Guide for Karimnagar Residential Real Estate Investment
Karimnagar, located in North-central Telangana state, is a significant urban agglomeration. It is also Telangana’s fifth largest city. As per the census 2011, Karimnagar is the third largest and fastest developing urban settlement in Telangana.
In addition, the place is also referred to as the agricultural centre, which dominates Telangana’s economy. Karimnagar is home to a plethora of service sectors and small-scale industries. Karimnagar has also witnessed significant population growth.
Keep reading the article to know the investment prospects and best property sites in Karimnagar!
Top Reasons to Invest in Residential Real Estate in Karimnagar
Here are the topmost reasons why you must consider Karimnagar for making residential real estate investments.
- Health and Educational Pivot
Karimnagar, Telangana, serves as significant health and educational hub among other northern districts of the state. Karimnagar houses multiple schools and intermediate colleges. You will even find many medical colleges, technology institutes and law colleges here.
In addition, this city has also flourished to be a prominent health centre in Telangana. As it is centrally located, it becomes convenient for surrounding districts to commute here and seek treatment easily. Karimnagar hosts two major health institutes: Prathima Institute of Medical Sciences and Chalmeda Anand Rao Institute of Medical Sciences.
- Industrial Growth
The place also stands out for being a prominent business centre. The majority of industrial set-up is attributed to agricultural and granite industries. Hence, the city is rightly named ‘The City of Granites’. Manifold industries and service sectors contribute significant employment opportunities. The city has also paved the way for numerous small-scale industries.
Karimnagar is also popular for high-technology manufacturing and houses plants predominately manufacture pharmaceuticals, machine tools and other electrical equipment.
- Improved Road and Railway Connectivity
You can find organised and enhanced intercity connectivity in Karimnagar. The city is well connected with all the major parts of cities. State Highway 1 or State Highway 1, Telangana Rajeev Rahadari passes through the city, linking Karimnagar with Hyderabad and Mancherial highway coal-belt corridor. In addition, State Highways 7 and 10 and NH 563 pass through the city.
Karimnagar also houses Telangana’s third biggest bus station, named Dr. B. R. Ambedkar Bus Station.
- Smart City
Karimnagar has bagged off the title of the smart city. Under the Smart Cities Mission, Karimnagar falls among one of the hundred cities in India that is to be developed as a Smart City. Telangana State government have invested a substantial amount in transforming the city. For instance, under this mission, several roads have been developed.
Residential Real Estate Investment Opportunities in Karimnagar
Searching for the perfect property location is the first step toward making a residential real estate investment. While finding a residential property in Karimnagar, you can take the following regions into consideration.
Peddapalli is not only of archaeological and historical significance but also houses resources and civic amenities that make it ideal for residential real estate investment. You can access the PDPL railway junction from here, which links New Delhi (NDLS) – Chennai Central (MAS) and PDPL – KRMR – NZB.
The place is also home to numerous intermediate colleges, engineering and technology institutes, schools, post-graduation colleges etc. The region is well-connected with KHR (Hyderabad – Karimnagar – Ramagundam) highway, also known as Telangana State Highway 1. In addition, the district is also famous for producing cotton, which stands out for its quality internationally.
Another ideal property location in Karimnagar is Thimmapur. The place is well-connected to major cities. In addition, there are many educational institutes here. Individuals can have easy access to Government health centres. Other civic amenities that make the place ideal for residential real estate investment include the presence of bus stops in nearby proximities, supermarkets, police stations and other recreational sites.
Mankamma Thota is a reputed locality in Karimnagar, Telangana, for residential real estate investments. You can also find numerous independent houses in this region which are ready to move. The place houses numerous educational institutions and health centres. You can also have access to different parts of the city. There are two railway stations that are near Mankamma Thota: Kothapalli Railway Station and Karimnagar Railway Station.
Things to Consider Before Purchasing a Residential Property in Karimnagar
Before investing in a residential property in Karimnagar, you must look into the following factors and make an apprised decision.
- RERA Authentication
The first and foremost thing that you must check before investing in a residential property is whether the property is registered under Telangana RERA. The Real Estate (Regulation and Development) Act 2016 was implemented to secure home-buyer interest and boost real estate investment. You must ensure that the real estate developer possesses the land’s legal title, helping you avoid future discrepancies.
- Availability of Amenities
Another significant factor that you must take into consideration is the availability of basic and civic amenities near the property. It is very important to have easy access to civic amenities. Hence, check the distance of the nearest schools, markets, hospitals, and railway stations from the property. In addition, check the distance of your workplace from the property site.
- Construction Quality and Builder’s Reputation
You must look beyond the property’s exterior and assess the construction’s quality. In this context, go for checking the quality of the finish, wiring, walls etc. Secondly, scrutinise the builder’s credibility. To do so, check the real estate agent’s profile and business history. You can also go through the client feedback and review regarding the agent or developer and ascertain their authenticity and quality of work.
