Guide for Vellore Residential Real Estate Investment

Vellore is the administrative centre of the district of Vellore in Tamil Nadu. The 3rd most populous district in Tamil Nadu (after Chennai and Kanchipuram) is a wonderful concoction of tourist attractions, renowned hospitals, and old forts.

The Central and State Government’s investment in infrastructure has expanded the market for real estate in various Tier 2 cities across the country including Vellore. Vellore is home to various industries, schools, colleges and reputed medical facilities. The city also enjoys robust transport connectivity via developed railways, roadways and airways. Vellore has recently become a hotbed for real estate investment. Learn more about real estate investment opportunities in the sections below. 

Top Reasons to Invest in Residential Real Estate in Vellore

Here are some of the reasons why your real estate investment has great growth opportunities in Vellore: 

  • Educational & Employment Hub

The city is well known for its elite technological and medical institutions, including Christian Medical College and Hospital and Vellore Institute of Technology. Moreover, it is home to hundreds of tanneries and is one of the most notable producers of finished leather goods. In addition Vellore houses various industrial units that contribute significantly to the economy of the district and the state. 

  • Excellent Transportation 

Vellore is well connected to other parts of Tamil Nadu and the country via roadways and railways. The NH-46 (Bangalore-Chennai route), NH-4 (from Ranipet to Chennai), and Cuddalore-Chittoor are national highways that pass through Vellore. With efficient private and government bus services, Vellore is connected to important cities in the states of Tamil Nadu, Andhra Pradesh, and Karnataka. In Vellore, there are two bus terminals: The Central Bus Terminus, which is next to the CMC Hospital, and the Town Bus Terminus (under Vellore Municipal Corporation).

The nearest airport is the Chennai International Airport and Tirupati International Airport. 

Investment Opportunities in Residential Real Estate in Vellore

These localities in Vellore have high demand and growth in residential real estate investment: 

  • Ranipet 

Ranipet is a well-known industrial hub and neighbourhood in Vellore. It comes with excellent connectivity. The two highways in the area are NH75 and NH132B. The adjacent cities include Arcot, Vellore, Sholingur, and Tiruvethipuram. In this area, you will find all kinds of amenities like hospitals, banks, schools ATMs, restaurants, etc.

  • Walajapet 

Walajapet is situated in the Walajapet Block of Tamil Nadu’s Vellore District. The closest cities include Arcot, Sholingur, and Tiruvethipuram. The two adjacent highways are NH48 and NH132B. This location has various hospitals, schools, colleges, and other amenities. It is close to Vellore as well as Chennai by road. 

Things to Consider before Investing in a Residential Property in Vellore

You should consider the following few pointers before investing in residential properties in Vellore: 

  • Return on Investment 

The long-term gain and appealing ROI are two of the most widely used justifications for real estate investing. The ROI is the most important thing to take into account when looking to purchase real estate as an investment. Set your expectations for earnings before investing in real estate, as this will assist you to select the type of property to buy.

  • RERA Authentication 

The RERA Act was passed in 2016 to safeguard property buyers from fraud. As a buyer, it is crucial to assess the developer’s background, track record of keeping to commitments, and reliability before making a property purchase.

By checking the RERA number and date provided on government website, you can find the specifics of your preferred property on the Tamil Nadu RERA website. This will help you to verify the authenticity of the property and credibility of the developer. 

Stamp Duty in Vellore

The table below lays down the stamp duty details applicable for residential properties in Vellore, Tamil Nadu. 

Type of Property Document/ DeedApplicable Stamp Duty 
Exchange 7% on the market value of greater-value property
Gift 7% on property market value
Conveyance/Sale7% of property market value
Mortgage with possession4% on the loan value
Simple Mortgage1% on loan value (up to ₹40,000)
Sale Agreement₹20
Building Construction1% of consideration as stated in the agreement or on construction value, whichever is greater
Partition in family1% of market value (up to ₹25,000 for each share)
For selling immovable property, a general power of attorney (POA)₹100
Partition among non-family members4% on property market value ( in case of separated shares)
For selling movable property for other usages, general POA₹100

General POA,  for consideration 
4% of the consideration

Registration Charges in Vellore, Tamil Nadu

Find out registration charges and details in Vellore, Tamil Nadu in the following table: 

