Guide for Karur Residential Real Estate Investment

Karur, a city in Tamil Nadu, has seen tremendous growth in the residential real estate sector. The property market here is scaling new heights of turnover. 

The city is famous for producing major crops like sugarcane, oil seeds, rice, cotton etc., and horticultural crops; hence has emerged to be a commercial centre regulating the trading of agriculture-related commodities.  

To know about the prospects of residential real estate in Karur, refer to the sections below!

Top Reasons to Invest in Residential Real Estate in Karur

Karur has multiple resources to offer for you to invest in residential real estate. Here are some of the components:

• Availability of Amenities

The infrastructural development and availability of basic and civic amenities are attracting the masses in Karur to settle. The city has gained popularity predominantly for the export of home textile products to foreign countries. In addition, the city has a robust water and electric supply.

• Industrial and Business Growth

Karur is a significant home textile centre, holding products, table linens, kitchen linens, wall hangings, toilet linens and bed linens. This city also houses an integrated textile park. In addition, Karus is a pivot of bus body building in the state, constituting around 70% of bus coaches which are being constructed over here.

Tamil Nadu Newsprint and Papers Limited (TNPL) is the world’s largest producer of bagasse based-paper. Around 230,000 tons of writing and printing paper is produced every year. Karur has also seen advancement in the tertiary sectors. All these sectors increase employment opportunities alongside contributing to the state’s economy.

• Excellent Road and Railway Connectivity

Another notable reason why you should opt for residential real estate investment in Karur is that the city has a robust transportation system. Even there are bus services that residents can easily avail. 

Two National highways: NH 44 and NH 67 pass through Karur, connecting the city with all the major parts of the country. You can also access the Karur Junction railway station which is categorised as an A-grade junction under the Salem division. Most of the trains commuting to different parts of the country halt here. 

Residential Real Estate Investment Opportunities in Karur

You can consider the below-mentioned locations in Karur for materialising your residential real estate investment plan.

• Gandhigramam

Gandhigramam is one such location in Karur where you can invest in a residential property. You will get a peaceful environment and amenities that will make life easier. You will also be bestowed with convenient commuting options. National Highways that are reachable to Gandhigramam are NH81 and NH44.

• Anbu Nagar

Anbu Nagar is another property location ideal for residential real estate investment.Almost all the residential properties in Anbu Nagar are endowed with basic facilities. You will get a safe locality and live amidst greenery. Anbu Nagar is close to both Virarakkiyam Railway Station and Karur Junction Railway Station. Even you have easy access to Government health centres. 

• Athur

You can consider Athur for investing in a residential property. The postal head office of Athur is in Sengunthapuram This locality in Karur has all the components, thereby attracting investors. The nearest railheads from this place are Karur Junction Rail Way Station and Moorthipalayam Railway Station. You can even have easy access to bus stops, hospitals, colleges, schools, supermarkets and other amenities in Athur.

• Manavadi

Another prominent property site in Karur is Manavadi. The village has a robust transportation system. You can easily avail of public and private bus services from here.Even the place is close to railway station. Thanthoni is the place near the village where all economic activities are carried on.

Things to Consider Before Buying a Residential Property in Karur

Before you proceed to invest in residential real estate in Karur, consider the following parameters.

• RERA Verification

The first and foremost thing that you must check before investing in a property is whether it is RERA registered. TN RERA was implemented to track and adjudicate discrepancies in the real estate sector, thereby bringing standardisation and transparency during a property transaction. Hence, looking for RERA-registered property will help you resolve disputes faster and retrieve necessary details related to the property.

• Property Location

Property location plays a significant role in ascertaining property value. It also determines how conveniently you can lead your life in the long run. Choose a location that has robust infrastructure. Analyse the road and railway connectivity and the development potential of the area you have chosen. In addition, check the neighbourhood as well. 

• The Rental and Resale Value of Property

Ensure to check the property’s future resale and rental worth before investing in it. Considering the future gains will prove highly beneficial in the long run. A proper location and ease of accessibility of basic and civic amenities will help you get standard resale and rental value.

Stamp Duty in Karur

The stamp duty charge in Tamil Nadu is 7% of the worth of the property. There is no concession on stamp duty rates and registration charges for women.

Follow the table to see the stamp duty rates that are applicable on different types of documents.

