Raipur is the state capital of Chhattisgarh. It is the 6th cleanest city in the country. The city also ranks 7th amongst 111 other cities in the country with a population of more than 1 lakh in the Ease of Living Index in Central India in 2022.
It is a major industrial and commercial hub. The Gross District Domestic Product of Raipur was ₹11,74,350 lakh in 2006-07. Some of the major industries here are steel, coal and aluminium. Thus, there are ample employment opportunities in this city.
Raipur is well-connected to other cities and towns across the country via road, rail and air. It has world-class infrastructure and amenities. There are numerous hospitals, banks, and educational institutions in this city. The city has a literacy rate of 85.95%, which further indicates the educational facilities in Raipur.
Continue reading to explore the opportunities and benefits of investing in residential real estate in Raipur.
Top Reasons to Invest in Raipur Real Estate
Some of the significant factors which make Raipur an ideal city to invest in are given below:
- Transportation and Connectivity
Raipur is well-connected by roadways to the cities and towns of the state as well as the different regions of the country. The NH-6 connects Raipur to important cities like Nagpur, Sambalpur and Kolkata. NH-43 links this city to Vishakhapatnam. NH-200 connects it to Bilaspur, Deogarh, Raigarh and Talcher. NH-217 and NH-12A further link Raipur to other cities and towns in the country. The Asian Highway 46 also passes through Raipur.
Raipur is also an important railway junction. Coming under the South East Central Railway Zone, the railway lies between the Mumbai and Kolkata railway lines. Thus, numerous important trains pass through this railway station.
Furthermore, the Swami Vivekananda Airport is only 15 km from the city. It links Raipur to all the major cities of the country.
- Educational Hub
Raipur is one of the most important educational hubs in the country. The city boasts numerous world-class educational institutes.
There are several institutes of engineering and technology which define the parameters of educational quality in India. Some of them are the Indian Institute of Technology (IIT), Bhilai Institute of Technology, International Institute of Information Technology and National Institute of Technology (NIT).
Apart from these institutes, there are other notable educational institutions in Raipur like the All India Institute of Medical Sciences (AIIMS), Indian Institute of Management (IIM), Kalinga University and Hidayatullah National Law University.
The presence of these educational institutes leads to a large inflow of students, which increases the rental prospects of residential real estate in the city.
Residential Real Estate Investment Opportunities in Raipur
Here are some prominent residential localities in Raipur where you can profitably invest in residential real estate:
- Shankar Nagar
Shankar Nagar is a prominent residential and commercial locality in Raipur. It is near Talibandha railway station and Swami Vivekananda airport, thus providing excellent connectivity not only with the other parts of the city but also with other cities and towns of the country.
Shankar Nagar has numerous hospitals and healthcare centres like Sai Kalyan Hospital, Sparkle Hospital and Shri Anant Sai Hospitals. Additionally, there are 16 schools near this location.
Apart from the infrastructure and amenities in this locality, there are also adequate opportunities for recreation and entertainment. This includes 8 shopping malls and more than 50 restaurants and food joints in the area. The average property price in this locality is ₹3,700 per sq. foot.
- Naya Raipur
Naya Raipur is another locality where you can buy a home or purchase a residential property for rental purposes. The locality is close to 10 bus stops and is located near the Raipur airport.
This locality has the requisite infrastructural facilities that anyone investing in residential property might require. There are several healthcare centres nearby like Sadbhavna Hospital. Furthermore, this place also has several schools like KPS International School. This area has two shopping plazas and several restaurants.
Things to Consider Before Buying a Residential Property in Raipur
You should keep certain factors in mind while choosing a residential property in Raipur:
- Development and Infrastructure
One of the most important factors to consider while buying a residential property is the development of the locality and the infrastructure and amenities available in the area.
Always look for a property in a prime location of the city. A developed residential location should have standard hospitals, educational institutions as well as other amenities available nearby.
The development and infrastructure of an area not only decide the quality of life that you can lead there but also influences the rental prospects and the resale value of a property.
- RERA Authenticity
The enactment of the Real Estate and Regulatory Authority Act, 2016 led to the formation of a RERA body in each Indian state. The main purpose of this body is to maintain transparency and authenticity in the real estate business.
