Best Areas of Nagpur for Commercial Construction

There are many reasons experts and industry heads are bullish about Nagpur. The geographical advantage of the city being situated almost in the middle of the country with road, rail, and air connections with east, west, north, and south is further boosted by MIHAN and fast track road connectivity with JNPT. This has placed Nagpur at the center of supply-chain revolution the country is striding towards

Apart from that, Nagpur has also emerged as an IT hub in recent years with all IT majors rushing for large office spaces in the city. This and other transformations that are making the city a major growth center have been accelerated by Mahametro, which has given the intra-city communication the required filip. 

All in all, the immense possibilities of Nagpur are unfolding and creating a high demand for commercial space. If you are scouting the city to find a good location for your next commercial project, it might prove to be effective to collect the comparative data for the areas and analyze them. Here are some choices and the corresponding data:

Location

Under construction sale rate / sq.ft. Lease out rate / sq. ft. Lease rent / sq.ft. / month ROI (in %)

Dharam Peth

7609 8181 42 6.3

Ram Das Peth

13333 13733 49 4.3

Dhantoli 

8000 8240 44

6.5

Pratap Nagar 7204 7916 26

4.0

Laxmi Nagar

8158 8965 28 3.8
Bajaj Nagar 10010 11000 82

9.0

Medical Square

19740 21000 100

5.7%

Shankar Nagar  11215 11931 24

2.5%

Sita Buldi

4200 4666 23 6.0
Hingna Road 2828 3142 18

7.0

Shivaji Nagar  6623 7121 20

3.4

Types of commercial constructions that provide maximum return

It is absolutely important to ensure that your commercial construction provides satisfactory return on investment. Following are some of the most profitable types of commercial constructions:

Properties that attract most number of tenants

Commercial properties with the most tenants directly result in the highest return on investment. Examples of such properties are RV parks, apartment complexes, student housing, office buildings, and storage facilities, etc. The higher the number of tenants on your property, the higher the income. Similarly, the stronger the demand for the property, the less likely you will have to locate new tenants on short notice. 

Properties in the growth locations

It is a thumb rule that buildings in high-traffic locations are more likely to attract new tenants and more tenants who are ready to extend their leases. On a larger scale, the same idea applies. You should select locations in the fast-growing suburbs and other promising places with good transport and power supply facilities for your commercial construction project.

Properties with triple net lease agreements

While the properties with the highest return on investment are usually those with the most tenants, a triple net property is an exception to the rule. Triple net properties usually have a single tenant with a long term lease agreement in which the tenant is liable to pay all the statutory expenses of the property, such as real estate taxes, maintenance, and insurance in addition to the rent amount. Triple net properties are ideal for new developers because it rids them from the responsibilities of paying the monthly dues, yet makes a regular inflow of the rent amount into their bank account.

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