Registration Charges in Karur

The table highlights the registration charges in Karur based on the document category. 

Karur Residential Real Estate Sector: What’s the Forecast?

In the coming days, the industrial base of Karur will strengthen. The handloom export from the city will soar higher with thousands of exporters supplying products towards the leading chain stores of the world.

Around 600 to 700 SMEs are involved with the textile export business in Karur. Several Government schemes will support the growth of MSME sectors in the city. 

A massive investment in the Karur textile park has widened employment opportunities. The Karur Textile Park Limited (KTPL) project inaugurated in 2011 is anticipated to offer more direct and indirect employment in the coming days. The KTPL is about to become a significant export zone for home textiles. The Ministry of Textile under SITP (Scheme for Integrated Textiles Park) has invested a lump sum amount of ₹130 crores.  Even the residents staying within a radius of 20 km will benefit from this project. 

Furthermore, allied industries like dyeing factories, ginning and spinning mills and more offer great employment. 

Even the transportation sector will get a boost in the coming days which will make the life of residents easier. For instance, new projects have been sanctioned to double up the Erode-Karur line, Salem-Karur-Dindigul line and more. 

Residential Real Estate Vs Other Asset Classes

Go through the comparison made between residential real estate and other asset classes.

• Residential Real Estate vs Commercial Real Estate

You get higher returns with commercial real estate investment. However, residential real estate allows you to reap tax benefits and has a lower entry ticket. In addition, it is comparatively easier to find tenants for residential real estate than a commercial alternative. 

• Residential Real Estate vs Gold

Gold can be encashed very easily and is ideal for both short and long-term investments. However, it is subjected to higher volatility as compared to residential real estate. Moreover, residential real estate investment is marked via structured tax benefits. Also, with real estate, you can have a month-to-month income.

• Residential Real Estate vs Bonds

Both bonds and residential real estate are great passive income sources. While the value of a bond being static enables you to earn a predictable return. With a residential real estate investment, you can get tax benefits and earn a comparatively higher return. 

For earning a fixed return, you can invest in a bond. Explore top-rated bonds, on our homepage. 

• Residential Real Estate vs Mutual Funds and Stocks

You can earn higher returns with mutual funds and stocks. It can also be liquidated very easily. However, you cannot cross out the risks with these investment options.  Depending on market fluctuation, you can earn higher returns or end up losing a substantial amount of money. However, with a residential real estate investment, you do not have such risks. 

Refer to the table below to analyse the different asset classes with respect to their volatility, liquidity, returns, risks and ticket size.

Steps to Invest in Residential Real Estate in Karur

The steps that you must follow to invest in residential real estate in Karur are mentioned below:

Step 1: Set a budget before investing in any residential real estate. 

Step 2: Conduct property market research and choose some properties. 

Step 3: Carry out a thorough on-site and online research of the shortlisted properties. To do so, take the help of a real estate agent. 

Step 4: Before finalising a property or investing in it, you must ensure that it is registered with RERA.

Step 5: Check thoroughly whether the documents are in order.

Step 6: Initiate payment for stamp duty and registration charges for the quick transfer of property possession.

Once you have completed the above-mentioned steps, avail of an insurance plan and protect your property from unforeseen circumstances.

Final Word

Karur is a popular destination to invest in residential real estate properties. You will get ample profitable opportunities and resources to make such an investment. In order to make your investment rewarding, go through the sections mentioned below. Having an idea regarding the best property sites, future prospects, RERA registration of the property and more will help you make an apprised decision.

Frequently Asked Questions

1. Is there any airport near Karur?

Ans. Yes, the Tiruchirapalli International Airport is situated near Karur, which is 78 km away. Additionally there is the Coimbatore and Madurai airport which is 128 Km and 158 Km respectively from the city. 

2. What are the necessary documents that are required for property registration in Karur, Tamil Nadu?

Ans. Here are the documents that you have to keep in order while registering a property in Karur:

• KYC Papers
• Patta transfer application
• Patta passbook
• Assessment slip stating market value of property and charge ability of registration charges and stamp duty
• Main property deed etc.

You can also keep additional documents like non-encumbrance certificate, allotment letter, tax assessment certificate etc.

3. What is the population of Karur?

Ans. Currently, Karur has a population of 4,34,506. It is the 15^th most populated city in Tamil Nadu.