Kurnool also called the city of Skanda, is a major city in Andhra Pradesh. Situated on the banks of the Tungabhadra River, this city has a historical significance which makes it an attractive tourist destination
According to the 2011 census, Kurnool is the 5th most populous city in the state with a population of 484,327. As the city continues to grow, more people will be drawn to this city. Various developmental projects are in progress in Kurnool which has increased economic prosperity for its residents and has placed the city firmly on the global map.
The largest economic sector in Kurnool is trade and transportation amounting to nearly 56.56% of employment. Tourism and healthcare services are the other large contributors to this city’s employment opportunities. This city has everything from maternity wards and private clinics to multispecialty hospitals. The high-quality medical services in Kurnool make it a centre for medical tourism.
Over the past few years, there has been a rise in demand for real estate. With that in mind, let us take a detailed look at residential real estate investment in Kurnool.
Top Reasons to Invest in Kurnool Residential Real Estate
Detailed below are the top reasons to invest in residential properties in Kurnool:
Many students from nearby areas arrive at Kurnool to pursue higher education at reputable colleges and universities. Some of the educational institutions in this city include Osmania College, Kurnool Medical College, Rayalaseema University and the Indian Institute of Information Technology Design and Manufacturing Kurnool.
Some of them may choose to rent apartments and stay with their families. Employment opportunities for the young will also lead to a rise in demand for residential spaces, making residential real estate investment a lucrative one.
Kurnool is a prominent tourist destination in Andhra Pradesh. Some of the important tourist destinations include Oravakallu Rock Garden, Belum Caves and Konda Reddy Fort. Kurnool also contributes significantly to revenue arising from temple tourism in Andhra Pradesh. Using residential properties as homestays is a good idea.
- Employment Opportunities
Kurnool is an educational and medical hub of Andhra Pradesh. Moreover, the State Government is focusing on the overall development of Kurnool. It inaugurated the world’s largest single-location solar park with a 1,000 MW capacity in the city in 2019. Such measures are improving employment opportunities for local workers.
Residential Real Estate Investment Opportunities in Kurnool
Detailed below are the best localities in Kurnool where you can consider investing in residential real estate:
- Nandikotkur Road
There are good educational and medical institutions on Nandikotkur Road which are added advantages for families living with children and old parents. Bus stations and shared auto stands are located within a walking distance. With good roads, playgrounds and banks, the area seems to be ideal for residential real estate investments.
You can consider investing in apartments located on Nandikotkur Road. Properties start from ₹5,417 per square foot.
- Madhavi Nagar
Building an apartment block in Madhavi Nagar is a good idea as the area is located near the airport. Moreover, a Kendriya Vidyalaya is located in this locality, which makes it a lucrative investment option.
You can consider investing in residential properties, plots or lands in Madhavi Nagar. Prices of residential plots can go up to ₹7,000 per square foot, but you can always negotiate.
Things to Consider before Buying a Residential Property in Kurnool
Listed below are the factors to consider before buying a residential property in Kurnool:
- Check Authenticity through RERA
According to the Real Estate Regulation and Development Act, 2016, every builder has to compulsorily register themselves along with the details of their projects on the official RERA portals. So, when you decide to purchase a residential property in Kurnool, check its authenticity on the RERA portal of Andhra Pradesh.
- Basic Amenities
Before investing in residential real estate, do not forget to minutely assess the site. Check whether water and electricity connectivity is available or not. Make sure the flooring is to your satisfaction. Do not forget to check whether the rooms have proper ventilation or not. Good quality parking spaces, staircases and lifts will improve your experience.
- Safety and Security
These are primary concerns for anyone who is looking for a residential property. Try to finalise a property which has a police station nearby. Check whether the locality is well-lit and under CCTV surveillance as it will help address security concerns. All of these features would help get tenants quickly, thereby improving your rental gains.
Stamp Duty in Kurnool
Do not forget to check the stamp duty rates for Andhra Pradesh which are applicable for Kurnool as well:
|Type of Document||Stamp Duty|
|Agreement of Sale||5%|
|Agreement of sale-cum GPA||6%|
Registration Charges in Kurnool
Let us take a look at the registration charges now:
|Type of Document||Registration Charges|
|Agreement of Sale||₹2,000|
|Development Agreement||0.5% (Capped at 20,000)|
|Agreement of sale-cum GPA||₹2,000|
Kurnool Residential Real Estate Sector: What’s the Forecast?
