Naihati is a city situated on the bank of River Hooghly in the North 24 Parganas district of the Indian state of West Bengal. The area has highly developed infrastructural facilities with hospitals, police stations, education centres, post offices, etc., nearby to the residence area. It also has great transportation system in the form of buses, auto-rickshaws, ferries, etc., making it more favourable for residential real estate investment.
Additionally, due to the massive employment opportunities available in this location, especially for its jute mills and thermal power station, more people are migrating here, creating more demand for real estate.
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Top Reasons to Invest in Residential Real Estate in Naihati
The primary reasons for investing in residential real estate in Naihati, West Bengal are as follows:
- Employment Opportunities
Naihati is an industrial hub with jute mills and thermal power stations, which generates multiple employment opportunities throughout the year. This is a major reason for people to migrate to Naihati, which is increasing the demand for residential real estate.
- Developed Infrastructure
The entire region of Naihati has all infrastructural facilities like hospitals, schools, colleges, marketplaces, etc. It also has places for entertainment purposes and relaxation. Moreover, all these places are near to the residential area, making accessibility easier for people.
Residential Real Estate Investment Opportunities in Naihati
The best localities for residential real estate investment opportunities in Naihati, West Bengal are as follows:
- Mitrapara
Mitrapara in Naihati is one of the best places to invest in due to its connectivity facilities. The area is right beside the Naihati railway station, making it easier for people to facilitate railway services. The Naihati Station Road also passes through this area.
- Bijay Nagar
Bijay Nagar is another ideal place for investing in residential real estate for its developed infrastructure and quick accessibility to hospitals, marketplaces, etc. Being in the other half of Naihati, it also provides great connectivity through the Barrackpore-Kalyani Expressway.
Things to Consider Before Buying a Residential Property in Naihati
The main things to consider before purchasing a residential real estate property in Naihati, West Bengal are as follows:
- RERA Verification
For checking the authenticity of a real estate property and its builder, it is necessary to visit the RERA website of West Bengal. It is a statutory body regulated by the RERA Act 2016, which aims to promote transparent and reliable real estate business between agents and their buyers.
- Locational Infrastructure
While purchasing a real estate property, it is also important to check the infrastructural facilities it is providing to the residents around it. A residential property with basic amenities and developed infrastructure will make your life easy through the quick availability of services.
Stamp Duty Rates in Naihati, West Bengal
The stamp duty rates you need to pay after purchasing a real estate property in Naihati, West Bengal are as follows:
| Location of the Property | Stamp Duty Rates | |
| For property worth ₹25 lakhs and below | For property worth ₹25 lakhs and above | |
| Corporation Area (Kolkata and Howrah) | 6% | 7% |
| Municipal Corporation Area | 6% | 7% |
| Areas that do not fall under the above two categories | 5% | 6% |
Registration Charges in Naihati, West Bengal
The registration charges you need to pay after purchasing a real estate property in Naihati, West Bengal are as follows:
| Location of the Property | Registration Charges |
| Corporation Area (Kolkata and Howrah) | 1% |
| Municipal Corporation Area | 1% |
| Areas that do not fall under the above two categories | 1% |
It is necessary to consider these rates of stamp duty and registration before making your investment budget as they will be a major part of your total investment amount.
Naihati Residential Real Estate Sector: What’s the Forecast?
By the end of FY 2022-23, it is expected that the entire state of West Bengal will witness a growth of 40% to 42% in real estate sales. This estimation was drafted after getting an increase of 40% to 45% in real estate sales for FY 2021, despite the Covid-19 hit. All this created a positive effect on the real estate sales of all places in the state, including Naihati.
The state government has also provided a 10% reduction in circle rate and a 2% reduction in stamp duty to further boost the real estate sector.
Residential Real Estate vs Other Asset Classes
The difference between residential real estate and other asset classes like stocks, mutual funds, bonds, gold, etc., are as follows:
- Residential Real Estate vs Stocks & Mutual Funds
In case of stocks and mutual funds, the fluctuation rate is higher than in residential real estate, which is why it becomes difficult for investors to estimate the returns. However, residential properties offer more secured returns than stocks and mutual funds and also provides direct asset ownership.
- Residential Real Estate vs Gold
Residential real estate investment offers tax benefits and passive income, whereas gold has higher volatility and risks of being stolen. However, gold is a less turbulent and safer investment option, whereas residential real estate brings mental satisfaction with future security.
- Residential Real Estate vs Commercial Real Estate
The vacancy risks for residential properties are higher in comparison to commercial estate with the given frequent turnover of tenants. However, residential real estate has higher rental prospects than commercial spaces, although it needs to be leased annually.
- Residential Real Estate vs Bonds
Bonds have a lower credit risk than residential real estate investments; moreover, bonds are highly liquid investment options. Liquidity of residential properties is tough to come by due to the high transaction costs and the long time it takes to find a suitable property buyer.
A table representing the difference between the various asset classes in terms of returns, liquidity, risk, volatility and ticket price is as follows:
| Parameters | Residential Real Estate | Gold | Residential Real Estate | Stocks & Mutual Funds | Bonds |
| Returns | High | Moderate | Moderate | High | Moderate |
| Liquidity | Low | High | Low | High | Moderate |
| Risk | Low | Low | Low | High | Moderate |
| Volatility | Low | Low | Low | High | Low |
| Ticket Size | High | Low | High | Varies | Varies |
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Steps to Invest in Residential Real Estate in Naihati
The different steps for investing in residential real estate in Naihati, West Bengal, are as follows:
Step 1: Estimate your investment budget.
Step 2: Conduct market research on potential sites that are developing.
Step 3: Shortlist some affordable sites or take the help of an agent to get the best deals.
Step 4: Plan a field visit to the shortlisted sites and analyse them minutely.
Step 5: Once you finalise a residential real estate property, prepare all the official documents
Step 6: Complete the payment process. Make sure to complete the registration charge and stamp duty formalities.
Final Word
The demand for residential real estate in Naihati is witnessing positive changes due to the gradual development in the fields of infrastructure and connectivity. With amenities like 24×7 electricity, clean water, a good transport system, nearby hospitals and a marketplace, etc., more people are now interested to invest here. Although it is a nice place to stay, it is still advisable to undergo complete research before investing in any housing property here.
Frequently Asked Questions
What are the various methods of paying registration and stamp duty charges in West Bengal?
The different methods of paying registration and stamp duty charges in West Bengal are cash, bank transfer, cheque, pay order, demand draft, and RTGS/NEFT. However, it is still recommended to contact the respective e-stamp centre before initiating any kind of payment.
Are there any tax benefits available for purchasing a real estate property in West Bengal?
Yes, there are tax benefits available on stamp duty and registration charges if you purchase a real estate property in West Bengal. This tax deduction comes under Section 80C of the Income Tax Act 1961, providing a maximum deduction of ₹1.5 lakh.
Which properties are exempted from stamp duty and registration charges in West Bengal?
If a real estate area or land is purchased by any Government department, then it is exempted from paying both registration and stamp duty charges. Other than this, no other property, whether domestic or commercial, is exempted from such charges.
Is it possible to check the market value of properties in West Bengal?
Yes, it is possible to check the market value of real estate properties in the state of West Bengal. For this, you have to go to the Homepage of the West Bengal Registration website and then click on the Calculator option. After this, following the steps as per your requirement will show you the market value of the respective properties.