Guide for Kharagpur Residential Real Estate Investment ￼
Kharagpur is one of the major industrial cities located in the district of Paschim Medinipur of West Bengal. This city is famous for numerous attributes, one for having the fourth longest railway platform in the world. In addition, this city has plants and manufacturing units of various Indian conglomerates, which serve as an astonishing establishment base for youth.
The place’s growing value in industrial and public utility sectors makes this place a stellar hotspot for investment in residential real estate.
Top Reasons for Investment in Residential Real Estate in Kharagpur
Here are the top reasons for investment in residential real estate in Kharagpur:
- Employment Opportunities
In West Bengal, Kharagpur stands as an important industrial base with stellar raw materials and labour availability. There is various industrial establishment of giant companies like Tata Hitachi, Siemens, Ramco Cements, Mahindra & Mahindra, etc.
Moreover, Kharagpur is also famous for Vidyasagar Industrial Park, which is another major IT park in progress. Hence, this inception of many new industries will create great employment opportunities, making Kharagpur a hotspot for relocations.
- Stable Transport Connectivity
The diverse and stable transport connectivity through railways and roads is a top reason for investing in residential properties in Kharagpur. The railway connectivity of Kharagpur connects many major places like Cuttack, Kolaghat, Haldia, Howrah, etc.
- Developing Urban Structure
As one of the fourth largest and fifth most populated cities of West Bengal, Kharagpur offers extensive residential complexes and township developments. Some of these popular places where the major settlements are developing are Bhawanipur, Kharida, Malancha, Subhaspally, Prem Bazaar, etc.
Due to this growing population and relocation, different public and private initiatives are taken to build residential properties.
Investment Opportunities in Residential Real Estate in Kharagpur
Some of the top locations for investment opportunities in this residential real estate market in Kharagpur include:
- Prem Bazaar
Different residential properties are being developed in and around the location of Prem Bazaar. Thus, many people are looking to reside here for the lucrative amenities and opportunities available in this place. The impeccable opportunities lie in the presence of colleges, rural hospitals and other public utilities that one can access in the Prem Bazaar.
Bhawanipur in Kharagpur is a populated place with many amenities like movie theatres, shopping malls, and reputed government hospitals and health centres. Moreover, there you can find two distinctive railway stations, Girimaidan Railway Station and Kharagpur Railway Station, which provide excellent connectivity with its neighbouring places.
Debra is located in this Kharagpur subdivision and is a growing spot for investment in the residential real estate sector. The place is a hub for different schools, educational institutes, and healthcare facilities. Moreover, increasing job opportunities due to this establishment of industrial and public utility service growth has led to a development of housing communities in Debra.
Things to Consider before Investing in a Residential Property in Kharagpur
If you are considering buying or investing in residential real estate properties in Kharagpur, here are the following factors to consider:
- RERA Authentication
The RERA (Real Estate Regulatory Authority) is an independent body verifying the authenticity of a specific builder or project. This body follows the compliance as laid down by the Real Estate Regulatory Authority Act 2016.
As per the act, every builder in Kharagpur must have the property registered on the official website of RERA of the West Bengal Government. Individuals who are interested in investing in residential real estate properties can verify the authenticity of the properties well in advance.
- Financial Condition
Before shortlisting the preferred plot and finalising the same, it is pivotal to consider your financial condition. Understanding where you stand financially and planning your finances accordingly, even after funding residential properties, is essential.
Consider preparing a list of advantages that are your preferences, like schools, educational institutions, hospitals, etc. Now, check whether this location offers all these facilities in close vicinity. This will act in favour if you let out the property to a tenant. The level of convenience and standard of living will automatically increase the demand for the place, increasing the rent amount.
Stamp Duty in Kharagpur
The below-mentioned table states the current stamp duty rates and registration charges applicable in Kharagpur:
|Location of the Property||Rates When the Property Value is Less Than ₹25 lakh||Rates When the Property Value is Above ₹40 lakh|
|Corporation Area (Howrah or Kolkata)||6%||7%|
|Notified Area/ Municipality/ Municipal Corporation||6%||7%|
|Any areas which do not fall under the above categories||5%||6%|
Registration Charges in Kharagpur
The following are the applicable registration charges in Kharagpur:
|Location of the Property||Registration Fee|
|Corporation Area (Howrah or Kolkata)||1%|
|Notified Area/ Municipality/ Municipal Corporation||1%|
|Any areas which do not fall under the above categories||1%|
It is compulsory to register the property ownership in your name once you purchase by making payment of the registration fee to the state government.
