Avadi is a small suburb of Chennai, located in the Thiruvallur district of Tamil Nadu. This area is mainly known for being the home to Heavy Vehicles Factory (HVF) and Ordnance Factory Board (ODF). It is evolving as a residential area for its proximity to a commercial hub with such factories, IT parks and manufacturing companies.
As per the report of the 2011 Census, Avadi currently has a population of 475,000, which shows that the area is gaining popularity as a residential area. Moreover, it offers great connectivity and transport facilities through the EMU trains, and the Avadi railway station connects it across Chennai. There are also various educational institutes available here.
Read along for a comprehensive overview of the current residential real estate sector of Avadi.
Top Reasons to Invest in Residential Real Estate in Avadi
Here are a few reasons you should consider investing in the residential real estate sector of Avadi.
- Commercial Hub
Avadi houses multiple defence institutions and divisional offices, which makes it a commercial hub. Some of these are IAF Station, Combat Vehicles Research and Development Establishment (CVRDE), Indian Navy, Heavy Vehicles Factory (HVF), Central Reserve Police Force (CRPF), and others. It has a large IT park, known as Tidel Park, which is the home to many IT/ITES offices. Moreover, it is close to the Ambattur Industrial Estate.
- Transport & Connectivity
Avadi offers great transport facilities, which allows the residents to be connected to different parts of Chennai. Avadi railway station is an essential suburban terminal station, and multiple express and local trains run across Tamil Nadu. The Chennai–Tiruttani highway extension has also contributed to increasing the connectivity of this area. Avadi bus terminus also offers good transport options.
- Local Amenities
There are various local amenities. You will find multiple educational institutes here, such as Nabi Crescent Matriculation School, Holy Immanuel Matriculation School, Kendriya Vidyalaya, Veltech Multitech, SA Engineering College, etc. Moreover, there are various hospitals here, including Sri Sudharsanam Hospital and KC Multispeciality Hospital.
Usually, most areas of Tamil Nadu are experiencing a rise in real estate prices. However, despite its growth as a commercial hub, Avadi has successfully maintained attractive pricing. On average, its real estate properties cost about ₹ 3,830 per sq. ft. The living cost in this area is about ₹ 24,000 for a single resident. This makes it affordable for most people.
Residential Real Estate Investment Opportunities in Avadi
Various popular residential areas in Avadi offer a great investment opportunity. Here are some of them.
It is a residential suburb in Avadi with a blend of city and semi-urban environments. The transport facilities are good, with Avadi Railway Station and Paruthipattu bus stop. Nearby educational institutes include Vriksha Montessori School and Velammal Vidyalaya Avadi, and healthcare services are easily available through Meenakshi Hospital and Be Well Hospitals. You can find 2 BHK apartments here at ₹ 26.5 lakhs.
- Ananda Nagar
It is another popular residential area in Avadi, mainly known for its connectivity benefits. Its proximity to NH32 and NH36 connects it to different parts of Tamil Nadu. Avadi Railway Station and Govardanagiri bus stop are also nearby. Besides multiple hotels, restaurants and theatres, it houses educational institutes like SA Engineering College and Sri Venkateswara Middle School. A 2BHK apartment costs about ₹ 40 lakhs here.
Located on Chennai – Tiruttani Highway, this is another well-known residential area of Avadi. Its proximity to Tidel Park 3 and transport facilities has made it popular as a residential area. You will find schools like Holy Infant Jesus Matriculation Higher Secondary School and St Thomas Matric Higher Secondary school here. A 2BHK apartment starts from ₹ 26 lakhs in this area.
This is another popular residential area in Avadi. It is located close to Avadi railway station and bus depot, which helps to maintain good transport facilities. Moreover, it offers access to public healthcare with hospitals like Govt. Taluk Hospital and Urban Primary Health Centre. The nearest educational institutes include Vel RS Medical College, Nazareth Academy, etc. A 2 BHK apartment starts from ₹ 28 lakhs here.
Things to Consider Before Investing in a Residential Property in Avadi
Here are some of the things you must consider if you are planning to invest in the residential real estate properties of Avadi to avoid making a mistake.
- Local Environment
Avadi is rapidly urbanising and growing as a commercial hub. As a result, it might face issues of excessive traffic, especially during rush hours. Pollution is also common in the presence of multiple factories and industries. Living in such conditions can be dangerous. Thus, you need to choose a location carefully to avoid such issues.
Some parts of Avadi are still lacking proper infrastructure. These parts are still under development which can make it difficult to live peacefully. Thus, inspecting an area in detail is essential to avoid such a lack of infrastructure.
A lack of safety can be common in some areas of Avadi. Particularly, if the buildings are new, security staffing may be missing. Ensure your chosen property has proper security provisions, including security staff and CCTV cameras. Moreover, check whether the area has sufficient police protection.
- RERA Authentication
The Indian government has developed the Real Estate Regulatory Authority (RERA) as a platform for maintaining real estate transactions. It is a way to ensure transparent transactions between the sellers and buyers of properties. As per law, every buyer and property should be registered under RERA. Check the RERA website of Tamil Nadu to ensure that your chosen property is authentic.