Stamp Duty in Karimnagar
Let’s look at the stamp duty rates applicable for an immovable property that is up for sale in Karimnagar, Telangana.
|Name of Document||Stamp Duty|
|Sale of immovable properties in selection grade, exclusive grade municipalities and corporations||4%|
|Property sale in other areas||4%|
|Flats or apartments (including the semi-furnished ones), located in all the areas||4%|
|Sale agreement with possession||4%|
|Sale agreement without possession||0.5% (Cannot be adjusted)|
|Sale agreement along with GPA||5% (4% can be adjusted, and 1% cannot be)|
Registration Charges in Karimnagar
The table below displays the registration charges in Karimnagar.
|Name of Document||Registration Charge|
|Sale of immovable properties in selection grade, exclusive grade municipalities and corporations||0.5%|
|Property sale in other areas||0.5%|
|Flats or apartments (including the semi-furnished ones), located in all the areas||0.5%|
|Sale agreement with possession||0.5% (based on a maximum amount of ₹ 20000 and minimum amount of ₹ 1000)|
|Sale agreement without possession||0.5% (subject to a maximum amount of ₹ 20000 and minimum amount of ₹ 1000)|
|Sale agreement along with GPA||₹ 2000|
Karimnagar Residential Real Estate Sector: What’s the Forecast?
The State and the Central Government are putting enormous efforts into ensuring robust industrial development in the area, thereby ensuring employment opportunities.
There are many upcoming projects in the transportation sector that will make commuting easier for residents.
For instance, the construction of the Kothapalli-Manoharabad railway line by 2025 will help residents to commute faster from Karimnagar to Hyderabad. In addition, the first phase of road work under Smart City Mission includes connectivity from Ambedkar Stadium to Bypass Road via Gautam Nagar, from Court to Shata Vehicle University Road and more.
In the coming days, more pathways for pedestrians will be developed. The suspension bridge, which was under construction, is ready to be inaugurated. An amount of ₹130 crore is invested in developing greenery in the city.
Regarding the education sector, from 2023 to 2024, Karimnagar will run Government Medical College on its own. This initiative was a part of the long-term healthcare industry plan of the state. Multiple other schools and colleges are yet to open here.
For offering all-around infrastructure, an amount of ₹7.20 crore has been allocated by the State Government of Telangana under Smart City Mission for the construction of parks on multi-purpose school premises.
Recently, Maneru River Front fund was released by CM KCR and work on the same is going to begin in the coming days.
Residential Real Estate Vs Other Asset Classes
The section below highlights the comparison between residential real estate and other asset classes.
Residential Real Estate vs Mutual Funds and Stocks
Though mutual funds and stocks will help you earn stable returns, you cannot cross out the risks of these investment options. Residential real estate, on the contrary, will help you earn stable returns as compared to mutual funds and stocks without you undergoing any risks.
Residential Real Estate vs Commercial Real Estate
Though commercial real estate generates higher ROI, people find it difficult to afford it. On the other hand, residential real estate enables you to earn returns and reap several tax benefits. It is also more convenient to search for tenants for residential real estate than for a commercial alternative.
Residential Real Estate vs Gold
Gold can be used for both short-term and long-term investments. However, it comes with higher volatility. You cannot negate the risk of the commodity getting stolen. On the other hand, residential real estate is a favourable long-term investment plan which extends higher returns and is not prone to volatility. In addition, as the market condition strengthens, property value increases.
Residential Real Estate vs Bonds
Bonds and residential real estate are both great sources of passive income. With bonds, you can have earnings from the interest. Additionally, bonds are easier to exchange for cash than residential real estate. On the other hand, you can reap numerous tax benefits with residential real estate investments. Also, residential real estate generates cash flow via rental income. Its value can also increase through appreciation.
Refer to the table to look through the comparison made between varied asset classes based on risks, liquidity, ticket size, volatility and returns.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
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Steps to Invest in Residential Real Estate in Karimnagar
You must follow the steps mentioned below to invest in a residential property in Karimnagar.
Step 1: While fixing the budget, consider the charges that will result from the amenities. It includes maintenance charges, commuting charges, property tax and more.
Step 2: Search for the desired residential property and shortlist the best property sites. In this regard, you can take the assistance of a real estate broker, developer or agent.
Step 3: Scrutinise every aspect of the property before finalising it.
Step 4: Check for RERA authentication and keep necessary documents in order. Prepare all legal documents with the assistance of a property advisor.
Step 5: Pay stamp duty and registration charges. Also, clear the service charges of the lawyer and broker.
Step 6: Avail of an insurance plan to secure your residential property from unforeseen circumstances.
Karimnagar, a rapidly developing city in Telangana, houses all essential resources and amenities for one to materialise their residential real estate investment plan. However, to make the residential real estate investment in Karimnagar successful and dodge unnecessary hassles, you must be aware of every particularity related to investment. For gaining clarity, refer to the above-mentioned sections.
Frequently Asked Questions:
What is the population density in Karimnagar?
Karimnagar is one of the most densely populated regions in Telangana. The population density in Karimnagar is 11,114 persons per sq. km. As per the 2011 census, within the corporation limit of Karimnagar, the population stands at 261,185.
Which is the nearest airport to Karimnagar?
Karimnagar is near to Rajiv Gandhi International Airport, which is around 164 Km away from the city.
Are there any tourist attractions in Karimnagar?
Yes, Karimnagar also houses many tourist sites. Some of them are as follows Lower Manair Dam, Deer Park and Ujwala Park and more. A cable bridge on Maner River is under construction and is scheduled to be functional in 2023.
Is it mandatory to pay stamp duty while buying residential real estate in Karimnagar?
Yes, for property transfer and sale, stamp duty payment is a must. It must be cleared in full and on due time. Any delay in stamp duty payment will attract a penalty.