Before investing in a residential property in Raipur, you can visit the Chhattisgarh RERA website. Check in the website portal whether the property that you are planning on buying and the builder who has constructed are genuine or not.
Stamp Duty in Raipur, Chhattisgarh
Given in the table below are the stamp duty charges in Raipur:
|Category||Stamp Duty Rates|
|Joint (Male + Female)||4%|
Registration Charges in Raipur, Chhattisgarh
Here is a table which provides the registration charges levied on residential properties in Raipur:
|Joint (Male + Female)||4%|
Residential Real Estate Sector in Raipur: What’s the Forecast?
The Chhatisgarh government has already resumed work on the infrastructure development projects in Raipur. According to the state-published Raipur Development Plan 2031, 75% of the entire area of Raipur will be developed while the rest has been kept for infrastructure and welfare development projects.
Apart from, these, the government is also taking up various developmental projects to improve the transportation infrastructure of the city. There are constant efforts to complete the Raipur-Bharatmala scheme which will provide better transportation linkage. Additionally, Narendra Modi recently laid the foundation of a 6-lane Greenfield Raipur-Vishakhapatnam Economic Corridor.
Furthermore, the Chhattisgarh government has decided to reserve land for the construction of a 2nd runway at Raipur airport.
Given the rapid rate of development taking place in Raipur, the city is witnessing a massive real estate boom.
Residential Real Estate vs Other Asset Classes
Before you decide on investing in residential real estate, go through the comparison between the pros and cons of residential real estate investment and other asset classes:
- Residential Real Estate vs Commercial Real Estate
Commercial properties can get you higher returns than residential real estate investments. However, since it is easier to find tenants for residential property, it has a higher rental potential than commercial real estate. Furthermore, investing in residential real estate can get you some tax benefits, something which you cannot avail in the case of commercial real estate investments.
- Residential Real Estate vs Stocks and Mutual Funds
Stocks are a highly volatile investment option. The returns fluctuate as per market conditions. Although residential property cannot bring you as high returns as that from stocks, it is a much safer option for investment.
- Residential Real Estate vs Gold
Residential real estate can get you higher returns than gold investments. However, gold has higher liquidity than residential real estate. Thus, it is ideal to invest in residential properties if you are having a mid to long-term investment plan.
- Residential Real Estate vs Bonds
Both of these asset classes can get you stable returns. However, bonds involve a lower credit risk than residential real estate investments. Bonds also have higher liquidity.
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Here is a table that compares the different asset classes based on returns, liquidity, risk, volatility and ticket size:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Raipur
Here are some of the steps that you can follow to invest in residential real estate:
Step 1: Finalise your investment budget.
Step 2: Conduct online research on the best sites in terms of the overall development and rental income potential.
Step 3: Select some properties and visit them. Examine the infrastructure and amenities available in the area.
Step 4: Once you decide on a property, prepare the required documents of ownership like the title deed, sale agreement, allotment letter and possession letter.
Step 5: Complete the payment process. Pay the required stamp duty and the registration charges to become the legal owner of the property.
Raipur is one of the fastest-growing cities in the country. With increasing infrastructural advancement, the demands for residential real estate are bound to grow.
Some of the major reasons why Raipur is increasingly becoming an attractive destination for residential real estate investment are the high returns on investment, good transportation system, employment opportunities and the affordability of the city.
Thus, Raipur can be the ideal residential real estate investment destination for you. You can also take the help of a real estate agent to choose the right property for you.
Frequently Asked Questions
Should I get home loan insurance for residential property?
Home loan insurance, in simple terms, is the insurance on the home loan taken by a debtor. In case you fail to repay the home loan, the home loan insurance covers the responsibility to repay the home loan. You can get home loan insurance; however, make sure to assess the loan documents carefully.
What is a sale deed?
A sale deed is a legal document which records the transfer of a property from the seller or the builder to the buyer.
What is stamp duty?
A stamp duty is a legal tax imposed by the state government on the purchase of a property. It is mandatory to pay the stamp duty to become the legal owner of the property.
What are the other localities in Raipur where I can buy a residential property?
In addition to Shankar Nagar and Naya Raipur, some of the other areas where you can invest in residential real estate are Old Dhamtari Road, Mowa, New Dhamtari Road, Kamal Vihar and Kota Colony.