Stamp Duty in Avadi
Here are the stamp duty charges you may have to pay while dealing with the real estate properties of Avadi.
|Category of Property Document||Stamp Duty Charges|
|Gift deed||7% on the property’s market value|
|Exchange deed||7% on the property’s market value|
|Conveyance or sale deed||7% on the property’s market value|
|Simple mortgage deed||1% on the loan value (maximum of ₹ 40,000)|
|Mortgage with possession||4% on the loan value|
|Sale agreement deed||₹ 20|
|Cancellation deed||₹ 50|
|Agreement for building construction||1% consideration made on an agreement or on construction value (whichever is highest)|
|Partition within family||1% of market value (maximum of ₹ 25,000 for each share)|
|Non-family partition||4% on property market value (for separated shares)|
|General power of attorney for selling immovable property||₹ 100|
|General power of attorney given to a family member for selling immovable property||₹ 100|
|Partnership deed when the capital is up to ₹ 500||₹ 50|
|General power of attorney for selling movable property||₹ 100|
|General power of attorney for consideration||4% on the consideration|
|Partnership deed in other cases||₹300|
Registration Charges in Avadi
Knowing the registration charges is also essential when investing in real estate. Here are the registration charges in Avadi.
|Category of Property Document||Registration Charges|
|Gift deed||4% on the market value of property|
|Exchange deed||4% on the market value of the greater-value property|
|Conveyance or sale deed||4% on the market value of property|
|Simple mortgage deed||1% on the loan value (maximum of ₹ 10,000)|
|Mortgage with possession||1% on the loan value (maximum of ₹ 20,000)|
|Sale agreement deed||1% on the advance amount|
|Cancellation deed||₹ 50|
|Agreement for building construction||1% on the market value (maximum of ₹ 4,000 for each share)|
|Partition within family||1% on the market value (maximum of ₹ 4,000 for each share)|
|Non-family partition||1% on the market value (for separated shares)|
|General power of attorney for selling immovable property||₹ 10,000|
|General power of attorney given to a family member for selling immovable property||₹ 1,000|
|Partnership deed when the capital is up to ₹ 500||1% of the capital invested|
|General power of attorney for selling movable property||₹ 50|
|General power of attorney for consideration||1% on consideration or ₹ 10,000 (whichever is higher)|
|Partnership deed in other cases||1% of the capital invested|
Avadi Residential Real Estate Sector – What’s the Forecast?
The residential real estate sector of Avadi is observing growth rapidly with its urbanisation and development of an IT hub. According to a recent report, Chennai is observing 8% annual growth in the real estate field. In the second quarter of 2022, Chennai had registrations for over 1,950 units in this field.
The property rates in Avadi have been increasing with its development as a commercial hub. Currently, the price ranges between ₹ 2,139 and ₹ 6,309. There are more than 69 upcoming residential projects in Avadi. More people are investing in its residential real estate properties because of its proximity to various IT and manufacturing companies.
Residential Real Estate Vs. Other Asset Classes
If you are hesitating to choose residential real estate as an investment option, here is its comparison with other asset classes to give a better overview.
- Residential Real Estate vs Stocks & Mutual Funds
Mutual funds have started generating popularity for being a favourable investment opportunity. It generates good ROI, giving growth to the income of the investor. The only problem is that these are highly volatile. The returns can fluctuate based on the changes in the environment. This is not a problem in case of residential real estate properties.
- Residential Real Estate vs Commercial Real Estate
As the name suggests, commercial real estate properties are used for commercial purposes. Tenants rent such properties to run their businesses. Such properties naturally generate more returns. However, it is much easier to find tenants for residential real estate properties. Moreover, residential properties offer better tax benefits.
- Residential Real Estate vs Bonds
The investment opportunities for bonds have been growing recently. These generate comparatively lower returns but are much safer options for investment. They are not volatile to market changes. Residential real estate properties create higher returns, but the risks are comparatively higher than bonds.
Are you looking for top-rated bonds that generate stable returns? Register here and start investing today.
- Residential Real Estate vs Gold
Gold is another popular investment option in India, as its price is rising rapidly. Almost every Indian household possesses gold jewellery items, which are saved as assets for the future. It is a great option for both long and short-term investments, and it is also easier to liquidate gold. The returns are, however, lower compared to residential real estate investment.
Are you still having doubts? The following table will help you clear them out with a comprehensive comparison.
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Avadi
Here are some steps to follow when investing in the residential real estate properties of Avadi.
Step 1: Fix a budget for your property. Decide the amenities and facilities you wish from the location.
Step 2: Conduct research into the real estate sector. Choose and shortlist some properties keeping your criteria in mind.
Step 3: Visit the locations and inspect the properties closely. Discuss with the neighbours to get real-time reviews.
Step 4: Consult a professional broker and choose a property. After making the final choice, meet the seller to complete the formalities.
Step 5: Pay the registration and stamp duty charges. Complete the final payment after analysing all the documents.
Step 6: Take the help of a lawyer while completing the process. Get insurance for the property.
Avadi is a suitable place if you plan to invest in the residential real estate sector. It is evolving as a commercial hub, and its proximity to major IT companies is making it the right residential area. With a moderate rate of real estate properties, Avadi’s residential real estate sector is highly profitable for investment.
Frequently Asked Questions
Is Avadi a good place to live?
Avadi has evolved as an excellent residential area with its advanced infrastructure. Reputable educational institutes, hospitals, and employment opportunities have added to the appeal of this area.
What are some good residential areas in Avadi?
Pattabiram, Paruthippattu and Kovilpathagai are some good residential areas in Avadi. They offer good local amenities to the residents.
What is the current rate of real estate in Avadi?
Currently, the price of real estate in Avadi ranges between ₹ 2,139 and ₹ 6,309. On average, it is about ₹ 5,241 per sq. ft.
Who are some reputed builders in Tamil Nadu?
Some reputed builders in Tamil Nadu include JKB Housing, Winner Foundation, VGN Developer, Ganesan Builders, and others.