Guide for Durgapur Residential Real Estate Investment
Durgapur is a major tier-2 city in the Bardhaman district of West Bengal. This city is the fourth largest urban agglomeration after Kolkata, Asansol and Siliguri.
Durgapur is a planned industrial city that lies beside the Damodar River. It is the biggest industrial hub of West Bengal and is famous for the Durgapur Steel Plant, one of India’s largest steel plants. Moreover, it has major manufacturing industries like Alloy Steel Plant, Philips Carbon Black Ltd, Durgapur Project Ltd, and Graphite India Ltd.
This city attracts people searching for jobs from other parts of West Bengal and neighbouring states. Durgapur is also well-known for its excellent infrastructure, with its own power suppliers and amenities like state-of-the-art hospitals, shopping malls, restaurants, etc.
The upcoming industrial corridor project connecting Ludhiana and Dankuni will cross through Durgapur. This will act as an edge towards the industrial development of this city and improve connectivity with the rest of West Bengal. This will attract real estate investors to invest in residential properties in Durgapur.
Keep reading to learn about the perks of investing in residential real estate in Durgapur.
Top Reasons to Invest in Durgapur Real Estate
Following are a few important reasons for you to invest in residential real estate in Durgapur:
- Industrial Area
Durgapur is a major industrial city in West Bengal and India. Besides the Durgapur Steel Plant, there are other industries like Mining and Machinery Corp and Coal India. These industries offer a significant contribution to Durgapur’s economy and are the primary source of employment for the locals.
Durgapur’s employment opportunities attract a large population from other cities of West Bengal, Odisha, Andhra Pradesh and Telangana. This influences the growth of the city’s real estate sector and makes residential properties here a worthwhile investment.
- Location and Connectivity
Durgapur offers excellent accessibility to districts like Purulia, Bankura, and Birbhum via the NH-19 highway. The 6-lane NH-2 (GT Road) connects the city with the rest of the country. Furthermore, Durgapur provides excellent transportation via public and private buses to Kolkata. It only takes 3 hours to travel between the cities.
Travelling within the city is relatively quick and affordable here via buses, cabs and auto rickshaws. Durgapur is also connected to the Indian Railways, which allows easy transportation.
Residential Real Estate Investment Opportunities in Durgapur
Here are a few localities where you can invest in residential real estate in Durgapur:
Bidhannagar is a planned town in Durgapur managed by the Asansol Durgapur Development Association. The Grand Trunk Road and Jawaharlal Nehru Road pass through this region, making commutation easier.
This area hosts major schools and hospitals of Durgapur. Some prominent schools in this region are Our Lady Queens of Missions, Saltlake Siksha Niketan, and Bidhannagar Government School. You will also find hospitals like The Mission Hospital, Vivekananda Hospital, and Bidhan Niramoy Nursing Home.
Residential property prices in Bidhannagar range from ₹30 lakh to ₹3.8 crore approximately.
Benachity is another popular residential and commercial town of Durgapur. As a residential area, this region hosts several English medium schools. Some are Apex School, Holy Model School, and Assembly of God’s Church School.
This place also hosts a few software hubs and other commercial parks that act as primary sources of employment. The Durgapur Railway Junction offers smooth commutation from Benachity to other parts of India.
Here, you can mostly find independent houses and plots to invest in. Property prices in Benachity can range from ₹18.5 lakh to ₹1.75 crore.
Things to Consider before Investing in a Residential Property in Durgapur
Below are a few points you need to consider before investing in residential real estate in Durgapur.
Budget plays a vital role in determining what kind of residential properties are fit for you to invest in. Therefore, as the first step, you must have complete knowledge of your finances. This will help you decide your budget, keeping in mind the risks involved in real estate investment.
Knowing your budget will allow you to decide whether to apply for a home loan. Consider calculating your EMI beforehand if you plan to get a home loan so that you do not get overburdened with debt.
- Credible Builder
A builder’s credibility and reputation can ensure the quality and price of an under-construction property. Therefore, you must research the builder’s profile before investing in a residential property. To conduct this research, it is necessary to analyse the builder’s past projects and successful works. You can also cross-verify the builder’s information by contacting investors and owners of their past projects.
- RERA Verification
The Real Estate Regularity Authority Act 2016 mandates the formation of a Real Estate Regularity Authority (RERA). RERA helps maintain accountability and transparency in the real estate industry.
However, in West Bengal, a different body serves this purpose. The West Bengal Government introduced the West Bengal Housing Industry Regulation Act to play the same role as RERA in other parts of India.
You can check the authenticity of your shortlisted residential properties in Durgapur on WBHIRA’s official website.
