Guide for Darbhanga Residential Real Estate Investment ￼
Darbhanga is a city located in the state of Bihar and is considered the fifth-largest city sharing strong economic and industrial relation with the other parts of the state. The city holds rich historical and cultural values that depict many stories of British Rule.
This city is a hub for many educational institutions and industrial units that have been offering scopes for new employment. Moreover, development in different sectors including residential real estate makes Darbhanga one of the growing cities in Bihar.
If you are looking for investment opportunities in residential real estate in Darbhanga, this context highlights all the aspects you should know.
Top Reasons for Investment in Residential Properties in Darbhanga
Some of the top reasons that attract investors to fund their money in residential real estate properties in Darbhanga are as follows:
- Higher Standard of Education
Darbhanga is home to many prestigious universities including medical, engineering, and technology colleges. A place with rich and strong educational foundations is ought to develop in recent years in terms of new employment opportunities and establishments.
- Development of Industrial Sectors
Darbhanga shares its business and economic foundation in the agricultural and horticultural sectors. However, in past recent years, there has been a development of around 426 small industries and 180 artisan-based business which increased the value of this place to a great extent.
- Road Connectivity
Darbhanga shares a roadway connection with different important parts like Madhubani, Sitamarhi, and Samastipur. The national highways 27, 527B, and other Bihar State Highways help to establish a connection to the important parts of this state and neighbouring places. Better connectivity via roadways increases the possibility of attracting new development in residential real estate.
Investment Opportunities in Residential Real Estate in Darbhanga
Here are some of the localities where lies excellent investment opportunities in Darbhanga’s residential real estate sectors:
Basdeopur is situated a few kilometres away from the actual Darbhanga town which is the economic hub. The average price of the plot in this village is starting from approximately ₹2,404 per square foot.
Being considered the twin city of Darbhanga, Laheriasarai experiences similar industrial and economic growth that the main city encounters. Here, the average price of the properties begins from around ₹3,000 per square foot.
Things to Consider Before Investing in a Residential Property in Darbhanga
Here are the potential factors to consider before buying or investing in residential real estate property in Darbhanga:
- Checking RERA Authentication
The statutory unit Real Estate Regulatory Authority (RERA), is governed in each state and UT in India by the Real Estate Regulatory Authority Act, 2016. This is concerned with maintaining transparency and resolving disputes arising in any of the real estate activities.
In Darbhanga, all builders have to register their properties under an official portal of the RERA Bihar. From there, one can check and verify the legitimacy and details of a residential property before investing.
- Financial Status
Understanding this city’s current financial status and planning accordingly is necessary as investing in residential real estate requires a huge amount of funds. Moreover, one needs to be patient with the return results in this sector as the same is not available instantly. So, it is ideal to understand the financial position before and after the investment.
- Facilities Available in the Locality
The facilities or amenities available in a locality state a lot about the quality of living. This means with great facilities like amusement parks, shopping malls, multiplexes, etc. the standard of living in that particular area will surely rise which will also increase the value of a property.
Stamp Duty in Darbhanga
The stamp duty for property registration in Bihar will be 6% of the transaction value for general buyers. However, the following has been segregated further which is explained in a tabular form:
|Owner of the Property||Rate of Stamp Duty|
|If a property is purchased by a woman||5.7%|
|If a property is purchased by a man||6.3%|
Registration Charges in Darbhanga
Generally, buyers need to pay 2% of the registration charges on the transaction value. However, the rate of registration may differ in the following instances which are explained in the form of a table:
|Owner of the Property||Rate of Registration Charges|
|If a property is purchased by a woman||1.9%|
|If a property is purchased by a man||2.1%|
It is compulsory to pay the registration charges in order to complete the process of purchasing a property. In addition, in terms of the sale agreement, the overall registration fee in the state of Bihar is 2%.
Darbhanga Residential Real Estate Sector – What’s the Forecast?
