Kakinada, located in Andhra Pradesh, is the sixth-largest city in India. The city is known for being well-planned and having a picturesque outlook. Over the years, it has developed as a popular residential area. Its pleasant weather conditions, delicious food, and local amenities have attracted residents.
As of 2023, the Census 2011 to 2023 reports that Kakinada has a population of 430,000. This shows its popularity as a residential area. It is well-connected to different states of India through National Highway 216. Additionally, its transport is rich through the Vijayawada Railway Division and Rajahmundry Airport.
Keep reading to get a detailed guide to Kakinada’s residential real estate sector.
Top Reasons to Invest in Residential Real Estate in Kakinada
If you are wondering whether investing in Kakinada’s real estate sector will be beneficial, here are the top reasons for doing so.
- Smart City & Commercial Hub
Kakinada is developing as one of the few smart cities in India. There is a Software Technology Parks of India (STPI) facility here, which helps it come under the tier II cities of India. Moreover, it is the home to 35 software and IT enterprises, like Krify, Avineon, Primesoft, etc. Exports and imports are largely increasing here across industries of rice, automotive parts, oil mills, fish, etc.
- Local Amenities
Residents can find great local amenities in this area. For instance, there are various educational institutions like Jawaharlal Nehru Technological University and Rangaraya Medical College. Moreover, there are hospitals like Apollo, Trust Hospital, etc. Furthermore, it is a great tourist spot with mangrove forests and wildlife sanctuaries.
- Transport & Connectivity
Kakinada has great connectivity across India through roads like NH 216 and its efficient transport facilities. Auto rickshaws are commonly available across the city. The two railway stations are Kakinada Town and Kakinada Port. Moreover, it is located on the shore of the Bay of Bengal, which develops transportation through the waterways. The National Waterway 4 helps connect Kakinada with Pondicherry.
Residential Real Estate Investment Opportunities in Kakinada
Knowing the areas that are best for residential real estate investment in Kakinada is essential. Here are some of the most popular places you can check out for investment opportunities in Kakinada’s residential real estate sector.
- Gandhi Nagar
Sprawling over 2 km, it is one of the main residential areas of Kakinada. It is mainly known for having multiple shops for stationery, household appliances and food items. It offers amenities like banks, schools and colleges. For instance, you will find the International Delhi Public School, Green Field School, Pragati Junior College, etc., near this place. A 2 BHK apartment starts from about ₹ 26 lakhs here.
This is a residential area in Kakinada, mainly known for its connectivity. It is a junction with four roads, which help connect to different parts of AP. Moreover, you will find famous temples like Venkateswara Swamy Temple in this area. Schools and colleges like Honey Dew, Sri Chaitanya School, Rajiv Gandhi Institute Of Management & Science, etc., are located here. A 2 BHK apartment starts from ₹ 32 lakhs here.
Its close proximity to Kakinada’s IT offices has attracted residents employed in these areas. There is a good vegetable and fish market in the locality. Moreover, you can find amenities like City Multispecialty Hospital, Subha Niketan School and Mohan Junior College here. A 2 BHK apartment generally starts from ₹ 32 lakhs in Ramanayyapeta.
- Ranga Rao Nagar
Located near the East Godavari district, Ranga Rao Nagar has developed as another popular residential area of Kakinada. It has good transport facilities, as Kakinada Town Junction Railway Station and APSRTC Bus Station are close. You will find Lotous International School, Sri Prakash Synergy School, Aditya College Of Nursing, Gandhi Centenary B. Ed. College, etc. A 2BHK apartment starts from ₹ 44 lakhs.
- Ashok Nagar
It is another important residential area in Kakinada, mainly known for housing the Andhra bank area and Kamalveer theatre area. These fulfil the shopping and entertainment needs of the residents. You will find Santhi Nikethan Public School and M.S.N Public School here, along with the Shirdi Sai Baba temple. Generally, 2 BHK apartments start from ₹ 49 lakhs in this area.
Things to Consider Before Investing in a Residential Property in Kakinada
There are certain things to consider if you are planning to invest in the real estate properties of Kakinada. Here are a few of them to help you make the right decision.
Some areas in Kakinada are yet to develop fully. The amenities might not be as good in these areas. Schools and colleges might be located at a larger distance. Thus, make sure to check the area and look for amenities before finding residential properties in such places.
- Local Environment
Being a fast-growing urban city, Kakinada sometimes faces issues of pollution and traffic. Some commercial areas particularly face this issue. You should try to avoid finding residential properties around such areas. A highly polluted environment cannot be good for long-term residence. The local environment should also be fit for daily commutes.
You must fix a budget and plan accordingly when finding a residential property. This is mainly because, as a smart city, Kakinada might have high prices for residential properties in some parts. Without a fixed budget, you can end up overspending in this environment, leading to financial loss.
- RERA Registration
The Real Estate Regulatory Authority (RERA) is an attempt of the Indian Government to ensure fair and transparent transactions between buyers and sellers of real estate properties. Every property should be registered under RERA as per law. Thus, check the website of RERA Andhra Pradesh to ensure that the chosen property is authentic.
