Guide for Farrukhabad Residential Real Estate Investment￼
Farrukhabad is a beautiful city located in Uttar Pradesh, surrounded by the Ganges. Over the years, this city is known for its business of zardozi embroidery and zari weaving. Gradually, it is developing as a residential area. Currently, it offers affordable pricing for residential real estate properties, which makes it ideal for residents.
As of 2023, there is a population of 364,000 in Farrukhabad as per a report of Census 2011. This shows the popularity of this area as a residential spot. The area has good connectivity across UP. Moreover, the Ganga Expressway Project will further enhance the connectivity of this region.
Read along to get a comprehensive overview of the residential real estate sector of Farrukhabad and its investment options.
Top Reasons to Invest in Residential Real Estate in Farrukhabad
Farrukhabad can be a good residential area. Here are the top reasons why you should consider investing in the residential real estate sector of Farrukhabad.
- Connectivity & Transport
Farrukhabad is developing extraordinary connectivity across UP and different parts of India. It was a part of the Ganga Expressway, which was a government initiative to enhance connectivity. There are multiple buses here belonging to the Uttar Pradesh State Road Transport System. Rail is a major transport here, the closest station being Farrukhabad Junction railway station. The nearest airport is Kanpur Airport at Mohammadabad.
- Industrial Developments
Farrukhabad is rapidly urbanising, with impressive industrial development. The industry of zardozi embroidery and zari weaving is the most popular one here. Industries for agricultural products and clothing businesses are also quite big. Apart from that, this region is also known for its ready-made garments and embroidered items. This makes it a good place to reside while having a strong source of income.
- Local Facilities
Various impressive facilities help Farrukhabad stand out from other areas of UP. For instance, it has some good schools and colleges here, such as Modern Public School, Jaipuria School, City Public Group Of College, etc. Jograj Singh Memorial Hospital and RK Hospital take care of the health of the residents. Moreover, it has some good marketplaces like the Yadav Market.
Investment Opportunities in Residential Real Estate in Farrukhabad
There are some good areas in Farrukhabad, that offer great residential options. You should consider the following areas if you are planning to invest in the residential real estate properties of Farrukhabad.
A cantonment town in Farrukhabad, Fatehgadh comes under the Kanpur Division. Fatehgarh Rail Way Station makes it easier for the residents to travel across the area. Moreover, you can find buses around the city from Fatehgarh Bus Station. Garg Clinic offers healthcare services here. Nearby educational institutes are Vidhya Institute of Management and JRPM Public School. Here, 3 BHK apartments start from about ₹ 40 lakhs.
- Shyam Nagar
This area near Fatehgarh can be a good residential area for most people. It offers impressive transport facilities through the Shrimad Dwarkapuri Railway Station. Moreover, it is close to multiple schools and colleges like Saraswati Vidya Mandir Inter College and Mahadevi Vidya Mandir. Vishal Mega Mart is the biggest marketplace here. A 2BHK apartment starts from only ₹ 12 lakhs in this area.
- Amethi Kohna
This is another popular residential area under the Barhpur Block of Farrukhabad. Fatehgarh Railway Station makes it easier to travel here, while buses are also available across the town. Kunti Hospital offers healthcare assistance here. Nearby educational institutes include Maharaja Harishchandra Mahavidyalaya and Government Primary School. Independent houses with up to four bedrooms start from about ₹ 80 lakhs here.
Finally, this can be a good choice for residential real estate in Farrukhabad. It offers good transport through Fatehgarh railway station. St. Anthony’s Senior Secondary School, Rosy Public School, City Public Group Of College, etc., are some of the nearest educational institutes. Tiwari Hospital and Global Hospital offer healthcare services here. You can find large independent houses starting from ₹ 80 lakhs in this region.
Things to Consider Before Investing in a Residential Property in Farrukhabad
Here are a few things to keep in mind when investing in the residential real estate sector of Farrukhabad to avoid making mistakes.
- Environmental Issues
As Farrukhabad is still developing as an urban area, some of its parts might be facing environmental issues. For instance, these parts deal with a lack of proper drainage and poor road conditions. Thus, you must check the area closely and avoid purchasing properties, as such locations can be unhealthy and unhygienic.
- Safety Problems
It is always important to consider safety precautions when it comes to investing in the residential real estate sector. Some developing areas of Farrukhabad might be less safe than others. It is therefore essential to ensure that the building has proper safety staff, locking systems and CCTV surveillance.
- RERA Registration
The Indian government aims at keeping track of real estate transactions through a statutory body called Real Estate Regulatory Authority (RERA). By law, every builder must register a new real estate property under RERA to ensure its authenticity. Thus, you must check the website of UP RERA to ensure that your chosen property is authentic and enlisted under RERA.
