranges from approximately ₹31 lakh – ₹1.45 crore. 

• New Chandigarh

New Chandigarh stands out as Punjab’s first smart city. It houses many residential complexes, business parks for upcoming IT companies, and parks and lakes to attract tourists. 

A Singapore-based company has laid down the master plan to redesign New Chandigarh. This city strikes a balance between nature and urban infrastructure. Therefore, it is also famous as Eco City. 

The price for commercial properties in New Chandigarh ranges from ₹41 lakh to ₹4 crore approximately. This means that there are chances for high ROI from commercial properties in New Chandigarh.

Things to Consider before Buying Commercial Property in Chandigarh

Here are some points you need to consider before investing in commercial real estate in Chandigarh:

• Location and Connectivity

Before investing in a plot or property, consider researching its location and proximity to railway stations and airports. Location plays a major role in determining a property’s value among tenants. 

For instance, properties near educational institutions can work as prominent hostels or co-living spaces for students.

• RERA Authentication

The Real Estate Regularity Authority (RERA) Act 2016 monitors discipline and transparency in the real estate business. It mandates the formation of RERA authorities in every state to overlook transactions that happen here.

Every builder or broker in Chandigarh should register their properties under the RERA portal on Punjab’s official website. You can verify the authenticity of your shortlisted properties in Chandigarh there. 

• Builder

If you are planning to invest in an under-construction building, consider researching the builder’s past works and records of successful projects. Also, remember to cross-verify the data provided by the builder by contacting previous investors. 

• Lease Structure

A lease is a legal document that binds investors and builders under specific clauses. As investors, you need to have an elaborate idea of a lease structure. This will safeguard you from the risks of unforeseen situations. Also, having a clear idea of the lease document reduces the chance of the opposite party exploiting you with any loophole in its clause. 

Consider seeking help from a legal advisor to understand the lease structure before investing. 

Stamp Duty in Chandigarh

The table below displays stamp duty charges applicable to properties in Chandigarh:

Registration Fees in Chandigarh

Here are the registration charges for commercial real estate in Chandigarh

Also Read: Guide for Commercial Real Estate Investment

Chandigarh Commercial Real Estate- What’s the Forecast?

Chandigarh hosts manufacturing industries of auto and tractor parts, paper, sanitary fittings, steel fabrications etc. It is also growing as an IT hub. Taurus Agile, Wipro, Infosys, Erricson, Tech Mahindra and Reliance Communications are some of the IT companies that have set up their offices here.

After Phases 1 and 2, Chandigarh Complex Development Plan is taking the initiative to set up industrial zone Phase 3. This will open gates for more industrial development in Chandigarh. Furthermore, the strategic location of these industrial and business parks near National Highways offers scope to attract more investors to this city. 

New Chandigarh offers an uninterrupted power supply and many other facilities to support an elegant lifestyle. Moreover, the requirement for office spaces and retail stores offers endless scope for investment in this region. 

Commercial Real estate vs Other Assets

Given below are the differences between commercial real estate and other assets based on ROI. 

Commercial Real Estate vs Gold

Commercial real estate can earn a higher return on investments than gold. However, buying and selling gold is more accessible than commercial properties. Also, gold is a more liquid asset than commercial properties.

Commercial real estate vs Stocks and Mutual Funds

The stock market is highly volatile, and investors must understand this marketplace before investing. Here, investors can gain high returns if they can take high risks of losses. Whereas investing in commercial real estate in Chandigarh promises stable returns over time.

Commercial Real Estate vs Residential Real Estate

Commercial properties are more expensive than residential real estate, so the former yields higher returns on investment. However, finding tenants for commercial property is time-consuming. Also, investors are at higher credit risk with commercial properties than with residential real estate.  

Commercial Real Estate vs Bonds

Bonds have a more liquid market than commercial real estate. However, both are excellent sources of passive income. Bonds do carry lower risks compared to real estate investments.

The table below depicts the different asset classes based on their liquidity, volatility, ticket price, and risks.