Kharagpur Residential Real Estate Sector- What’s the Forecast?
In the coming years, Kharagpur will see numerous housing and residential complex projects that are being built to cater to the growing population of the place. Moreover, the development of different IT and business parks will boost the level of employment in this industrial town.
The WB Government endeavours to set up an electronic business park in collaboration with the Indian Electrical & Electronics Manufacturers Association. The inception of this project will increase employment opportunities in Kharagpur, thereby increasing the rate of relocation.
Residential Real Estate vs Other Asset Classes
In this context, the difference between residential real estate properties and other asset classes are mentioned below:
- Residential Real Estate vs Commercial Real Estate
The appreciation value of investing in commercial real estate is more than the residential real estate; however, this residential real estate market is safer and more secure. In addition, when one invests in personal properties, he or she receives subsequent tax benefits. This advantage does not apply to an investment in commercial real estate.
- Residential Real Estate vs Stocks and Mutual Funds
Investment in stocks and mutual funds is prevalent due to the high liquidity and convenience of market entry. At the same time, this includes greater risks of crashing down of the stock markets.
However, investing in residential real estate allows for a comparatively safe market with a steady appreciation of the value of the same. With the steady growth in return, residential real estate helps in generating a great proportion of rental income.
- Residential Real Estate vs Gold
The gold market encounters fewer fluctuations and is a safer investment option. In addition, one can easily turn gold into cash, unlike like residential real estate investment. However, the rate of return that one can get upon investing in residential real estate is undeniably more than gold.
- Residential Real Estate vs Bonds
Investing in the residential real estate market and bonds both offer secure returns. However, funding your money in residential properties will generate high ROI. On the other hand, bonds offer liquidity as one can en-cash it any time he/she wants.
Here’s a tabular representation that shows the comparison of the assets based on the returns, risk involved, liquidity, and volatility, is as follows:
|Parameters||Residential Real Estate||Commercial Real Estate||Gold||Stocks and Mutual Funds||Bonds|
If you are planning to fund your money on lucrative bonds that will offer moderate returns and lesser risk, then register on our official website to check out the top-rated bonds in the market.
Step to Invest in Residential Real Estate Plots in Kharagpur
The step-by-step investment procedure of residential real estate has been explained down below:
Step 1: Know your spending and investment capacity by analysing your budgets and financial position.
Step 2: Proceed with market research to find out a list of properties that suit your budget and preferences. While doing this research, consider looking for properties that give a higher rate of returns.
Step 3: Upon completing this research, you will have a list of shortlisted properties ideal for investment.
Step 4: Pay an on-site visit to all the shortlisted properties to learn about these plots in detail and for further selection.
Step 5: Once done, choose the ideal residential property and proceed further for finalisation through the paperwork.
Step 6: Verify and carefully check all property-related documents and sign the necessary sales agreement.
Step 7: Further, complete your payment procedure for registration and stamp duty charges.
Step 8: If you have consulted an expert real estate agent, complete their payment as well.
Step 9: In the end, once you have purchased the property and all the other formalities have been taken care of, consider buying insurance for the newly purchased property.
Kharagpur, being an industrial hub of West Bengal, has great prospects in the residential real estate market. Moreover, this growing development in different sectors has increased the price of properties significantly. This is sure to welcome steady ROI in future.
Frequently Asked Questions
What are the popular universities or colleges present in Kharagpur?
Some of the popular universities or colleges in Kharagpur are IIT Kharagpur, Vinod Gupta School of Management, Rajiv Gandhi School of Intellectual Property Law, Hijli College, College of Engineering and Management, Tamralipta Institute of Management and Technology, etc.
What are the top hospitals one can access in Kharagpur?
The top hospitals or nursing homes one can visit during emergencies in Kharagpur are Anaphul Clinic & Life Care Nursing Home, B C Roy Technology Hospital, Hijli Rural Hospital and Kharagpur Homoeopathic Medical College and Hospital.
Why checking the RERA authentication of a property is important?
RERA authentication of a property specifies that a property is built as per the authority’s guidelines and no fraud has been committed. Hence checking the RERA authentication of a property is essential as it states the details of your developers, projects and agents and the current availability of a plot.
What are the popular places to invest in the residential real estate sector in Kharagpur?
Some of the popular places for investment in the residential real estate sector in Kharagpur are Subhaspally, Prem Bazaar, Bhawanipur, etc.