Guide for Sivakasi Residential Real Estate Investment

Sivakasi is a popular region in Tamil Nadu and a special municipal town in the Virudhunagar district. The region is widely popular as a fireworks producing centre in Tamil Nadu. With its industrial and agricultural opportunities, Sivakasi is considered one of the leading contributors to the state’s economy.

Apart from this, Sivakasi has a great climate condition which is also a very beneficial aspect of the popularity of this region. People find the moderate temperature of this place worth living. In addition, the place also has historical value and great tourist destinations. Keep scrolling to explore different residential real estate opportunities in Sivakasi.

Top Reasons to Invest in Residential Real Estate in Sivakasi

Investing in residential real estate in Sivakasi can be beneficial for the following reasons.

• Health Care System

One of the main reasons for investing in the residential real estate of Sivakasi is the growing healthcare system. The area has enough facilities to address different healthcare situations, so residents hardly find any problems in the healthcare sector. Both government and private hospitals in Sivakasi perform excellently in providing top-quality healthcare facilities to people. Thus, it is a great profitable point for investors as people will surely choose such a place with high-quality healthcare amenities for their living.

• Smooth Transportation System

Transportation in Sivakasi is also very updated and the government is very concerned about implementing a proper transportation system in this region. The public roads are well-built and connect different surrounding areas. In addition, the area has very low traffic congestion so local people hardly face any issues here. Furthermore, local transportation is also very frequent in this region.

Residential Real Estate Investment Opportunities in Sivakasi

Check out different locations where you can invest in residential real estate in Sivakasi:

• Sattur

Sattur is a locality in the Virudhunagar region in Sivakasi and is quite popular for many reasons. The locality is industry-based and there are several factories such as fountain-pen nib-making factories, steel rolling mills, etc. The place is also considered a great region for the cottage industry. In addition, the locality is well-connected and the regular life of people is quite well-balanced with quality infrastructure and other benefits. You can also find several options for investing in residential real estate in this region.

• Kallamanaickenpatti

This is also a residential area in Sivakasi and offers decent facilities to the local people. The area is quite progressive and education and transportation are also quite accessible here. Further, the region has several plots and residential projects under affordable ranges so investors can surely come here and explore the opportunities.

Things to Consider before Purchasing a Residential Property in Sivakasi

Here are some things that you should consider before you go for a residential real estate investment in Sivakasi:

• Locality

When going for a residential real estate investment, you should consider the locality first. Here you should check the availability of different facilities and confirm whether the area is suitable for your living. You should also check how accessible the education and healthcare facilities are in that particular area. Further, choosing your locality carefully will help you to find tenants easily and you can earn a great profit from the residential real estate investment.

• Connectivity

Connectivity is another important factor that you should check before you invest in any residential real estate property. If an area has a well-connected transport system, people will find the region perfect for commuting easily. Thus, they will choose to live in such places and eventually it will benefit the investors. So, they will have a great ROI on the value of their investments.

• RERA Verification

RERA verification is a must for every residential real estate investor as it will help them to know important information on several projects running in the state. RERA has been initiated by the Indian government to regulate the real estate sector properly without any misunderstanding between the buyers and real estate agents. To check the real estate guidelines of Sivakasi, you need to go to the TNRERA which is the official site of the Tamil Nadu state government, and find the necessary information accordingly.

Stamp Duty in Sivakasi

Stamp duty charges in Sivakasi are as follows:

Registration Charges in Sivakasi

The following chart shows the registration charges in Sivakasi.

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

As a popular destination for the cottage industry in Tamil Nadu, Sivakasi gets different beneficial assistance from the state government. For example, an ESIC medical college hospital of ₹ 150 crore is going to be started with high-quality infrastructure to give quality health assistance to the local people.

In addition, as Sivakasi is infamous for its developing industry of fireworks and matchboxes, the government has been taking helpful steps to ensure maximum growth of the industry down the line by formulating new strategies.

Further, the government is also taking measures to upgrade the lifestyle of local people, reaching proper facilities for them and helping them to live with sound health and happiness in this region. “Project Kanmani” is an example of this type of initiative.

Asset Classes vs Residential Real Estate 

The comparison between residential estate and other asset classes are mentioned below.

• Commercial Real Estate vs Residential Real Estate 

Commercial real estate is considered more profitable than residential real estate. But even though it can give better ROI, it does not offer any tax benefit. On the other hand, investors can enjoy tax benefits on residential real estate property investments, if it is bought via a home loan. Further, residential real estate does not have a high maintenance cost. In addition, it is easier for people to find tenants for residential properties.

• Bonds vs Residential Real Estate 

Residential real estate and bonds both are quite safe for beginners as well as experienced investors. Low-risk bonds are an excellent opportunity for investors to earn stable income without being affected by market volatility. Alternatively, residential real estate is also beneficial for getting a stable income without facing any potential loss and market volatility hardly affects this sector. But, the returns in this respect can be substantially higher. 

• Gold vs Residential Real Estate 

Investing in gold can lead you to a higher profit, however, the rising curve of returns is unstable. In addition, the rising value of gold denotes the fall in the price of paper money. Individuals can avoid this by investing in residential real estate, which provides a secure and stable source of passive income. 

• Stocks and Mutual Funds vs Residential Real Estate 

Mutual funds as well as stocks are highly volatile and they are regulated by the ups and downs of the share market. Thus, you can experience high profit, but simultaneously you won’t be sure about the loss that one may incur. At times, this loss can be huge depending on the market environment. On the other hand, residential real estate comes with relatively lower risks that acts as a secure source of passive income.

Here is a chart of comparison among the asset classes to help you to understand the distinguishing points more precisely.

If you want to invest in low-risk bonds you can explore the available options on our website and register now without any additional charges.

Steps to Invest in Residential Real Estate in  Sivakasi

Consider the following steps for a smoother investment process in residential real estate.

Step 1:  Finalise a budget that is easier for you to access before investing.

Step 2: Choose a few favourable locations and start researching them to get comprehensive ideas.

Step 3: Visit the selected locations physically so that you can have a clear picture of the amenities and features of the localities.

Step 4: Decide on a particular locality and check the RERA verification of the project site for a detailed insight.

Step 5: Make your payment and submit every document carefully during the transaction process.

Step 6: Consult a real estate agent if you need any further help.

Step 7: Finally, purchase an insurance cover for your property and ensure its safety in future.

Final Words

Thus, Sivakasi is a great place for living and earning a significant profit in the residential real estate sector. This area can offer you a lot and the standard of living is also quite upgraded. However, you should consider the RERA website before purchasing any property and consult trusted sources for guidance before starting your residential real estate career.

Frequently Asked Questions:

1. Do women get any special rebate on stamp duty charges in Sivakasi?

There is no rebate for women in the stamp duty charges in Tamil Nadu. So, women have to pay the same amount for any stamp duty charges similar to men.

2. What is the nearest airport to Sivakasi?

Madurai Airport is the nearest airport to Sivakasi. It operates domestic as well as international flights.

3. Why is Sivakasi called ‘Little Japan’?

Jawaharlal Nehru named Sivakasi “Kutty Japan” or “Little Japan” because of its potential in industries like fireworks, printing products, and matches production. These are also the industries commonly flourishing in Japan.

4. What is the population density in Sivakasi?

As per the census of 2011, the population density of Sivakasi was 737 per square kilometre. Its total population in the metropolitan region stands at 234,704.