Guide for Hospet Residential Real Estate Investment

Hospet is the largest city in Vijayanagara district in Karnataka. Hospet is the link that connects north and south Karnataka. Hampi situated in Vijayanagara district has been designated as a UNESCO World Heritage site. 

The nearest railway station is Hospet Junction railway station and the nearest airport is Jindal Vidyanagar airport. This city has a well-developed market area; additionally, it is also a well-known tourist destination due to its proximity to Tungabhadra Dam and Hampi.

Keep reading to understand how investing in residential real estate in Hospet might turn out to be a profitable venture. 

Top Reasons to Invest in Hospet Real Estate

Here are some of the reasons why you would want to invest in residential real estate in Hospet:

• Transportation

This city is well-connected with other parts of the country. It has a well-built railway station which links the city with Hyderabad, Bangalore, Hubli and other parts of the country. Hospet has a number of modes of transportation. 

City buses, auto rickshaws and taxis are easily available at any point of the day. Transportation is also reasonably priced here. This type of transportation is not only attracting more tourists here but more real estate investors as well.

• Education

This city also has a well-established education system. Schools like Kendriya Vidyalaya and PU College are also present here. A number of reputed colleges are also present that provide specialised education like Proudadevaraya Institute of Technology, Shri T A E Society Ayurvedic Medical College, etc. Therefore, people looking for a good locality to invest in residential properties can do so here and get great returns on their investments.

Residential Real Estate Investment Opportunities in Hospet

Mentioned below are some of the localities in Hospet that might be apt for residential real estate investment: 

• College Road

It is a really beautiful locality and is situated in close proximity to the highway. There are colleges, parks, Tungabhadra dam and several government buildings present in the locality. There are a number of convenience shops present in the locality. A number of hotels and restaurants are also present here. Rate of residential property in the locality ranges from around ₹2,917 to ₹5,000 per square foot.

• M.P. Prakash Nagar

This is a perfect residential area which is merely 4 km away from the city’s centre and the bus stand. The environment is calm and cool here. It is situated in the vicinity of Mahalakshmi temple. Banks and offices are nearby. There is hardly any crowd near the main road here. Rent of residential property in the locality can go as high as ₹25,000.

Things to Consider Before Buying a Residential Property in Hospet

Below are some of the points that you might want to keep in mind if you are planning to invest in residential real estate in Hospet:

• RERA Authentication

You need to mandatorily check whether the property that you are purchasing abides by the rules mentioned in RERA Act of 2016. The Real Estate Regulatory Authority Act was passed in 2016. This act led to the establishment of a Real Estate Regulatory Authority in every state. It is a statutory body that promotes accountability and transparency in India’s real estate sector. 

You can check whether your property in Hospet follows the rules of RERA if it is registered on the RERA Karnataka website.

• Water and Power Supply

One of the first things that you should check before purchasing a property is the water and power supply in the locality. A lavish house will not provide you comfort if there is a scarcity of water and frequent power cuts. This might be extremely problematic in case you choose an independent house as there will not be any power backup and inverters will not be able to take up load for long hours.

Stamp Duty in Hospet, Karnataka

Payment of stamp duty is an integral part of property transactions in every state. Let us check out the rate of stamp duty applicable in Hospet, Karnataka:

Registration Charges in Hospet, Karnataka

Payment of registration charge in Karnataka ensures that property transaction is duly registered in government records. Rate of registration charge applicable in Hospet, Karnataka is as follows: 

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

Hospet is going through a developmental phase – ₹100 crore is being spent for conversion of Hospet’s 100-bed hospital to a 250-bed facility; 30 acres of land will be utilised for construction of this 250-bed hospital which will also get the status of a medical college. 

Development will also take place in education as well. 750 acres of land of Hampi Kannada University will be used for opening a central university. ₹18 crore will be utilised for construction of a road from Tungabhadra Reservoir Circle to Valmiki Circle. 

Construction of railway overbridge will also take place near Ananthashayana Gudi. Other development activities include construction of a film city, indoor outdoor stadium, digital library, high schools and junior colleges. 

All these development activities are sure to impact the real estate sector of Hospet to a large extent. This is definitely a golden opportunity for residential real estate investors. 

Residential Real Estate vs Other Asset Classes

Let us take a look at the comparison between residential real estate and other asset classes on the basis of various parameters: 

Residential Real Estate vs Bonds

Real estate investments offer much better returns if you compare them with bonds; however, real estate is much more risky and volatile. Residential real estate investment also offers tax benefits. 

However, if you are looking to generate stable returns, consider investing in bonds. It is a low-risk asset that has low credit risk and high liquidity. Register on our website today and invest in the top-rated bonds available in the market without any additional charges.

Residential Real Estate vs Stocks & Mutual Funds

Real estate investment offers much more stable returns than stocks and mutual funds. However, stock and mutual fund investments tend to offer higher returns. 

Real estate is much less volatile in comparison to stocks and mutual funds as the returns for the latter heavily depend on market fluctuations. Additionally, residential real estate investment also offers tax benefits if the property is availed on a home loan. 

Residential Real Estate vs Gold

Real estate lets you generate income every month which is not possible in case of gold. Gold is however more liquid than real estate. While gold is suitable for both long term as well as short-term investment, real estate is only apt for long term investment as the price of a property appreciates in the long term. 

Residential Real Estate vs Commercial Real Estate

Residential real estate requires less amount of investment when compared to commercial real estate. It is easier to find a tenant in case of residential real estate and the entire process is much simpler. In case you purchase a residential property via a home loan, you can avail tax benefits. 

However, if you talk about returns, commercial real estate investment is a much better option. 

Here is a tabular representation of comparison between different asset classes as per the returns, liquidity, risk, volatility and ticket size of each asset class:

Steps to Invest in Residential Real Estate in Hospet

Mentioned below are the steps that you can follow if you are interested to invest in residential real estate in Hospet:

Step 1: Set your investment budget. 

Step 2: Make a list of all the locations which might be suitable for residential real estate investment. 

Step 3: Consult a broker and along with them visit every location that is on your list to check whether the property and its documents are all authentic. 

Step 4: Finalise a property after assessing it in terms of infrastructure and amenities available nearby. 

Step 5: Prepare the necessary documents to go ahead with the purchase. 

Step 6: Complete the payment process. Make sure to pay the required stamp duty and registration charges. 

Step 7: Finally, in order to safeguard your property from any type of damage, you can opt for an insurance policy to remain prepared for any type of emergency. 

Final Word

All the development that is taking place in Hospet for the past few years is really working wonders in transforming it into a residential real estate hub. However, a lot of development is yet to take place; therefore, investing in residential properties today will help in earning great returns on investment in future as the value of the properties will keep appreciating. 

Frequently Asked Questions