Guide for Ludhiana Residential Real Estate Investment

9 min read • Published 21 October 2022
Written by Anshul Gupta
Ludhiana Residential Real Estate Investment

Ludhiana is one of the fastest developing areas in India. It is a hub for businesses and industries in Punjab with access to modern infrastructure and amenities like hospitals, colleges and schools. 

The city is well-connected with the rest of Punjab and other prominent cities in India. It is reachable from New Delhi and Amritsar by road via NH-1. The Ludhiana Junction is one of the busiest stations in Punjab, with 100+ trains passing through it daily.  

Ludhiana is a highly-developed city with many large businesses that offer employment opportunities to many people from other parts of the country. The manufacturing and textile industries are the largest of the different industrial sectors. . Ludhiana is also known for its bicycles, with a production capacity of 10 lakh cycles in a year.

Residential real estate demand in Ludhiana is rising rapidly due to the business growth in this city. If you are considering investing in residential real estate in Ludhiana, read through the following sections. 

Top Reasons to Invest in Ludhiana Real Estate

Ludhiana is one of the most developed cities in Punjab and is a high-demand area for real estate. Read the points below to understand why you should invest in residential properties in Ludhiana:

Large Industrial Sector

Ludhiana is known as the industrial hub of Punjab and the ‘Manchester of the East’. It is home to several industries, including automobile, machinery equipment, etc. In addition, it boasts world-renowned manufacturers of textiles, bicycles, industrial fasteners and electronics. 

It is one of India’s fastest-growing cities due to its exposure to many industries and infrastructural development in this area due to access to these businesses.  As a result, Ludhiana city sees a high level of employment generation which automatically grows its demand for residential real estate.

Affordability

This city’s cost of living is much lower than most top cities with similar opportunities. Ludhiana has access to all modern metro town amenities but also offers a low cost of living simultaneously,  making it an ideal choice for a residential location.

Close to Greenery

Although an industrial town, Ludhiana is surrounded by many trees and open lands. It allows the residents to enjoy the comfort of fresh breath amidst the chaos of city air. There are also several gardens and parks in Ludhiana, like the Nehru Rose Garden, where residents can spend time in greenery.  

Business Hub

Besides being an industrial hotspot, Ludhiana is also a prominent business hub in Punjab. Ludhiana has many important IT companies and business markets, which boosts the state’s economy. Large brands in Ludhiana include Hero Cycles, Monte Carlo, Avon Cycles, Bonn, etc.

As a result of high disposable income and the presence of NRIs in Ludhiana, the city is experiencing rapid growth in real estate. As a result, newer hotels, malls and residential areas are being built, which will positively impact property prices here. 

Residential Real Estate Investment Opportunities in Ludhiana

The following areas in Ludhiana are best for residential real estate investments.

Dugri

This area in Ludhiana is one of the prime locations for residential properties. It is surrounded by important highways, like NH-95, Dugri road and Model Town Road, which connects this location to the rest of the state and nearby cities. It is also close to Industrial Area A and B, which makes it a demanding location. 

All residential hubs in this area are equipped with modern amenities and connect well by road and railway station.

Model Town

This locality is best to live in Ludhiana in terms of infrastructure and facilities. This locality has top hospitals like Guru nanak Charitable Hospital and the best schools like Greenland and other government elementary schools. In addition, Model Town also has several shopping zones, malls, and other amenities. It also connects railways and roads.

Read Also: Guide for Bhopal Residential Real Estate Investment

Things to Consider before Buying a Residential Property in Ludhiana

Residential real estate investments are a long-term financial commitment. Hence, it would be best if you considered all the important factors before investing in residential real estate in Ludhiana.

Safety

Areas with a developed, safe environment under authorities’ surveillance are preferable for residential real estate. Therefore, you should select a site with high safety, friendly neighbourhoods and active policing. 

High-demand Location

Please select a location with high demand, as it will fetch good returns in the future. You can also invest in a residential property in a developing location which will multiply in value rapidly in the future.

Established Builder 

Purchase your real estate property from an established builder to avoid fraudulent practices. It also adds to the future valuation of your property if a reputed builder constructs it.

RERA Registration

The Real Estate Regulatory Authority (RERA) is a government body that examines all real estate-related activities in each state. Under the instructions of The Real Estate (Regulation and Development) Act of 2016  each state in India has a dedicated RERA body to safeguard the real estate market and its participants.

Before buying a property in Ludhiana, check the property and builder details from the official website of RERA Punjab.

Connectivity

Ensure to purchase a residential property in a location with good connectivity. Access to buses, trains and airways will make it convenient to commute from your residential area to nearby cities. Good road connectivity within the city and access to public transportation is also essential for residential properties.

Stamp Duty in Ludhiana

The stamp duty charges in Ludhiana are given below in the table.

