Residential Real Estate Investment in Aligarh

Aligarh is a city in the Indian state of Uttar Pradesh. It is an agricultural trade centre and an important business centre of Uttar Pradesh. Hence, we can say the occupation of the people in this city is based on agriculture, which is also the main reason for their residence. Moreover, it has a notable education system with well-known schools and colleges. All these have created a huge impact on the residential real estate demand in Aligarh.

Let us know everything about it in detail!

Top Reasons to Invest in Residential Real Estate in Aligarh

The top reasons to invest in the residential real estate of Aligarh, Uttar Pradesh are as follows:

1. Connectivity

Aligarh not only shares great connectivity through roadways and railways but also through highways like NH 91, 93 and Yamuna Expressway. Moreover, it is only 140 km from the Indira Gandhi International Airport, which is situated in Delhi. 

2. Occupation

Being an agricultural trade centre, the residents are involved with agricultural-based sectors, which has created a demand for residential spaces in this city. Moreover, it also has manufacturers and suppliers of brass, locks, bronze, etc., which again generates employment and increases residential space demand.

Residential Real Estate Investment Opportunities in Aligarh

The locations offering the best opportunities for residential real estate investment in Aligarh, Uttar Pradesh, are as follows:

1. Tappal

Investing in residential real estate in Tappal is ideal due to the upcoming infrastructural changes to airports, highways, etc., which have been planned by the state government. Moreover, the area is near some of the best hospitals in Aligarh, serving quick accessibility during emergencies.

2. Sasni Gate

Sasni Gate is a place serving great connectivity to many important places of Aligarh through roads and highways like GT Road and Yamuna Expressway. It has basic amenities like 24×7 electricity and clean water, creating heavy demand among residents. 

Things to Consider Before Buying a Residential Property in Aligarh

The primary things to consider before purchasing a residential real estate property in Aligarh, Uttar Pradesh, are as follows:

1. RERA Verification

The Real Estate Regulatory Authority (RERA) is a statutory body promoting transparent and authentic real estate business between buyers and agents after it was notified by the RERA Act 2016. You can check the authenticity of a property and its builder in Aligarh by visiting the RERA website of Uttar Pradesh.

2. Lease Structure

A lease is a legal contract between a residential space owner and occupier to identify any risk involvement. It must be comprehended by both the tenant and landlord because it contains important information on rent and ownership rights. 

Stamp Duty Rates in Aligarh, Uttar Pradesh

The stamp duty rates for real estate property sales in Aligarh, Uttar Pradesh, are as follows:

Note: In some cases, women are offered a 1% reduction in stamp duty charges in Uttar Pradesh. This reduction is applicable only for a total transaction value of up to ₹10 lakh. 

Registration Charges in Aligarh, Uttar Pradesh

The list of registration charges for real estate property in Aligarh, Uttar Pradesh, is as follows:

It is very important to consider the rates of stamp duty and registration as they will be a part of your investment amount. 

Aligarh Residential Real Estate Sector: What’s the Forecast?

In the FY year 2022, a total of 8116 real estate units have been established all over the state of Uttar Pradesh, including Aligarh. Out of this, 6931 comes under residential area, and 1185 area comes under commercial real estate. The total estimated value of all these real estate projects has been calculated to be worth ₹3,648.35 crore and was simultaneously registered under UP RERA.

Moreover, the RERA authority of Uttar Pradesh received 125 applications for new project registrations in both commercial and residential during the first 6 months of FY 2022. On the contrary, in the PY 2021, it received around 100 applications during the same period. Among these applicants, 34% belong to NCR districts and 66% belong to non-NCR districts.

Residential Real Estate vs Other Asset Classes

The comparison between residential real estate and other asset classes is conducted below: 

• Residential Real Estate vs Stocks & Mutual Funds

Residential real estate offers assured returns with direct asset ownership of assets. Stock-oriented investments provide comparatively higher returns but witnesses great fluctuation with higher risks.

• Residential Real Estate vs Gold

Unlike gold, you can generate passive rental income from residential real estate investment. However, gold offers better liquidity options as it can easily be converted to liquid money, which is impossible with real estate.

• Residential Real Estate vs Commercial Real Estate

Residential real estate has higher rental prospects in comparison to commercial real estate. Moreover, housing spaces lack demand compared to commercial real estate, especially in the premium category.

• Residential Real Estate vs Bonds

Bonds have a low credit risk in comparison to residential real estate. Additionally, residential property investments are less liquid than bonds due to higher transaction costs and the long time it takes to find suitable property buyers.

A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:

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Steps to Invest in Residential Real Estate in Aligarh

The steps to invest in Residential real estate in Aligarh, Uttar Pradesh, are as follows:

Step 1: Do proper market research to estimate your investment budget.

Step 2: Shortlist a few affordable sites. You can also take the help of an agent to get the best deals.

Step 3: Plan a field visit to each location to examine each site precisely.

Step 4: Once you finalise a suitable residential property, prepare all the necessary documents like building plan, encumbrance certificate, title deed, sale agreement, etc. 

Step 5: Make the final payment and purchase the property. Make sure to complete stamp duty and registration formalities. 

Step 6: Pay service fees to real estate consultants and brokers if you availed their services.

Final Word 

The outlook of Aligarh for residential real estate is quite promising due to its growing economy, infrastructure and better connectivity. Moreover, the individuals living here have a great passion for their occupation, which makes Aligarh a prominent residential space. However, if you plan to invest here, conduct thorough market research or consult a real estate agent to be aware of any fraudulent activities.

Frequently Asked Questions

Q1. Is Aligarh a developed city?

Ans. Being a Tier II city of Uttar Pradesh, we can consider that Aligarh is indeed a much developed city. Moreover, it is an important business centre in Uttar Pradesh for locks, brass and bronze materials, etc., making it a prominent employment centre.  

Q2. What is the average real estate property price in Aligarh?

Ans. The average real estate property price in Aligarh is approximately ₹3500 to ₹4000 per square foot. However, property prices here start from around ₹180 to ₹200 per square foot, which in total can rise in crores depending on the plot size and location.

Q3. Is it possible to claim a refund on stamp duty and registration fees in Uttar Pradesh?

Ans. Yes, it is possible to claim a refund of stamp duty within a period of 6 months from payment. This is possible only in case of excess payment, and the refunded amount will undergo a 10% deduction from the total stamp duty charges paid. However, there is no refund on registration charges.

Q4. What type of commercial property is most profitable?Ans. Some of the most profitable commercial properties include office spaces, multifamily projects, student housing, mixed-use buildings and self-storage facilities. The reason is that these properties are capable of earning the highest return on investments with the highest number of tenants.