Stamp Duty in Durgapur
Here are the stamp duty charges applicable in residential real estate in Durgapur.
|Properties worth less than ₹25 lakh||4%|
|Properties worth value over ₹40 lakh||5%|
Registration Charges in Durgapur
The table below displays the registration charges for purchasing residential properties in Durgapur.
|Properties that value less than ₹25 lakh||1%|
|Properties that value over ₹40 lakh||1%|
Durgapur Residential Real Estate Sector: What’s the Forecast?
As a tier-2 city, life in Durgapur is affordable for people with mediocre salaries. This city stands out as 33rd of 36 expensive cities in West Bengal. Furthermore, Durgapur is also the 31st most liveable city in West Bengal. In addition, its excellent infrastructure, connectivity and social amenities make this city a desirable location to reside in.
The Haldia-Durgapur section of the Ludhiana-Dankuni industrial corridor will receive an investment of ₹43,000 crore. This project is most likely to catalyse freight transportation between cities nationally. Also, projects concerning AH-1 are underway to improve the connection from Durgapur to Bangladesh, Nepal, Myanmar and other north Bengal districts.
These two factors make Durgapur a prime industrial hub that is expected to grow in future. Besides manufacturing industries, West Bengal Authorities are working to introduce IT companies here. These work as magnets to attract people who are seeking job opportunities in this city.
Also, the growing population in Durgapur is attracting real estate investors to invest in commercial and residential projects. Many developers are catering to this need by offering residential apartments and homes at competitive prices.
Residential Real Estate vs Other Asset Classes
Let us look at the differences between residential real estate and other asset classes.
Residential Real Estate vs Stocks and Mutual Funds
Stocks and mutual funds have a volatile market. As a result, you can gain excellent returns or incur huge losses from them. Therefore, investors must have a thorough idea about this marketplace before investing. On the other hand, residential real estate is a less risky investment than stocks and mutual funds.
Residential Real Estate vs Gold
Gold has a highly liquid market, as buying and selling gold is easier than residential properties. Also, gold is fit for both long and short-term investments, unlike residential real estate, which is only suitable for long-term investments. Finally, you can fetch high returns by investing in residential real estate than gold.
Residential Real Estate vs Commercial Real Estate
Commercial properties are more expensive than residential ones. Therefore, you can earn higher returns from commercial real estate. However, they carry higher credit risk due to high transaction costs. Residential real estate offers better tax benefits.
Residential Real Estate vs Bonds
Bonds and residential real estate are good sources of passive income. However, bonds have a more liquid market than real estate, and they carry lower risks. However, investing in residential real estate usually, fetch higher returns than bonds.
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The table below compares these asset classes based on their liquidity, volatility, risks, returns and ticket price.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Durgapur
Here are some basic steps to help you invest in residential real estate in Durgapur.
Step 1: Fix a budget to invest in residential properties in Durgapur.
Step 2: Shortlist a few locations and conduct on-site research to analyse the ground situation.
Step 3: You can seek assistance from real estate consultants to know about prospects in the area.
Step 4: Finalise and purchase a property after checking its WBHIRA authenticity.
Step 5: Make the necessary payments to transfer the property under your name.
Step 5: Collect the necessary documents like the sale deed and Encumbrance Certificate.
Step 6: Pay all necessary charges like stamp duty and registration charges.
Step 7: Consider paying the service charges to brokers or real estate consultants (If any).
Step 8: Purchase an insurance policy to cover your recently bought residential property. This will help safeguard you and your money in case of significant damage to the residential property.
You can fetch high returns by investing in residential real estate in Durgapur. However, like all other investments, residential real estate carry certain risks. Therefore, consider doing in-depth research and abiding by the RERA norms while investing in residential real estate in Durgapur.
Frequently Asked Questions
Does Durgapur have an airport?
Kazi Nazrul Islam Airport is the only domestic airport for Asansol and Durgapur. This is the third busiest airport in West Bengal and offers quick commutation for residents of these two cities to other Indian states.
What residential properties should I invest in Durgapur to earn good returns?
Residential real estate investment is a growing business in Durgapur. You can invest in independent houses and plots to earn substantial returns from real estate investment.
Will I receive any tax benefits by investing in residential real estate in Durgapur?
Under Section 80C of the Income Tax Act, you can save up to ₹1.5 lakh on your home loan principal amount. Also, according to Section 24 of the Income Tax Act, you can save up to ₹2 lakhs on the payable interest on your home loan. These tax benefits are applicable only on investment or purchase of residential properties.
Are there software companies in Durgapur?
There are a few IT companies in Durgapur compared to the state capital, Kolkata. Usom IT Solution, Way to IT Universe, Refresh Infratech, and Conception Technologies are some of them.