GenderStamp Duty Charges
Male7%
Female6%
Joint (Male + Male) 7%
Joint (Male + Female)6%
Joint (Female + Female)6%

Registration Charges in Ludhiana

Refer to the details below to know Ludhiana’s registration rates for residential properties.

GenderRegistration Charges
Male1% of property value
Female1% of property value
Joint Ownership1% of property value

Ludhiana Residential Real Estate Outlook

As the largest city and industrial hub in Punjab and the 2nd largest city in Northern India, Ludhiana Ludhiana anticipates seeing a massive gain in the future in terms of real estate. In addition, the industries in this city generate a good amount of employment, which attracts a good demand for residential real estate.

It is also an expanding hub for business and manufacturing products like automobiles and hosiery. Moreover, recent trends and demands for posh apartments have created a vast demand for residential real estate. With connectivity to railways, airports and several roads, Ludhiana’s networking and communication with other areas in India are fast and smooth. 

Hence looking at all the factors, it is easily understandable that Ludhiana is a prime market and will grow huge in the future. Therefore, it could be a good idea to invest in residential real estate in this city. 

Residential Real Estate vs Other Asset Classes

The following is a brief comparison of residential real estate vs other asset classes:

Residential Real Estate vs Gold

Residential real estate investments offer moderately high returns over a long period on large-scale investments. Risks associated with real estate are low as well.Gold investments have lower long-term returns than real estate and are more affordable to buy. 

Residential Real Estate vs Stocks & Equity Mutual Funds

Stocks and Equity mutual funds are high-return assets traded in the stock market. Due to their high market risks, these assets are highly volatile. Residential real estate offers comparatively lower returns but also has minimal risk. However, the initial investment cost is very high for most investors. 

Residential Real Estate vs Commercial Real estate

Commercial real estate offers higher returns than residential properties because the  value of commercial real estate grows over time and offers returns from rent and capital appreciation.

In contrast, residential real estate investments offer lower returns than commercial ones; they carry lower costs and risks. However, commercial real estate has more demand which is good for resale in future.

Discover More: Guide for Ludhiana Commercial Real Estate Investment

Residential Real Estate vs Bonds

Bonds are investment tools that offer comparatively lower returns in the long term and carry low risks. These are debt instruments offered by companies against funds from investors. High-rated bonds provide diversification to your portfolio and predictable returns at very low risks. However, real estate offers much higher returns compared to bonds.

If you want to invest in good value bonds, browse our offerings of top-rated bonds to expand your investment portfolio.

This table illustrates the differences between the above assets based on their returns, liquidity, risk, volatility and ticket size.

ParametersResidential Real EstateGoldStocks & Equity Mutual FundsCommercial Real EstateBonds 
ReturnsModerateModerateHighHighModerate
LiquidityLowHigh HighLow Moderate 
RiskLowModerate 
HighLow Moderate 
VolatilityLowModerate  HighLow Low 
Ticket SizeHighVariesVariesHigh Varies 

Steps to Invest in Residential Real Estate in Ludhiana

Follow the steps below to buy a residential property in Ludhiana.

Step 1: Select a budget.

Step 2: Search the market to search for the best locations.

Step 3: Shortlist a few properties based on your requirements.

Step 4: Visit these shortlisted properties and finalise your decision.

Step 5: Verify all details from the RERA website.

Step 6: Examine all the documents given.

Step 7: Complete the registration process.

Step 8: Make payment.

Read More: Guide for Madurai Residential Real Estate Investment

Final Thoughts 

Ludhiana’s real estate market has seen rapid growth despite the pandemic. This city is a promising market for residential real estate as it sees a good employment graph each year due to the industries and businesses present in this city.

If you are looking for an excellent residential property in Ludhiana, consider all the above factors and select a property from a reputed promoter in the prime areas of Ludhiana.

Frequently Asked Questions(FAQs)

What is the primary risk in real estate investment?

Real estate investments, both residential and commercial, have very relatively low risk. However, external factors like political influence and disasters can be unforeseen and fatal risks for your investment. A bad location is another risk you should avoid for your real estate investment.

What are the safest real estate investments?

The safest real estate investments that can multiply your capital are:

Buy-and-hold properties
Rental properties (short and long-term)
Multi-family homes

What is the nickname for Ludhiana?

Ludhiana is called the Manchester of India due to its large-scale industry exposure. The BBC popularly quoted this name.

What is the crime rate in Ludhiana?

Ludhiana witnessed a crime rate of 17.85% in 2021, as stated by the Crime Record Bureau. However, it is also important to note that the crime rate in Ludhiana is witnessing a downward graph with each passing year.

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Anshul Gupta

Co-Founder
IIT Roorkee Alumnus and CFA with experience of structuring debt products worth more than 15000Cr for institutional and retail investors.

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