Explore our homepage to find top-rated bonds trending in the market. Register now to invest with no hidden or additional charges. 

Steps to Invest in Commercial Real Estate in Chandigarh

Here are the steps an investor must follow to invest in commercial real estate in Chandigarh:

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

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

Step 3: Shortlist a few commercial properties that fit your budget.

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

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

Step 6: Check the authenticity of documents like Title Deed, Foundation Certificate, and Property Assessment Extract provided by the seller.

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

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

Step 9:  Cover your newly purchased property with an insurance plan. This will safeguard you from any major financial loss in case of any damage to your property.

Final Word

Chandigarh’s strategic design, environmental preservation and industrial growth have helped it achieve world-class status. This attracts several big and small industries to this city. Thus, investors will always have the scope to benefit from commercial real estate in Chandigarh. Before investing, investors should keep in mind to check the property’s location, age, registration and RERA compliance. 

Frequently Asked Questions

Why is it important to register my properties in RERA?

The Real Estate Regulatory Authority is set up to support transparency and uniformity in real estate industries. This body works to prevent fraud and project delays in real estate transactions. Every commercial and residential property owner must register their properties under the RERA portal of their respective states.

Is New Chandigarh a good place to invest in commercial real estate?

As a smart city, New Chandigarh is attracting several big and small firms to its heart. As a result, there is a growing demand for office spaces, banks, restaurants and hotels. Therefore, investors can invest in New Chandigarh to gain high ROI.

What is Stamp Duty?

Whenever an individual sells a property, he/she must pay a particular tax called the stamp duty. Section 3 of the Indian Stamp Act 1891 elaborately details stamp duty payable by property owners. Each state of India possesses different stamp duties. Therefore, a seller must pay this tax per the property’s location.

What are the prime areas in Chandigarh to invest in commercial properties?

New Chandigarh, Mullanpur, Zirakpur, VIP road and Dera Bassi are a few important areas for an individual to invest in commercial properties in Chandigarh.

Here is a comparative analysis of investment in real estate vs fixed deposits.

Fixed Deposits

Fixed deposits are financial instruments that generally offer a higher rate of interest than a regular savings account. In an FD, money is locked-in for a fixed timeframe, and a fixed rate of interest is given on the sum invested. Banks offer a high rate of interest because of the low liquidity and lock-in period involved in an FD.

However, a comparatively newer instrument called Flexi-FD allows people to go for the interest rate of an FD and liquidity of a savings account.

The general rate of interest on an FD in India is in the range of 4 to 7 percent in public sector banks. Some private sector and foreign banks give a higher interest rate of up to eight percent per annum. The duration of an FD varies anywhere from seven days to 10 years.

A regular interest flow from an FD is better than an investment in equity and a mutual fund for many as it assures a regular and fixed rate of interest. However, the interest received from FDs is taxable under the law.

Taxability of FDs

If the interest paid to a customer in a financial year exceeds Rs 10,000, the bank levies a tax of 10 percent on the interest amount. It is known as Tax Deducted at Source (TDS). However, the tax is actually applied according to the income tax slab of the FD holder.

Though FDs provide a stable interest rate on the sum deposited with the bank, it depends on the risk appetite and the financial goals of a person. Let us have a look at the potential of investment and returns from the real estate sector.

Real estate as an investment option

Real estate investment in India remains a compelling choice, supported by the sector’s resilience and potential for long-term growth. Despite the COVID-related market fluctuations, the industry is showing signs of recovery. It is driven by factors like urbanisation, rising disposable incomes, and a growing middle-class population.

Government initiatives, including regulatory reforms like Real Estate Regulatory Authority (RERA), have enhanced transparency and stability in the market. The recent uptick in residential property prices in key cities signals a renewed demand and confidence in the sector.

Real estate offers the dual benefits of potential capital appreciation and steady rental income, making it an appealing option for long-term wealth creation. The diversification benefits it adds to an investment portfolio help balance overall risk. With India’s ongoing urban development and growing economy, the long-term outlook for real estate investment remains positive.

