Guide for Chandigarh Residential Real Estate Investment
Chandigarh serves as the capital of Punjab and Haryana and is a Union Territory of India. It is the oldest planned Indian city designed by the famous architect Le Corbusier. Chandigarh is famous for its modern urban planning and architectural design.
This master-planned city hosts some of the best and most reputed universities, hospitals, and IT firms. Chandigarh has a thriving IT sector, with many established MNCs having offices in the city. There are also over 2500 small businesses registered in this rapidly developing city. As a result, this city has the highest per capita income and Human Development Index in India.
Besides being a planned and developed city, Chandigarh is also one of the wealthiest cities in India. This is why real estate prices in this city have continuously increased since the year 2000, drawing in investors from all around the country.
Read along to learn the benefits of investing in residential real estate in India.
Top Reasons to Invest in Chandigarh Real Estate
Here are some of the best reasons to invest in residential real estate in Chandigarh:
- Cleanliness and Greenery
As a beautifully planned city, Chandigarh ranks as the top cleanest city in India. According to reports from the Swachh Survekshan 2022, Chandigarh gathers the 12th spot as the cleanest Indian city.
Chandigarh authorities focus on mass involvement in the city cleaning drive to achieve this rank. This ultimately makes the city cleaner and more hygienic for residents old and new. Furthermore, there are parks and open green spaces in almost every sector of Chandigarh. This drives up the demand for residential homes as families with children want to settle here.
- Growing IT Sector
Information and Technology is a growing sector in Chandigarh. Owing to overpopulation and cluster in neighbouring cities like Delhi, many IT firms are shifting their base to Chandigarh. Some of the reputed IT firms in Chandigarh are IBM Daksh, Wipro Technologies, Infosys Technologies, Reliance Communication and Tech Mahindra.
These firms act as significant employment hubs for people all across India. Employees of these IT companies look for residential spaces to settle in Chandigarh.
- Best-in-Class Education Institution
Chandigarh also offers world-class education through its famous schools and universities. Scholars seeking higher education in engineering, medicine, science, commerce, arts and management can find plenty of options in Chandigarh. This offers real estate investors the opportunity to invest in residential properties and make major profits from rents.
Residential Real Estate Investment Opportunities in Chandigarh
The following are a few excellent localities in Chandigarh for investing in residential real estate:
Kharar is an affordable locality in Chandigarh. Unlike most areas in the city which have sky-high property prices, Kharar is home to middle and upper-middle income groups.
There are educational institutions, malls, hospitals and markets situated within easy reach of Kharar. Sachdeva College of Pharmacy, Government Polytechnic College, and Shaheed Kashi Ram Memorial College are some reputed colleges in this locality. Bus stops and railway stations in Kharar provide easy access to other parts of Chandigarh.
The average price of residential properties in Kharar is around ₹3,504 per square foot.
- Sector 9
This is one of the most developed and posh localities in Chandigarh. Sector 9 houses many renowned personalities in the city. You can invest in apartments or villas in this area to earn substantial returns.
Sector 9 is perfect for those looking for an active social life with high-end shopping malls, showrooms, parks and gardens. Some famous educational institutions near sector 9 are Chitkara University and Carmel Convent School. This place also has reputed hospitals like Government Multi facility Hospital and Chakravarty Nursing Home.
The average price of residential properties in Sector 9 is around ₹34,073 per square foot.
Things to Consider before Investing in a Residential Property in Chandigarh
Here are a few points you need to consider before investing in residential real estate in Chandigarh:
- Location and Connectivity
The location of a residential property and ease of commutation to other parts of the city plays a significant role in determining its demand. For instance, a residential property like an apartment or villa situated on the city outskirts will attract attention if a highway or expressway is nearby.
Therefore, you need to conduct thorough research on the locality and analyse the frequency of public transportation and congestion at peak hours. Also, check if there are any development projects happening near the location. This will help you attract potential tenants and earn substantial returns as rentals.
- RERA Authentication
The Real Estate Regularity Authority Act 2016 mandates the presence of a Real Estate Regularity Authority (RERA) in every state in India. This statutory body helps maintain accountability and transparency in the real estate sector.
Every broker and builder must register their properties under the RERA portal of the Punjab Government. As an investor, you can verify your shortlisted property’s authenticity in this portal before investing.
- Builder’s Credibility
Before purchasing an under-construction property, ensure to study its builder’s background. A residential property built by a credible and reputable builder can fetch you higher returns. Therefore, you should consider analysing the details of the builder’s past projects. You can cross-verify this information by contacting the investors or owners involved in their previous projects.