Stamp Duty in Kakinada
Buyers must pay certain stamp duty charges while purchasing real estate properties. Here are the charges you need to pay when buying a property in Kakinada.
|Transaction Type||Stamp Duty|
|Lease agreement for less than 10 years||0.4%|
|Lease agreements for 10-20 years||0.6%|
|Agreement of sale-cum-GPA||6%|
|Immovable property sale||5%|
Registration Charges in Kakinada
The registration charges are also mandatory when purchasing a property. Here are the charges in Kakinada.
|Transaction Type & Instruments||Registration Charge|
|Settlement||0.5% (Minimum of ₹ 1,000 and maximum of ₹ 10,000)|
|Agreement of sale & a general power of attorney||₹ 2,000|
|Release||0.5% (Minimum of ₹ 1,000 and maximum of ₹ 10,000)|
|Development agreement & a general power of attorney||0.5% (Maximum of ₹ 20,000)|
|Power of attorney||0.5% (Minimum of ₹ 1,000 and maximum of ₹ 20,000)|
|Agreement to construct, develop or sell immovable properties||0.5% (Minimum of ₹ 1,000 and maximum of ₹ 20,000)|
|Power of attorney to construct, develop, sell or transfer immovable properties||0.5% (Minimum of ₹ 1,000 and maximum of ₹ 20,000)|
|Deposit of title deed||0.1% (Maximum of ₹ 10,000)|
|Release of Deposit of Title Deeds||₹ 1,000|
|Certificate of sale||0.5%|
Kakinada Residential Real Estate Sector-What’s the Forecast?
The real estate sector of Kakinada is improving and growing gradually. As of March 2022, the Andhra Pradesh real estate sector has increased by about 35% from the previous year. The price of real estate has also dropped slightly. Currently, it costs about ₹ 2,083 to ₹ 4,976 per sq. ft. Despite a high registration fee, the country’s real estate sector is booming.
Kakinada is specifically significant for residents in AP. Various upcoming projects are in line, including Nagadevara Gardens, VVR Dharani, Ajjarapu Homes, etc. As the city became a smart city, it saw a sudden growth in the number of RERA registration for real estate projects. Moreover, with its upcoming list of IT offices, the real estate business will have a bright future.
Residential Real Estate Vs. Other Asset Classes
Now, you must be curious to know why investing in residential real estate can be more profitable than that of other assets. Here is a quick comparison of residential real estate with other classes of assets to help you out.
- Residential Real Estate vs Gold
Gold is often considered the most valuable metal in India. People mainly purchase it to prepare accessories and jewellery items. It also serves as an asset in times of need, as its price is growing rapidly. Moreover, there is a possibility to easily liquidate the returns. The only problem is the number of returns, which can never be as high as real estate properties.
- Residential Real Estate vs Commercial Real Estate
Commercial real estate properties are important for those running their businesses. They naturally generate better returns and offer better tax benefits than residential real estate properties. However, due to the high rents and tax requirements, finding suitable tenants for commercial real estate properties is challenging.
- Residential Real Estate vs Stocks & Mutual Funds
Stocks and mutual funds are powerful investment instruments. These are known for yielding high returns. However, the risks of investing in these are always high. Mutual funds are volatile and subject to market risks. Fluctuations in the economy affect the returns largely. On the other hand, residential real estate properties are less risky.
- Residential Real Estate vs Bonds
Bonds are also a reliable investment instrument. They ensure a consistent rate of returns irrespective of market risks and fluctuations. This reduces the risks of losing returns. The benefits are, therefore, similar for both bonds and residential real estate properties.
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If you are still unsure, check out the following table for a clearer comparison between different asset classes.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Kakinada
The following steps will guide you through the process of investing in residential real estate properties in Kakinada.
Step 1: Fix a budget for your ideal residential property. Conduct research into the real estate sector of Kakinada.
Step 2: Shortlist some properties based on your requirements. Compare them to check their price and the offered amenities.
Step 3: Visit the locations of the shortlisted properties. Inspect the areas and gain real-time reviews from the neighbours.
Step 4: Discuss with a professional broker and finalise your choice. Contact the seller and assess all the documents.
Step 5: Consult a lawyer and complete all the payments, including stamp duty and registration charges. Collect documents like sale deeds and title deeds.
Step 6: Secure your property with an insurance policy.
Thus, as you can see, Kakinada is an exceptional residential real estate investment area. It is one of the fastest-growing cities in Andhra Pradesh and has slowly developed as a commercial hub. Its efficient transport facilities and proximity to important IT offices make it just the perfect place to live.
Frequently Asked Questions
Which is the best residential area of Kakinada to reside with family?
Gandhi Nagar and Ramanayyapet can be two ideal residential areas if you are planning to settle with a family. They offer a calm environment with amenities.
Is real estate expensive in Kakinada?
Real estate prices are growing in Kakinada because of its development as a smart city. As of now, the price is affordable, which starts from ₹ 2,545 and can rise up to ₹ 4,677.
Is RERA mandatory in Andhra Pradesh?
Yes, registration under RERA is mandatory to construct, promote or sell properties in Andhra Pradesh, just like any other part of India.
Why is real estate price rising in Andhra Pradesh?
Andhra Pradesh is turning into a commercial hub, developing a plethora of IT offices and firms in the surrounding area. Moreover, it has exceptional transport services. This has contributed to the increased rates of real estate in AP.