If you intend to invest in the real estate sector, the points to remember are –

• A relatively larger sum of money is required to buy a property or a piece of land than an FD investment
• Besides the cost of the land or apartment, expenses like stamp duty, registration charges and maintenance charges exacerbate the total cost
• The appreciation in the prices may not be on the expected lines, especially in times of a general slowdown in the economy
• You must get the property evaluated in accordance with the market rates before making the investment
• Other factors like locality, connectivity, and infrastructure, among others, also play a decisive role in the price appreciation of the property.
• A commercial or rental investment can generate income for you
• Sometimes, the rental income generated is a mere 2-3 percent
• You cannot sell off a property quickly as it involves huge corpus of money

Choosing between real estate and fixed deposit

Let us understand with an example. To buy a land/apartment worth Rs 1 crore, you must scoop out an EMI of Rs 1 lakh a month for the next ten years. For that, you must earn Rs 2-3 lakh per month. This amounts to a significant financial planning and high earning potential.

However, in the case of opening an FD, you do not need a huge chunk of money. It can be done with an amount as low as Rs 20,000. Moreover, FDs come with a stable rate of return.

Sharing her views on the investment potential of both the investment instruments, Indu Tanwar, Senior Manager, Andhra Bank, says, “Traditionally, people with less risk potential tended to choose FDs over everything else. With the introduction of ‘Flexi FDs’, people reap the benefits of both FDs and savings account at the same time. On the other hand, due to dismal real estate market conditions, people hesitate to invest in real estate after a certain limit. Slow growth and presence of many fringe factors push people away from the property sector. FDs, however, provide a steady interest in income and suits almost every income group.”

Importance of understanding liquidity and investment time horizon

When considering investments in real estate versus fixed deposits (FDs), understanding the concepts of liquidity and investment time horizon is crucial. These factors play a significant role in determining the suitability of an investment choice based on an individual’s financial goals and needs.

Liquidity considerations

Real estate: Real estate investments are generally less liquid compared to other asset classes. Liquidity refers to how quickly and easily an asset can be converted into cash without significantly affecting its market price. Selling property can be a time-consuming process, often taking several months or even years, depending on market conditions. This lack of immediate liquidity makes real estate a less ideal option for investors who may need quick access to their funds.

Fixed deposits: FDs, on the other hand, offer higher liquidity. Although they are time-bound, most banks and financial institutions allow for premature withdrawal of fixed deposits, albeit with some penalty. This feature makes FDs more suitable for investors who might require funds on short notice or prefer the flexibility of accessing their money without significant delays.

Investment time horizon

The investment time horizon refers to the amount of time an investor expects to hold an investment before needing access to the capital.

Short-term horizon: For investors with a short-term horizon (a few months to a few years), FDs are more appropriate. They provide the security of capital and fixed returns over a predetermined period without the complexities and uncertainties of real estate transactions.

Long-term horizon: Real estate investments are typically more aligned with long-term financial goals. Over extended periods, real estate can offer substantial returns through property value appreciation and rental income. It’s suitable for investors who are not reliant on immediate liquidity and can afford to wait for the right market conditions to sell or lease their property.

In a nutshell, choosing between the two instruments can be a bit tricky. If the investment, as well as the risk potential, is high, the investor can go for real estate investment. But, if low yet steady interest is desired, FDs are a better option.

More from Knowledge Centre-Property Blog

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With the fast industrial development of this city, its real estate industry is also booming at a rapid pace. In fact, the emerging real estate sector of Chandigarh has garnered the attention of several leading real estate brands recently. With these reputed new entrants, the home buyers interested in buying residential properties in Chandigarh now have multiple options to invest in. Following are the top builders who are currently ruling the real estate industry of Chandigarh:

1. Sushma Group

Sushma Group marked its presence in the real estate industry of Chandigarh right after its inception. The company is known for offering world-class housing options laden with state-of-the-art facilities in an affordable rate. So far, they have delivered 9 projects along with 4 ongoing projects that are in the process of completion. The projects offered by this company come with modern amenities like club, gym, amphitheatre, kids play area, etc. All the projects are completed within record time and the possession was given to their respective owners before the declared time.