Stamp Duty in Chandigarh
The following stamp duty charges are applicable to residential properties in Chandigarh:
|Female||5% on property value or consideration|
|Male||5% on property value or consideration|
|Male + Female||5% on property value or consideration|
|Female + Female||5% on property value or consideration|
|Male + Male||5% on property value or consideration|
Registration Charges in Chandigarh
The table below displays the registration charges for residential properties in Chandigarh:
|Female||1% on property value or consideration, up to ₹10,000|
|Male||1% on property value or consideration, up to ₹10,000|
|Male + Female||1% on property value or consideration, up to ₹10,000|
|Female + Female||1% on property value or consideration, up to ₹10,000|
|Male + Male||1% on property value or consideration, up to ₹10,000|
Chandigarh Residential Real Estate Sector: What’s the Forecast?
Unlike most Indian states, Chandigarh hosts three different government offices. As a result, the government is the largest employer in this city. These three governments are Chandigarh Administration, Haryana Government and Punjab Government.
Many eminent MNCs and Indian IT firms like DLF, Infosys, Amadeus IT Group and Tech Mahindra have set up their offices in Chandigarh. These companies attract employees nationwide and thus increase demand for residencies. Besides the IT sector, the major employers in this city are hotels, restaurants, financial institutions, construction industries and transport services. There are also over 2950 small-scale industries in this city.
The growth of these industries has contributed towards making Chandigarh India’s wealthiest city, and it drives real estate demand. Chandigarh also offers world-class amenities and over 2000 acres of public parks for its residents. That is why it has bagged the title of the happiest Indian city in 2021.
With several development projects and many businesses coming to Chandigarh, its real estate sector will likely keep growing in the near future. You can invest in residential projects in Chandigarh in posh or affordable localities for substantial ROI as periodic rentals.
Residential Real Estate vs Other Asset Classes
The following list covers the differences between residential real estate and other asset classes:
Residential Real Estate vs Gold
Residential real estate is suitable for long-term investment. On the other hand, gold is suitable for both long-term and short-term investment horizons. Additionally, gold has higher liquidity than residential real estate. However, you can earn more returns by investing in residential real estate than gold.
Residential Real Estate vs Stocks and Mutual Funds
The stock market has a volatile nature. As a result, you may earn huge profits or face massive losses. Therefore, you must have a comprehensive idea of the stock market to gain high returns from stocks and mutual funds. On the other hand, residential real estate offers stable returns and is comparatively less risky than stocks and mutual funds.
Residential Real Estate vs Commercial Real Estate
Commercial properties are much more expensive than residential properties. Due to this, finding perfect tenants for commercial properties is more time-consuming. Also, commercial properties tend to carry higher credit risk than residential properties. You can also earn more ROI from commercial properties than residential ones.
Discover More: Guide for Chandigarh Commercial Real Estate Investment
Residential Real Estate vs Bonds
Bonds also have higher liquidity than residential properties, as selling residential properties requires more time. However, residential properties offer higher returns than bonds though they carry more risks. Regarding taxation, you can enjoy more tax benefits by investing in residential properties than bonds.
If you are looking for 9-11% returns with low risks, you can invest in bonds trending in the market. So, register now and start investing with no hidden or additional charges.
The table below compares asset classes based on their liquidity, volatility, risks and ticket price:
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Chandigarh
Here are specific steps to invest in residential real estate in Chandigarh:
Step 1: Fix a budget to invest in residential properties.
Step 2: Shortlist a few locations and conduct on-site research to analyse the ground situation.
Step 3: Seek help from real estate consultants to learn about future prospects in the area.
Step 4: Finalise and purchase a location after checking its RERA authenticity.
Step 5: Check the authenticity of official documents like title deeds, property assessment extracts, Encumbrance Certificates, etc.
Step 6: Complete the payment to purchase the residential property.
Step 7: Pay all additional charges like stamp duty and registration charges to transfer the property’s ownership under your name.
Step 8: Consider paying the service charges to brokers or real estate consultants (if any).
Chandigarh is a well-planned urban city that attracts everyone from employees to real estate investors. This makes Chandigarh one of the prime metropolitan Indian cities to earn high ROI from residential real estate. However, consider abiding by the RERA guidelines while investing in residential real estate in Chandigarh to avoid losing money in fraudulent activities.
Frequently Asked Questions
What are the best locations to invest in residential real estate in Chandigarh?
Sector 8, Sector 5, Sector 9, Sector 16, Kharar and Zirakpur are a few prominent residential areas in Chandigarh.
What are some of the best universities in Chandigarh?
Chandigarh houses a number of reputable universities that offer world-class education. Punjab University, Chandigarh University, Gurukul Vidyapeeth, and Post Graduate Institute for Medical Education and Research are some of the top-ranking universities here.
Why do I need a real consultant’s help for investing in residential real estate?
A real estate agent or consultant will help you purchase a property by following the proper procedure and preventing any delays. They will also offer insights into the future prospects of a certain locality. This will help you decide whether investing in a property in that location is feasible.
Are there any National Highways near Chandigarh?
There are 3 major National Highways connecting Chandigarh to and from other cities. NH-7 connects Chandigarh to Patiala, NH- 152 connects to Kaithal and Ambala, and NH- 5 extends to Shimla.