Stamp Duty in Farrukhabad
It is important to know about the stamp duty of a region if you are investing in residential real estate. Here are the stamp duty details in Farrukhabad.
- Stamp Duty Based on Gender
|Joint ownership of two men||7%|
|Joint ownership of two women||6%|
|Joint ownership of a man and a woman||6.5%|
- Stamp Duty Based on Deeds
|Type of Deed||Registration Charge|
|Lease deed||₹ 200|
|Gift deed||₹ 60-₹ 125|
|Adoption deed||₹ 100|
|Power of attorney||₹ 10-₹ 100|
|Special power of attorney||₹ 100|
Registration Charges in Farrukhabad
It is mandatory to pay registration charges when purchasing real estate properties in India. Here are the registration charges in Farrukhabad.
|Joint ownership of two men||1%|
|Joint ownership of two women||1%|
|Joint ownership of a man and a woman||1%|
Farrukhabad Residential Real Estate Sector-What’s the Forecast?
Farrukhabad is on its way to becoming one of the biggest and most popular residential areas in Uttar Pradesh. UP RERA reported a growth of 23% in its real estate industry as of 2022. Nearly 215 new projects were registered under RERA, which is a clear growth in the last couple of years. The state government is also investing largely to expect a $ 1 trillion real estate sector in UP.
Farrukhabad is particularly growing as a residential area following its involvement in the Ganga Expressway Project, which has enhanced its connectivity. Moreover, it is developing as an industrial hub. Various real estate projects are currently in line for development in this area in future. Property rates in this area range between ₹ 1,913 and ₹ 3,000 per sq. ft.
Residential Real Estate Vs. Other Asset Classes
If you are wondering whether residential real estate investment can be beneficial, here is a comparison between different classes of assets.
- Residential Real Estate vs Commercial Real Estate
Properties under commercial real estate are developed for running a business. Individuals or groups often rent such properties to run their businesses. While these might generate attractive returns, it is a serious liability to find suitable tenants for such buildings. Moreover, residential real estate properties can offer better tax benefits to the owners.
- Residential Real Estate vs Stocks & Mutual Funds
The stock market attracts investors for generating impressive returns on investment. Mutual funds are usually reliable. However, the returns often fluctuate based on changes in economic conditions. It is therefore volatile to the market, which can be a serious risk. Such a risk is not common in residential real estate investments.
- Residential Real Estate vs Bonds
Bonds can be a good investment option for new investors who are not willing to take risks. They offer a fixed return, irrespective of the changes in market conditions. The risks are much lower here compared to the stock market.
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- Residential Real Estate vs Gold
Gold is one of the most valuable metals in India, which has increased its significance as an investment option. It is easier to liquidate it compared to other assets, and thus it can be a good option for both long-term and short-term investments. However, it cannot compete with the returns generated from residential real estate properties.
The following table will give you a better understanding of the differences between different asset classes while investing.
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Farrukhabad
If you are planning to invest in the residential real estate sector of Farrukhabad, here are some steps to get you started.
Step 1: Determine the facilities you want in your residential real estate property. Fix a budget keeping the current market rates in mind.
Step 2: Start looking for properties in the chosen location. Consult a professional broker for this.
Step 3: Visit the sites and inspect the environment. Discuss with the neighbours to generate real-time reviews.
Step 4: Shortlist the properties considering their facilities and price. Make your final choice after analysing them.
Step 5: Meet the seller and complete the formalities. Consult a lawyer and assess all the documents.
Step 6: Make payments, including stamp duty and registration charges. Get an insurance policy for your property.
Thus, as you can see, Farrukhabad can be a suitable residential area with its industrial and infrastructural developments. As the prices for real estate are currently low and affordable, it can be beneficial for investors. However, it is important to check various aspects of the area while purchasing a real estate property here.
Frequently Asked Questions
What are some good residential areas in Farrukhabad?
Some good residential areas include Fatehgadh, Shyam Nagar, Amethi Kohna and Bholepur. You can prioritise these areas when investing in residential real estate properties.
What is the cost of real estate in Farrukhabad?
Currently, real estate prices are quite affordable in Farrukhabad, starting from ₹1,913. It can increase up to ₹ 3,000. On average, it is about ₹ 2,581 per sq. ft.
What is an encumbrance certificate?
You might require an encumbrance certificate when dealing with real estate. It is a legal document used to specify that there are no financial liabilities associated with a residential property. This makes it safer to purchase property free of any complications.
Why do I need to pay stamp duty in Farrukhabad?
Stamp duty is a form of tax you pay when purchasing real estate properties. It goes to concerned state governments.