Though agriculture and horticulture in Darbhanga are the two major hits, this city is ready to experience some new developments in terms of the establishment of industrial steel and iron projects, paper mills, etc.
Moreover, there has been a constant shape-shifting in the localities where modern amenities are been provided to offer residents sustainable and advanced living quality. This is surely going to be a boon for investors who are keen to fund their money on residential real estate properties in Darbhanga.
Residential Real Estate vs Other Asset Classes
The following are the difference between residential real estate properties and other prevalent asset classes:
- Residential Real Estate vs Stocks and Mutual Funds
The stock and mutual funds market in the country is extremely volatile and offers a moderate rate of returns on investment. However, the residential real estate market offers lower risk and offers comparatively stable returns than the share market.
- Residential Real Estate vs Commercial Real Estate
Investing in commercial real estate offers more returns than residential real estate. However, there is the involvement of lower entry fees in residential real estate, unlike in commercial properties. In addition to this, it is easier to find a tenant for residential properties and allows a plethora of tax benefits.
- Residential Real Estate vs Bonds
Both investing in bonds and residential real estate offers great returns; however, the return on investment is comparatively more in residential real estate. In addition, bonds can be sold and purchased easily and require less money on entry.
- Residential Real Estate vs. Gold
Many people choose to invest in gold for both long-term and short-term investments. Moreover, selling and buying gold is comparatively easy than that of the residential real asset. However, for individuals who are looking for long-term investment and are expecting great ROI, investing in residential real estate properties may provide undeniable results.
The table shows a representation of the comparison of different asset classes which are based on terms of returns, liquidity, risks, volatility, and ticket size:
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Commercial Real Estate||Gold||Bonds|
If you are interested in investing in the industry’s best-performing bonds with no hidden charges, register on our official website to see the listings.
Steps to Invest in Residential Real Estate Property in Darbhanga
Here is the final step-by-step guide catering to how to invest in residential real estate properties in Darbhanga:
Step 1: You should plan and analyse your budget to understand the investment capacity.
Step 2: Conduct proper market research and identify the properties that have high value and will provide more returns on investment.
Step 3: Prepare a list of preferred sites that you want to invest in.
Step 4: Visit these shortlisted sites and understand the pros and cons of the estate carefully.
Step 5: Once scrutiny is done, finalise the residential plot that meets your requirement and will offer a great return on investment.
Step 6: Check the property-related official documents and process the signing of the sales agreement.
Step 7: Carry on with the registration and stamp duty formalities.
Step 8: If applicable, complete the payment of service charges of real estate consultants.
Step 9: Finally, once all the formalities are completed consider enrolling for an insurance policy to cover the personal interest of the newly purchased residential property.
The growing development in different sectors like educational, industrial, and other public utilities makes individuals check residential properties in Darbhanga. Hence, this context offers a concrete idea to the people looking for investment opportunities in residential real estate in Darbhanga.
Frequently Asked Questions
What are the hospitals present in the city of Darbhanga?
The major hospitals present in the city of Darbhanga are Paras Hospital Allalpatti, Shyama Surgical Radio Station Road, Darbhanga Medical College Hospital Laheriasarai, R.B. Memorial Hospital Laheriasarai, and Darbhanga Medical College Hospital Emergency.
What are the top colleges or universities there in Darbhanga?
Some of the major colleges or universities in Darbhanga are C.M. College, Kameshwar Singh Darbhanga Sanskrit University, K.S. College Laheriasarai, M.K. College Laheriasarai, M.R.M. College, etc.
What are the best available and affordable locations for investment in residential real estate properties in Darbhanga?
Some of the lucrative locations to invest in residential real estate in Darbhanga are Basdeopur, Mabbi Belauna, Raiyam, Lakshmisagar, Sobhan, etc.
Why investing in residential real estate properties is a lucrative option?
Investing in residential real estate properties is a profitable and effective option because of its constant increase in appreciation value, great return on investment, availability of tenants, etc.