Projects

• Sushma Infinium, Delhi National Highway, Zirakpur, Chandigarh
• Sushma Grande, Chandigarh
• Homework, Delhi National Highway, Zirakpur, Chandigarh
• Sushma Crescent, Gazipur, Zirakpur, Chandigarh
• Sushma Elite Cross, Gazipur, Zirakpur, Chandigarh

3. Omaxe Ltd.

With 31 years of experience under their belt, Omaxe Limited has established itself as one of the leading real estate builders in Chandigarh. Apart from Chandigarh, the company also has its wide presence in places like Lucknow, Ludhiana, and Greater Noida. Right from its initiation they have consistently maintained high quality standards, transparency, and on-time delivery. The projects offered by them feature innovative designs and excellent craftsmanship. They have taken up plenty of residential and commercial projects so far.

Projects

• Omaxe Cassia in Mullanpur, Chandigarh
• Omaxe Plots in Mullanpur, Chandigarh
• Celestia Royal Premier in Mullanpur, Chandigarh
• Omaxe R2 in Gomti Nagar Extension Road, Lucknow
• Omaxe Hazratganj in Gomti Nagar Extension Road, Lucknow

4. APS Group

APS Group was established in the year 2010 with an aim to provide the best residential setup to the customers at a very competitive rate. With successful completion of several prestigious projects within a quick time span they have marked a position for themselves in the emerging real estate sector of this city. Even though they operate from Gurgaon, they have their reach in Chandigarh as well. Their properties being scientifically-designed provide ample space for healthy living.

Projects

• Tricity Homes, Peer Muchalla in the NAC, Zirakpur, Chandigarh
• Platinum Towers, Sector -21, Panchkula, Chandigarh
• Panchkula Heights, Peer Muchalla in the NAC, Zirakpur, Chandigarh
• Highland Park Homes, Zirakpur, Chandigarh
• Highland Park, Patiala Road, Zirakpur, Chandigarh

5. Motia Group

Motia Group was established in 2005 with a vision and mission to provide excellent housing options to the residents of Chandigarh. Till date they have won more than 14 awards for their exceptional work. So far, they have delivered 15 projects which have garnered the attention of the buyers due to their architectural brilliance, excellent locations, and advanced technologies. They have their presence in both residential and commercial spaces of the real estate industry in Chandigarh.

Projects

• Motia Royal Citi, Zirakpur, Chandigarh
• Motia Blue Ridge, Zirakpur, Chandigarh
• Motia Heights, Zirakpur, Chandigarh
• Motia HUYS, Zirakpur, Chandigarh

6. Hermitage Infra

Hermitage Infra is one of the most renowned and trusted builders in Chandigarh. From the very beginning the company had been dedicatedly working to provide quality housing options to their customers. Till date they have delivered a number of residential projects on time without compromising on the quality. The projects not only offer all the basic amenities that are expected by the residents but are widely admired for their unique design and high quality.

Projects

• Hermitage Centralis, Zirakpur, Chandigarh
• Skywalk, Zirakpur, Chandigarh
• Savitry Heights, VIP Road, Zirakpur
• Hollywood Height -1, VIP Road, Zirakpur
• Hollywood Height -II, Near Whispering Willows, VIP Road, Zirakpur

7. ACME Builders

ACME Builders has been delivering high quality residential options to the citizens of Chandigarh since their initiation. Their main moto is to provide best quality housing properties with advanced amenities within an affordable range. ACME builds homes for all kinds of residential requirements and is admired for delivering the projects on time. They follow a unique architectural style which is a blend of contemporary and traditional designs making their projects appealing to both younger and older homebuyers.

Projects

• ACME Floors in Sector – 91, Mohali
• Eden Court, Near upcoming golf course in Mohali
• Emerald Court in Chandigarh

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