Type of Property Document/ DeedApplicable Registration Charges  
Exchange 4% on the market value of higher-value property
Gift 4% on property market value
Conveyance/Sale4% of property market value
Mortgage with possession1% on loan value (up to ₹2 lakhs)
Simple Mortgage1% on loan value (up to ₹10,000)
Sale Agreement1% on advance money (if possession is allowed, then 1% on total value)
Building Construction1% of consideration as stated in the agreement or on construction value, whichever is greater
Partition in family1% of market value (up to ₹4000 for each share)
For selling immovable property, a general power of attorney (POA)₹10,000
Partition among non-family members1% on property market value ( in case of separated shares)
For selling movable property for other usages, general POA₹1000

General POA,  for consideration 
1% of ₹10,000 or on consideration, whichever is greater

Vellore Residential Real Estate Sector- What’s the Forecast?

Vellore is one of Tamil Nadu’s top Tier 2 cities. This city has always been popular for multiple reasons. It is a top tourist spot and a cultural hub. 

There have been much infrastructural development in this city. IndiaMART has recently declared that it will open 4 new offices in 4 different cities in Tamil Nadu, among which is Vellore. Also, Katpadi, in Tamil Nadu’s Vellore district, has emerged as India’s fastest-growing digital payments city. Additionally, Tamil Nadu CM M. K. Stalin has allotted ₹2,400 crore for classroom development in this city. 

Residential Real Estate vs Other Asset Classes

This section shows the comparison between residential real estate and other well-known asset classes:

Residential Real Estate vs Stocks and Mutual Funds

Mutual funds and the stock market are unpredictable. As a result, making smart investment decisions is necessary if one wishes to achieve substantial stock market profits. Although you can get higher profits, the investment returns will be impacted by market volatility. Residential real estate, however, is less risky and generates consistent revenue.

Residential Real Estate vs Commercial Real Estate

Profits from commercial real estate are higher than those from residential estates. Finding occupants for residential properties is, however, frequently easier than for commercial ones. Investments in residential real estate could also offer certain tax benefits.

Residential Real Estate vs Bonds

Residential real estate and bonds both provide excellent passive income. Even though residential real estate offers a better return on investment, bonds offer steady income. Also, just like gold, bonds have a liquid market.

Residential Real Estate vs Gold

Residential real estate is excellent for fantastic long-term investment. Gold is more liquid and appropriate for both short and long-term investments. But residential real estate investments can be more profitable than gold as they can offer comparatively higher return.

The following table compares the costs, volatility, swings, and liquidity of the above-mentioned asset types.

ParametersResidential Real EstateStocks & Mutual FundsGoldCommercial Real EstateBonds
LiquidityLow High High Low Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High LowLow Low 
Ticket SizeHigh Varies LowHighVaries 

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Steps to Invest in Residential Real Estate in Vellore

You can invest in residential real estate in Vellore by following the given steps: 

Step 1: Decide a budget and shortlist a few properties. Conduct on-site research on the shortlisted properties.  

Step 2: Speak with real estate brokers, to assess the growth prospects and property values of the neighbourhood. 

Step 3: After deciding on a property, invest following the RERA regulations.

Step 4: Follow all the steps and make the necessary payments to have the property transferred into your name. You must pay the broker if you hired their services.

Final Word

Vellore offers excellent educational and employment opportunities. Additionally, joint efforts of State And Central Governments are making Vellore stand out from other tier 2 cities and it is already on its way to becoming a Smart City. Investing in residential real estate properties now can yield substantial returns in the future. 

Frequently Asked Questions

What was Vellore previously known as?

In 1996, the North Arcot Ambedkar District changed its name to Vellore District. The district was divided into Vellore, Tirupattur, and Ranipet districts on August 15, 2019.

Which city is the richest in Tamil Nadu?

The district of Kanyakumari, which is in the furthest south of Indian territory, is the richest city in Tamil Nadu in terms of per capita income and leads the state in terms of the Human Development Index (HDI), education, and literacy.

Which are the best places for student accommodation in Vellore?

Senur, Sevur, Modur, or Perumugai are your best options for living in terms of convenience and budget if you’re looking for student accommodation close to VIT University or CMC Vellore.

What are the different types of real estate available in India?

There are 4 different types of real estate available in India. These are residential real estate, industrial real estate, commercial real estate, and land investments.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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