Kanchipuram, popularly known as the City of Thousand Temples is the capital of Tamil Nadu. Being renowned for showing an astonishing specimen of architectural brilliance, this city is home to hundreds of Indian weavers. Also, Kanchipuram silk is one of the star attractions that fall in the fashion category.
Apart from the art and culture attributes in Kanchipuram, this city shows a plethora of projects and public development in different spheres. Further, being an important city in the state of Tamil Nadu, there is various lucrative investment opportunity in residential real estate in Kanchipuram.
Here is a complete guide that offers clear details about the funding scope for residential properties in Kanchipuram.
Top Reasons to Invest in Residential Properties in Kanchipuram
The major reasons to invest in residential real estate in Kanchipuram are as follows:
- Broad Road Connectivity
The Tamil Nadu State Transport Corporation, running through Kanchipuram offers wide connectivity and covers major places like Chennai, Bangalore, Tirupathi, Thiruthani, Vellore, Salem, Coimbatore, etc. In addition to this, Kanchipuram railway station connects important places and serves as an important transportation route for carrying out business operations.
- Vibrant Occupational Scope
The primary occupation of Kanchipuram is weaving silk and agricultural activities. The worldwide growing market of Kanchipuram silk sarees has created a lucrative market for weavers across this state to flourish economically. Moreover, there are developments in other sectors that led to the constant growth of this state.
- Higher Quality of Education
Traditionally, this city is the epicenter of religious teachings in relation to Hinduism, Buddhism, and Jainism. Not only in religious research and education but the first rail construction training center is also inaugurated in Kanchipuram by Larsen & Toubro.
In addition, this city is home to the Indian Institute of Information Technology which offers amazing scope for information technology learning. The quality of learning and growing educational opportunities has also elevated the price of land.
Investment Opportunities in Residential Real Estate in Kanchipuram
Some of the popular locations which one can consider for investment opportunities in residential real estate in Kanchipuram are:
There are different residential projects which are being listed and offer a great choice for investment. The average price of its plot starts from approximately ₹600 per square foot.
Chegalpattu is one of the popular districts which is a hub for different industrial and public work. During past years, this place has seen a plethora of changes and development in terms of housing or residential real estate. The current average price of its land starts from approximately ₹1900 per square foot.
Things to Consider before Investing in a Residential Property in Kanchipuram
While you are looking for opportunities to invest in residential real estate property in Kanchipuram, here are the top factors to consider before proceeding with your investment:
Since investing in residential properties include a huge amount of money, this decision must be taken after careful consideration of future finances and daily expenses. Most importantly, the returns on residential property investment take time to accumulate, hence, one must make necessary planning and maintain funds for emergencies.
- Amenities Available in the Locality
The quality of a locality determines the price of residential real estate to a great extent. Suppose, if an area consists of community halls, shopping malls, educational institutes, and multiplexes, the standard of living of that place will be automatically high. Hence, investing in such a locality will allow a better opportunity of growing its market prices.
- RERA Authentication
The Real Estate Regularity Authority Act 2016 offers guidelines and provisions related to the activities and transactions in real estate sectors. A RERA is a statutory body that is present in every state and abides by the guidelines of the authority.
The official portal of RERA Tamil Nadu deals with the transfer and authentication of real estate projects in that particular state. This site offers help to an investor with information that supports the legitimacy of a project.
Stamp Duty in Kanchipuram
The rate of stamp duty on properties that is within the Municipal’s limits in Kanchipuram are:
|Category||Rate of Stamp Duty|
|Joint (Male + Female)||6%|
The rate of stamp duty on properties that are not within the Municipal’s limits in Kanchipuram are:
|Category||Rate of Stamp Duty|
|Joint (Male + Female)||4%|
In addition to this, stamp duty rates may also vary based on the types of property deeds. Some of the types are explained below in this table:
|Property Deed Types||Rate of Stamp Duty|
|Exchange||7% of market value of property which is greater|
|Sale/Conveyance||7% of property’s market value|
|Mortgage with possession||4% of loan value|
|Gift||7% of property’s market value|
|Normal mortgage||1% on loan value (maximum limit ₹ 40,000)|
|Sale Agreement||₹ 20|
Registration Charges in Kanchipuram
The registration charge rate in Kanchipuram are provided in a tabular format:
|Joint (Male + Female)||4%|
In addition, the registration charges based on the types of property deeds are also mentioned in the below table:
|Property Deed Types||Registration Charges|
|Exchange||4% of market value of property which is greater|
|Sale/Conveyance||4% of property’s market value|
|Mortgage with possession||1% of loan value (maximum limit is ₹ 2 lakh)|
|Gift||4% of property’s market value|
|Normal mortgage||1% on loan value (maximum value is ₹ 10,000)|
|Sale Agreement||1% on advance money|
Kanchipuram Residential Real Estate Sector – What’s the Forecast?
