Bhopal is the capital of Madhya Pradesh. It is known as the City of Lakes due to its natural and artificial lakes. Bhopal is also the 16th largest city in India. It houses various research and educational institutions, including ISRO‘s Master Control Facility.
Bhopal has been selected as one of the first 20 Indian cities to be transformed into a smart city under the flagship program Smart Cities Mission. It has also been rated as the cleanest state capital in India for three years.
Let us understand why investing in residential real estate in Bhopal might be a profitable venture:
Top Reasons to Invest in Bhopal Real Estate
Following are some of the reasons as to why you should invest in residential real estate in Bhopal:
This city already has a total of 104 engineering colleges and 42 medical colleges and is planning a few more to transform it into an educational hub worth competing with Pune. It ensures a regular influx of students with an increasing demand for rental housing. The state government has further earmarked 400 acres to establish educational institutions.
Demand and Development
Madhya Pradesh state government is interested in making Bhopal an IT and Software hub. Besides this, the city thrives in the pharmaceutical, FMCG, electronic and power sectors. It ensures that the city will see population growth and increase the demand for residential properties.
Residential Real Estate Investment Opportunities in Bhopal
Following are some of the areas in Bhopal which are suitable for residential real estate investment:
It is officially known as Narmadapuram, one of Bhopal’s most affluent localities. The area has great connectivity via standard roads and public transport access. The rate of residential property here ranges around ₹1,571 and ₹9,333 per square foot.
It is one of the posh localities in Bhopal, with different residential properties ranging from luxurious villas to multi-storey apartments. Moreover, the Arera colony has easy connectivity to other parts of the city, making it a prime location for residential real estate investment. Property rates in this locality range between ₹2,137 to ₹37,500 per square foot.
Read Also: Guide for Patna Residential Real Estate Investment
Things to Consider Before Buying a Residential Property in Bhopal
Following are some factors that you might want to keep in mind before purchasing a residential property in Bhopal:
Whether you wish to invest in independent apartments or residential societies, it is crucial to assess construction quality. Before opting for the property, check the quality of the walls, the flooring material, bathroom fittings, etc., so that you do not face any issues in the future.
Opting for a property in a well-developed area might be a problem as it might be expensive. Therefore, you can opt for the next best locality that is likely to prosper in a few months or years. However, a thorough check is necessary to assess the scope of growth before investing.
RERA is an administrative body formed by the Real Estate (Regulation and Development) Act of 2016 under the Government of India and is present in all states. It aims to promote transparency and reliability in India’s real estate sector.
Before investing in a residential property in Bhopal, verify its details on the official website of RERA Madhya Pradesh. The portal records of all registered properties and builders in the state of MP.
Stamp Duty in Bhopal, Madhya Pradesh
Any person who buys a property or transfers it in Madhya Pradesh has to pay stamp duty to the state government. Stamp duty is the tax levied on a property’s market value. Following are the rates applicable in Bhopal:
|Gender||Stamp Duty Rates|
|Joint (Male + Male)||7.5%|
|Joint (Male + Female)||7.5%|
|Joint (Female + Female)||7.5%|
Registration Charges in Bhopal, Madhya Pradesh
Madhya Pradesh Government charges equal registration charges from both men and women, just like they do in the case of stamp duty. Here is the rate of registration charges applicable in Bhopal, Madhya Pradesh:
|Joint (Male + Male)||3%|
|Joint (Male + Female)||3%|
|Joint (Female + Female)||3%|
Bhopal Residential Real Estate Outlook
Currently, the starting price of residential properties in Bhopal stands at ₹125 per square foot, and the average price is ₹3,799 per square foot. As per the price trends, buying and selling properties in Bhopal is profitable. As the rates are still low, it is sensible to invest in Bhopal’s residential real estate sector.
With many IT businesses preparing to establish their bases in the city and other development procedures on the card, real estate rates are expected to increase soon. As the SEZs are turning up along with several effective and properly designed homes, this is the perfect time for investors to invest in residential real estate in Bhopal.
Residential Real Estate vs Other Asset Classes
Following is the comparison between residential real estate and other asset classes:
Residential Real Estate vs Bonds
Bonds (AAA- rated) are comparatively more secure and risk-free than real estate investments. However, returns are much higher in the case of residential real estate investment.
Regarding liquidity, bonds investment is a better option as it can be easily redeemed and converted to cash. On the other hand, it can take a lot of work to convert real estate into cash owing to the huge transaction value it requires.
If you wish to invest in a secure asset and earn fixed returns of around 9-11%, register on Our website today and start investing in top-rated bonds!
Residential Real Estate vs Gold
Real estate allows you to earn passive income every month, which is not possible in the case of gold. Moreover, gold is riskier than real estate investment because the prices can fluctuate according to market sentiments.
Residential Real Estate vs Commercial Real Estate
Real estate allows you to earn monthly passive income, which is impossible in gold. Moreover, gold is riskier than real estate investment because the prices can fluctuate according to market sentiments.
Discover More: Guide for Bhopal Commercial Real Estate Investment
Residential Real Estate vs Stocks & Equity Mutual Funds
Real estate offers more consistent returns when compared to stocks and equity mutual funds. However, returns are much higher in the case of stocks and equity mutual funds as the price depends on market sentiments.
Here is a tabular representation of comparison between different types of asset classes on the basis of returns, liquidity, risk, volatility and ticket size:
|Parameters||Residential Real Estate||Stocks & Equity Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Bhopal
Here are the steps that you can follow to invest in residential real estate in Bhopal:
Step 1: Make a list of the places you want to invest.
Step 2: Set a budget and choose only those locations within your budget.
Step 3: Consult a property adviser after visiting all the localities individually. Also, verify the property’s details and do a background check of the builder by visiting the official RERA website of Madhya Pradesh.
Step 4: Finalise a property that suits your requirements.
Step 5: Contact a lawyer and complete all the legal formalities. Prepare all documents, such as the sale deed, power of attorney, etc.
Step 6: Complete the payment process. Make sure to complete the stamp duty and registration formalities as well.
Read More: Guide for Ludhiana Residential Real Estate Investment
Bhopal has the USP to become a financial investment centre of Madhya Pradesh. Due to low facility expenses to establish businesses, numerous MNCs have Bhopal on their radar for future endeavours. It will further increase employment opportunities in the city and therefore bring in more people, increasing the demand for residential properties.
Frequently Asked Questions (FAQs)
What are the different types of residential properties available in the market?
You can invest in different residential properties: villas, apartments, penthouses, bungalows, duplexes and row houses.
What are some of the posh localities in Bhopal?
Some of the posh localities in Bhopal are Katara Hills, Kolar Road and Ayodhya Bypass.
Do stocks and mutual funds require more investment than real estate?
No, real estate requires a much higher quantum of investment in comparison to stocks and mutual funds. Mutual funds also let you invest via a Systematic Investment Plan (SIP).
Is real estate better than gold in terms of short term investment?
No, real estate is suitable for long term investment, while gold is appropriate for both short-term as well as long-term investment. The price appreciation of real estate can only be realised in the long term.