The State Government of Andhra Pradesh has made it its mission to improve the pace of Kurnool’s economic development. The largest Integrated Renewable Energy Storage Project (IRESP) in the world is being built in Kurnool.
It is considered to be an important project for the state and the country in general because it is a 5,230 MW renewable energy storage project. Experts have specially designed it as a flexible clean energy producer.
The Ministry of Tourism has also completed developmental work at the famous Srisailam Temple at Kurnool. Various components were added to the temple complex under this project. This includes an amphitheatre, parking areas, changing rooms, digital assets, food courts and banking facilities.
With developmental projects picking pace in the city, many businesses and industries are being set up, improving the employment opportunities for the locals. This has led to an increase in the number of skilled, semi-skilled and unskilled workers in Kurnool. As a result, the demand for residential spaces is steadily increasing, signalling a good future for residential real estate in Kurnool.
Residential Real Estate vs Other Asset Classes
Let us look at the comparison between residential real estate and various other asset classes:
Residential Real Estate vs Commercial Real Estate
Residential real estate is not as expensive as commercial properties. But commercial real estate generates more returns than residential real estate investments, especially in the premium category of office spaces. But, when it comes to taxation, investors receive more tax benefits by investing in residential real estate compared to commercial ones.
Residential Real Estate vs Mutual Funds and Stocks
Stocks and mutual fund returns are subject to market movements and generate market-linked returns. As a result, such investments are highly risky and can result in massive losses. On the other hand, residential real estate generates stable and consistent returns and is less risky as well.
Residential Real Estate vs Gold
Liquidity is a major benefit of investing in gold because buying and selling it is quite easy. Residential properties are relatively illiquid as it might become challenging to find a suitable tenant. Though residential real estate has the potential of generating higher returns, people consider gold to be a safer investment option.
Residential Real Estate vs Bonds
While both bonds and residential real estate are good sources of passive income, bonds have higher liquidity. On the other hand, residential real estate investments generate higher Return on Investments (RoI) than bonds. It is also associated with better tax benefits, which is a major advantage over bonds.
Given below is a tabular representation of the comparisons between various asset classes:
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
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Steps to Invest in Residential Real Estate in Kurnool
Given below are the steps you need to follow while investing in residential real estate:
Step 1: Decide on your budget, i.e. the amount you are willing to invest in residential real estate.
Step 2: Make a short list of the properties and visit the sites to conduct an in-depth analysis.
Step 3: You can consult real estate experts or brokers to get a better understanding of prospects and risks associated.
Step 4: Choose a property most aligned with your investment goals and proceed to purchase it.
Step 5: Check whether important documents like the sales deed and Encumbrance certificate are authentic and make payments to the seller.
Step 6: Complete all the formalities including stamp duty and registration charges to complete transferring the property in your name.
Step 6: Do not forget to pay the brokers and real estate experts if you have taken their help.
Step 7: Consider purchasing an appropriate insurance policy to lend an added layer of protection to your investment.
To sum up, residential real estate investment in Kurnool has good prospects as multiple developmental projects have led to increased employment which has further improved the economic prosperity of the residents. But do not forget to conduct thorough research on lucrative sites before investing in a residential space.
Frequently Asked Questions
Is it mandatory to take the help of a broker while choosing a residential property?
Generally, people take the help of brokers as these people can easily provide useful information based on the details of your dream house. If you are reluctant to use the help of brokers, you can consult any real estate expert who will be able to guide you in choosing a convenient residential property.
What is a good budget for purchasing a house?
It is important to come up with a budget that will not be difficult to afford. Generally, people take into account various expenses including property tax, owner’s insurance, repair expenses and maintenance costs while formulating a budget for buying a house. The location of the property is also a major factor in determining the price.
Can corporate bodies use residential properties as office space?
It is not legal to use residential properties for commercial use. But, service-based industries can carry out their operations from residential areas on a conditions. They will have to vacate their property if any resident complains about them.