Guide for Kollam Residential Real Estate Investment￼
Kollam is a district located in the Southern Kerala region and is known for its cashew industry.
The city is known for its educational facilities. Literacy rate of the district is 91.47%. Therefore, investing in residential real estate will be advantageous in terms of education infrastructure.
As far as transportation is concerned, the district is well-connected via roads, sea ports, waterways, and railways. Moreover, in comparison to other districts in Kerala, Kollam is in the 1st place concerning its performance in PHCs (Primary Health Care)/FHCs (Free Health Care) which implies better healthcare facilities for the residing population.
Read to understand the factors which make Kollam an attractive district for residential real estate investment!
Top Reasons to Invest in Residential Real Estate in Kollam
Investing in residential real estate in Kollam will be beneficial for you, owing to its transportation facilities, educational institutes and health infrastructure.
Kollam’s transportation is blessed with highly connected roads, sea ports, waterways, and railways. Kollam being an important rail junction will offer you good connectivity across the district.
Apart from roads and railways, water connectivity in the form of boat services in Kollam will offer you an opportunity of exploring its scenic beauty.
- Educational Infrastructure
A standard educational infrastructure in Kollam is the primary reason behind its growing literacy rate. There are around 473 primary and 213 secondary schools in Kollam.
Furthermore, you will also have access to highly renowned centres for education like Thangal Kunju Musalir College of Engineering, Sree Narayana Guru College of Legal Studies, and Fatima Mata National College, etc.
The district also has a fishery school located at Alappad. You will also find a Kendriya Vidyalaya located at Kottarakkara.
- Health Infrastructure
Kollam offers its residents a standard quality of PHC and FHC. The district ranks third in terms of UHID visits (52%) and Doctor Consultations (83%). Moreover, Kollam is in the 1st position in the area of pharmacy usage.
Transportation, education, and health infrastructure are the primary reasons why you should invest in residential real estate properties in Kollam.
Investment Opportunities in Residential Real Estate in Kollam
Some of the important destinations in Kollam for residential real estate investment are:
Mundakkal is one of the major cities in Kollam known for its residential properties. Important destinations and institutions are located in Mundakkal like Kerala Cashew Development Corporation Limited and Cashew Export Promotion Council of India etc. The average price of residential real estate properties in Mundakkal starts from ₹2,200/sq. ft.
Asramam is an important city in Kollam, Kerala which is in close proximity to hospitals, airport, private and public educational institutions, parks, etc. You will receive best healthcare facilities in Asramam as the headquarters of the Indian Medical Association for Kollam is located herein. The average price of residential real estate properties in Asramam is ₹3163/sq. ft.
Things to Consider Before Investing in a Residential Real Estate in Kollam
Consider the following points if you are planning to invest in residential real estate in Kollam:
- RERA Authentication
RERA is an Indian regulatory body, responsible for assessing and monitoring the activities aligned with real estate.
The assessment and evaluation by RERA are primarily state-specific. Moreover, RERA also plays the role of an adjudicating body for solving any kind of dispute within the real-estate sector, thereby safeguarding the buyer’s interests.
It is essential to register any building or property under the RERA act for executing the operations of a real-estate business.
Thus, you must verify details of your preferred residential real estate in Kollam by visiting the website of RERA Kerala.
- Safety and Security of the Location
Post verifying the details of your preferred residential real estate area, do not forget to check the safety and security of the locality. As per the parameters of safety and security, there must be a surveillance system, and officers for protecting locals from a kind of unwanted circumstances, etc.
Thus, please make sure that your preferred residential property has proper security cameras, guards for patrol, etc.
Stamp Duty in Kollam, Kerala
Stamp duty for registering residential real estate property in Kerala is as follows:
|Joint (Male + Female)||8%|
|Joint (Female + Female)||8%|
|Joint (Male + Male)||8%|
Registration Charges in Kollam, Kerala
Here are the registration charges applicable on property purchases in Kollam:
|Joint Buyers (Male + Female)||2%|
|Joint Buyers (Female + Female)||2%|
|Joint Buyers (Male + Male)||2%|
Kollam Residential Real Estate Sector: What’s the Forecast?