In the upcoming years, Kanchipuram will experience a myriad of industrial projects which will cater to the economic growth of the land. Some of the anticipated projects for which the work will start commencing are Portable Key Board Unit by Yamaha Music India Plan, Plastics Products N.E.C. by Novares India Automotive Plans, and many more.
It is also expected that a residential unit, the Natwest Vivas is to be set up in Kanchipuram. The development of these projects will sure to build up great opportunities for investors who are looking to fund in this sector.
Residential Real Estate vs Other Asset Classes
Here are the important differences to know between residential real estate and other asset classes:
- Residential Real Estate vs Stocks and Mutual Funds
The stock and mutual funds market experience constant fluctuations due to volatility in the share prices. This is mostly affected due to the economic or political condition of the nation. However, the value of a residential real estate is not immensely affected by this reason, hence investors can expect a steady and increasing rate of return upon funding the property.
- Residential Real Estate vs Bonds
Bonds like residential real estate offer a constant return on investment and have a moderate cost of entry. However, for investors looking for long-term investment portfolio building, investing in residential real estate plots will offer a higher rate of return. Thus, investing in both instruments has its perks, hence choose between the asset classes depending on the benefits you desire.
- Residential Real Estate vs Gold
Gold is considered the highest liquid asset in comparison to residential real estate. It is extremely easy to buy and sell gold; however, the different market fluctuations severely affect gold prices. For this reason, many investors choose to invest in the residential real estate market for the steady flow of returns despite economic disturbances.
- Residential Real Estate vs Commercial Real Estate
Undoubtedly, commercial real estate offers a higher rate of return as compared to other asset classes. However, the cost of entry in this commercial real estate market is higher than in residential real estate. Also, there are tax benefits attached to the residential option.
The table below shows the profound comparison of different assets based on different factors like market liquidity, volatility, and risk involved.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
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Steps to Invest in Residential Real Estate Property in Kanchipuram
Here is the step-by-step guide on the proper ways to invest in residential real estate properties in Kanchipuram:
Step 1: Understand your financial condition before and after investing in real estate properties. As this funding involves a huge amount of money, plan your finances well in advance so that you can manage your expenses well.
Step 2: Choose a list of properties that suits your requirements and budgets.
Step 3: Know and verify all the property-related details and locality thoroughly by verifying both on-site and off-site ways.
Step 4: Sometimes, taking help or guidance from real estate consultants offers better insights into the property that you have selected. These consultants also help in understanding the amenities of the locality to help you know the area well.
Step 5: Now you can opt to finalise a property after reconsidering all the options and information that you have gathered.
Step 6: Before making the final deal, check the property details in the RERA portal of Kanchipuram. The information in that portal will allow you to know that the property has been built or developed by following the guidelines of the law.
Step 7: After this, check the documents to check for verification.
Step 8: Once the verification is completed, set up all the accounts including bank details for a seamless transfer of ownership. This will also speed up the quick transfer of documents.
Step 9: Finally, after the completion of all the above steps, ensure to get a comprehensive insurance policy for the newly purchased property.
Kanchipuram, being a land holding histories of cultural vibrancy and heritage is developing in new dimensions in every possible sector. Hence, this article offers a better understanding to investors who are keen to fund their finances in the residential real estate sector.
Frequently Asked Question
What are the top hospitals there in the city of Kanchipuram?
Some of the top hospitals in the city of Kanchipuram are Meenakshi Medical Hospital & Research Institute, Rmd Specialities Hospital Amarambedu, Sankara Multispeciality Hospital, and Sri Mamallan Hospital.
What is Kanchipuram famous for?
Kanchipuram is renowned for the outstanding architecture of temples and monuments and for which known as the City of Thousand Temples. In addition, Kanchipuram sarees are one of the attractions in the fashion sector and are adored by tourists from all over the world.
What are the main advantages of investing in residential real estate plots in Kanchipuram?
Some of the primary advantages of investing in a residential real estate plot in Kanchipuram are the constant appreciating value of the land, lucrative ROI, and increasing development in the city in different sectors.
What is the document required for property registration in Kanchipuram?
The important documents required for property registration in Kanchipuram are a PAN card or Aadhaar Number, the sale document duly signed in the sale deed, duty stamped signed, and executed, Patta passbook, executant, claimant, and witnesses ID card.