Guide for Dombivli Residential Real Estate Investment
Dombivli is a suburban town located between Thane and Mumbai and a part of the Mumbai Metropolitan Region. This town falls under the Kalyan Tehsil in the state of Maharashtra.
Dombivli has a population of approximately 11,93,000. It is also the first literate town in Maharashtra, as most people are literate. This town also has an industrial area. As a result of its job opportunities and convenient location near Mumbai, many people look for places to rent in this area to live near their workplaces.
Let us find out how investing in residential real estate in Dombivli will help you produce passive income.
Top Reasons to Invest in Dombivli Real Estate
Below are a few reasons why you should invest in residential real estate properties in Dombivli:
- Sustainable Living
The Government and local authorities are constantly working hard to provide better living conditions to the town’s residents. As a result, this town has hygienic and clean drinking water supplies and top-grade sanitation facilities. This town also scores high in terms of providing 24×7 running water.
Many people try to find places to rent here because the rent is cheaper than in the main areas of Mumbai, and the living conditions are better.
According to data, around 10 lakh people commute from Dombivli to Central Mumbai to reach their offices. It is well connected with railways to all the parts of the Mumbai Metropolitan Region. There are a total of 9 railway stations connecting Dombivli to different areas of Mumbai.
Residential Real Estate Opportunities in Dombivli
Given below are some areas that are being developed in Dombivli where you can invest your savings:
- Runwal Gardens
Runwal is a well-known real estate developer in Maharashtra. In this project, you can purchase 1-3 BHK flats starting at ₹38 lakh. Although the price is on the higher side, the Runwal Group is known to deliver exceptional quality projects.
Moreover, the initial investment cost will be relatively low, and you can quickly put it out on rent. This way, you can generate a considerable amount of passive income for yourself monthly.
- Lodha Palava
This is another great project to invest your money in as it is situated just 15 mins away from Dombivli Railway Station. In this project, you have the option to purchase 1 BHK, 2 BHK and 3 BHK flats. Furthermore, prices start at ₹37 lakh for a residential property with 420 sq ft usable area.
Things to Consider before Buying a Residential Property in Dombivli
Before you decide to purchase a residential property in Dombivli, you need to consider the following factors:
When an individual chooses to purchase a new house or rent a flat, they tend to look for a place near a railway station that is well connected via road. As we have already stated in this blog, there are at least nine railway stations near Dombivli.
- Builder and RERA Authenticity
Before purchasing any flat or house, it is essential to check the authenticity of the builder or real estate developer, especially if the project is still under construction. If you want to check the builder’s authenticity, you can check the builder’s registration number on the city of Maharashtra’s RERA portal.
You can also check out the previously finished projects from the builders so that you can make out whether the project will be worth investing in or not.
Properties with modern amenities tend to get sold off quickly. Moreover, renting them out at a higher price is also easier. When looking for flats, people tend to prefer those that have all the necessary amenities, such as parking space, lifts, power backup, proper ventilation and access to recreation spaces.
It is essential to invest in apartments and houses with these modern amenities if you want to put them on rent.
Stamp Duty in Dombivli
Since Dombivli is a part of the Mumbai Metropolitan Region, the stamp duty for Dombivli will be the same:
|Areas in Mumbai||Stamp Duty in Mumbai for Women||Stamp Duty in Mumbai for Men|
|Within the municipal limits of any urban area||5% of an individual’s property’s market value||6% of an individual’s property’s market value|
|Within the limits of any municipal council/ panchayat/ cantonment of any area within MMRDA||3% of an individual’s property’s market value||4% of an individual’s property’s market value|
|Within the limits of any gram panchayat||2% of an individual’s property’s market value||3% of an individual’s property’s market value|
Registration Charges in Dombivli
Here are the registration charges which you will have to pay if you purchase a property in Dombivli:
|Area in Mumbai||Registration Charges|
|Within the municipal limits of any urban area||1 %|
|Within the limits of any municipal council/ panchayat/ cantonment of any area within MMRDA||1%|
|Within the limits of any gram panchayat||1%|
Dombivli Residential Real Estate Sector: What’s the Forecast?
The real estate market in the suburban areas of the Mumbai Metropolitan Region has been on the rise for a few years. Furthermore, Dombivli has also been shortlisted for the smart city category. If you invest in a flat or house in Dombivli, you can own a house near Mumbai. However, the prices will be far lesser than the properties in Mumbai.
All these factors make residential properties in Dombivli worthwhile investments. You can easily find people to rent out the property and earn considerable passive income.
Residential Real Estate vs Other Asset Classes
Below is a brief comparison of residential real estate with all the other asset classes:
Residential Real Estate vs Commercial Real Estate
You can earn more through rent if you invest in commercial real estate. However, residential real estate properties are on the rise in Dombivli. You can rent a residential property to 3 people at a time and earn more revenue.
Discover More: Guide for Dombivli Commercial Real Estate Investment
Residential Real Estate vs Stocks and Mutual Funds
Unlike residential real estate investments, stock, and mutual funds usually give more unstable returns. These tend to be more volatile, unlike real estate investments.
Residential Real Estate vs Gold
Gold is a less risky investment option compared to real estate. However, they will not give you the high returns you will receive from a residential real estate investment in a suburban area like Dombivli.
Residential Real Estate vs Bonds
Investing in Bonds carry less risk, whereas residential real estate investments are potentially risky. But if you have a high-risk appetite and want to gain more returns, you can invest in real estate.
Browse through the top-rated bonds and invest without having to pay any additional or hidden charges.
We have created a tabular illustration for comparison of all these asset classes:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Dombivli
Here are the steps to invest in residential real estate in Dombivli:
Step 1: Set an investment budget and search for properties within it.
Step 2: Select a few properties and then go and thoroughly check them physically.
Step 3: Finalise the residential property to purchase and complete all documentation.
Step 4: Pay all charges like stamp duty, registration charges, and fees for brokers, agents, advisors etc.
Step 5: Take insurance coverage for your residential real estate property.
The real estate market is rapidly growing in the Dombivli area. Therefore, if you invest in a residential property in this area, you can earn a stable passive income. Moreover, you can also sell the property at a higher price after 10-15 years.
Frequently Asked Questions
What is the price of renting a 1 BHK flat in the Dombivli region?
The price of renting a 1 BHK in the Dombivli region will be approximately ₹12,500. Moreover, such flats are around 583 sq ft, and the security charges can be approximately ₹20,000.
What is the price of purchasing a flat in the Dombivli West area?
Flats between 620.00 sq ft – 950.00 sq ft will cost around ₹40.3 lakh – ₹61.75 lakh in Dombivli West. Furthermore, you can get such flats in a gated complex in Dombivli.
What will be the price of purchasing a flat in the Dombivli East area?
A 2 BHK flat of around 739 sq ft will cost around ₹63 lakhs in Dombivli East. This cost is usually for a pre-owned house around 10-12 years old.
What are the other railway stations near Dombivli other than the Dombivli railway station?
A few stations which are near Dombivli are as follows:
Kalyan Junction Station- 4.77 km away
Bhiwandi Road Railway Station- 8.26 km away
Thane- 12.73 km away