Kollam is listed as one of the fastest-growing district in Kerala. Infrastructure development in Kollam has been the priority of the Indian government since 2019. Rapid development of the Kollam bypass is one of the best examples of Kollam’s holistic development.
Further, the government of Kollam has been focusing on Transit-Oriented Development. Thus, Kollam is currently under urban development which includes future expansion of its residential real estate sector. It is quite evident that Kollam will be a hub for a wide array of developments in areas of health, education, transport, etc.
Residential Real Estate vs. Other Asset Classes
Let us compare residential real estate and other classes of assets based on various parameters:
Residential Real Estate vs. Commercial Real Estate
Residential real estate investment offers less returns than commercial property investments. However, the entire paperwork and documentation of leasing out residential properties are much simpler than commercial properties. Moreover, you can avail tax benefits if you avail the residential property on a home loan.
Residential Real Estate vs. Mutual Funds & Stocks
If you are planning for long-term investment coupled with higher returns, you should consider investing in mutual funds and stocks. Liquidating your mutual funds is easier whereas residential real estate liquidation takes a longer time.
However, the chances of incurring a loss are higher in the case of mutual funds and stocks, owing to the volatile nature of the market.
Residential Real Estate vs. Bonds
Bond investments have low credit risk than residential real estate. Moreover, bonds are highly liquid, which is not the case with real estate because of the high transaction costs involved and the long time it takes to get a suitable buyer.
If you wish to invest in low-risk bonds that offer 9-11% returns, register on our platform today. Invest in the top-rated bonds available in the market at no additional costs or charges.
Residential Real Estate vs. Gold
Investment in residential real estate is stable owing to its lower bandwidth of risk. However, if you are considering investing in gold, please remember that the volatility and risks are higher.
Residential real estate investment also helps in the generation of passive income which is not possible in case of gold.
Following table will provide consolidated information on the comparison between residential real estate and other classes of assets as explained above:
|Parameters||CommercialReal Estate||Gold||Stocks & Mutual Funds||Bonds||Residential Real Estate|
Steps to Invest in Residential Real Estate in Kollam
Here are the steps that you can follow for purchasing any residential real estate property in Kollam:
Step 1: Decide on your investment budget.
Step 2: Conduct in-depth research on the kind of property that you want to buy. You must conduct proper background research on the real estate property and its builder.
Step 3: After shortlisting a few properties, proceed with visiting each of the sites. Cross-verifying the legal documents of the property is important.
Step 4: After finalising a property, prepare the necessary documents for the purchase.
Step 5: Complete the payment process. Seal the deal by paying the requisite stamp duty and registration charges.
Kollam is growing exponentially as one of the most preferred districts in Kerala. Owing to its phenomenal transport, education, and health care development, Kollam is attracting families for long-term settlement.
The government is focusing on the holistic development of the district. From a long-term perspective, investing in residential real estate properties in Kollam will be profitable for you.
Frequently Asked Questions:
What is RERA?
RERA is the abbreviated form of Real Estate Regulatory Authority that was established after the enactment of the RERA Act of 2016. It is a governing body that is responsible for handling any kind of discrepancies in the real estate industry as per the state.
Should I invest in bonds for high returns?
If you are looking to generate exceptionally high returns, bonds might not be the suitable investment option for you. They are low-risk assets that offer stable returns; the credit risk is low so the chances of getting a fixed return is guaranteed.
What is the price per square meter for an apartment in Kollam’s city centre?
The price per square meter for purchasing an apartment in the city centre in Kollam is ₹64,583.46
What are the different types of commercial properties I can invest in?
If you are looking to invest in commercial properties, you can invest in warehouses, storage facilities, restaurants, hotels, shared workspaces, etc.