Guide for Nanded Residential Real Estate Investment 

Nanded is the second largest city in the Marathwada region of the Indian state of Maharashtra. It is the place where the Sikh Guru, Guru Granth Sahib, spent his last days, making this place important on religious grounds. 

The demand for residential real estate is high here; this city shares great connectivity, a proper education system, and a vast agricultural market. It has an approximately 87% literacy rate, providing good education through numerous educational institutes in this city. Moreover, with developed connectivity through road, rail and air, it is attracting more individuals to invest in residential properties in Nanded.

Let us know more about it in detail!

Top Reasons to Invest in Residential Real Estate in Nanded

The main reasons for investing in residential real estate in Nanded, Maharashtra are as follows:

  1. Connectivity and Transportation

Nanded connects important cities in Maharashtra and Telangana through national highways like NH 61, 361 and 161. The MSRTC and TSRTC bus service connects these routes to all these important places. Moreover, it has two railway stations and a domestic airport connecting more places all over the country. 

  1. Proper Education System

There are numerous schools present in the city of Nanded providing proper education as well as supporting extra-curriculum activities. Other than schools, there are notable institutions like the Shri Guru Gobind Singhji Institute of Engineering and Technology and Dr. Shankarrao Chavan Government Medical College, providing skilful higher education. Moreover, there is an agricultural school in Nanded, that focuses on the proper education of individuals involved in this sector.

  1. Vast Agricultural Economy

Nanded has a vast agricultural economy, especially in cotton. For supporting this cotton industry, this city also has a regional Cotton Research Centre. This market creates huge employment and support which needs nearby residency. Some other crops which contribute to this market equally are bananas, mangoes, sugarcane, soya beans, jawar, etc.

Residential Real Estate Investment Opportunities in Nanded

The localities offering the best residential real estate investment opportunities in Nanded, Maharashtra are as follows:

  1. Subedar Nagar

Subedar Nagar is a peaceful place to invest in a residential area, with its main advantage being near the market area. The property price in this area is also cheaper than in other cities of Maharashtra, making it more attractive.

  1. Shivray Nagar

The area of Shivray Nagar has great infrastructural facilities like schools, Government hospitals, parks, marketplaces, etc. It also has basic amenities like 24×7 electricity, clean water, etc., making it more attractive among investors.

Things to Consider Before Buying a Residential Property in Nanded

The important factors to keep in mind before investing in a residential property in Nanded, Maharashtra are as follows:

  1. RERA Verification

Real Estate Regulatory Authority (RERA) is a statutory body which was established after the enactment of the RERA Act of 2016. Its aim is to promote transparent and authentic real estate transactions. 

Each state has its own RERA body. To check the authenticity of a property and its builder in Nanded, you can visit the RERA website of Maharashtra. 

  1. Proper Market Research

While investing in a residential property it is very important to conduct thorough research to check if the location, infrastructure or broker, is perfect. Such research will help you get the best deals on properties and also will help avoid fraud or losses.

Stamp Duty Rates in Nanded

The stamp duty rates which you need to pay while investing in real estate properties in Nanded, Maharashtra, are as follows:

GenderStamp Duty Rates
Male6% (Stamp duty 5% + Local Body Tax (LBT) 1%)
Joint (Male + Female)5% 
Joint (Male + Male)6% 
Joint (Female + Female)5% 

Note: A local body tax (LBT) of 1% is included in the stamp duty rates of Maharashtra as shown in the first case of the above table. There is a rebate considered by the state government to encourage women’s participation in the real estate sector.

Registration Charges in Nanded, Maharashtra

The registration charges which you need to pay while investing in real estate properties in Nanded, Maharashtra, are as follows:

Property ValueRegistration Charges
Property value below ₹30 lakhs1% of the property value
Property value above ₹30 lakhs₹30000

It is necessary to consider these stamp duty rates and registration charges as they will also form a major part of your total investment amount.

Nanded Residential Real Estate Sector: What’s the Forecast?

In FY 2022, the entire state of Maharashtra received a total turnover on real estate sales of approximately almost ₹8900 crores. This resulted in a potential rise in property sales of almost 42%, which includes both residential and commercial spaces. However, there is high chance of expecting a downfall in these sales in the next FY 2023. This is just a mere prediction by the Government officials and no solid forecast has yet been carried out.

Residential Real Estate vs Other Asset Classes

The difference between residential real estate properties and some other asset classes like gold, stock, bonds, etc., are as follows:

  • Residential Real Estate vs Stocks & Mutual Funds

Stock markets and mutual funds witness higher fluctuations than residential real estate, making it difficult for investors to estimate the returns. On the other hand, the residential real estate market is less volatile in comparison to stocks and mutual funds.

  • Residential Real Estate vs Gold

Gold offers better liquidity as it can easily be converted to liquid money, which is not easily possible in the case of residential real estate. However, gold being a valuable commodity has higher risks of being stolen, which is not possible with a residential property. 

  • Residential Real Estate vs Commercial Real Estate

Residential real estate spaces have a comparatively higher rental prospects than any commercial spaces. However, residential properties can suffer a lack of demand in comparison to office spaces, especially at the aggregate level.

  • Residential Real Estate vs Bonds

Residential real estate investment is less liquid than bonds due to the high transaction costs and a longer taking time to find a suitable buyer. Moreover, the credit risk in bonds is comparatively much lower for residential real estate properties.

A table showing the comparison between these assets on the basis of liquidity, risk, volatility and ticket price is given below:

ParametersCommercial Real EstateGoldResidential Real EstateStocks & Mutual FundsBonds
LiquidityLow High Low High Moderate 
RiskLow Low Low High Moderate 
VolatilityLow Low Low High Low 
Ticket SizeHigh Low HighVaries Varies 

If you are interested in investing in bonds, register on our platform today. We have got some of the market’s top-rated bonds providing stable returns at a low risk. 

Steps to Invest in Residential Real Estate in Nanded

The steps you should follow while investing in a residential real estate in Nanded are as follows:

Step 1: Calculate your budget and conduct a proper market research to know about the available sites.

Step 2: Select a few residential sites as per your requirements. 

Step 3: Plan a field visit to all these sites and check their authenticity on the RERA website before finalising the best one.

Step 4: Prepare the official documents and make the payment to purchase the residential property.

Step 5: Complete stamp duty and registration formalities and also pay service charges to consultants, if availed their services.

Final Word 

Nanded is an ideal location to invest in residential real estate. The well-developed connectivity, infrastructure, and availability of basic facilities make this place so attractive among investors. Moreover, the city is so well placed, that all education centres, hospitals, supermarkets, etc., are near to the residential areas as well. 

Frequently Asked Questions

Is Nanded an expensive place to live?

No, Nanded is not an expensive place to live and the cost of living index of this place is much lower than many big cities in India. Hence, if you want to invest in residential real estate at affordable rates, then Nanded is ideal for you.

Are there any tax deductions available on stamp duty, cess and registration charges in Maharashtra?

Yes, there are tax deductions available on stamp duty, cess and registration charges in Maharashtra under Section 80C of the Income Tax Act. Here, you can avail of a total deduction of 1.5 lakh.

What are some of the best places to invest in residential real estate in Nanded?

Some of the places to invest in residential real estate in Nanded are Dakshata Nagar, Subedar Nagar, Malegaon Road, Vazirabad, Waghala, Hyder Bagh, etc. All these areas are highly developed and there is also the availability of basic amenities required to manage a standard of living. 

What are the different ways of paying stamp duty charges in Maharashtra?

There are three different ways of paying stamp duty charges in Maharashtra. These are through stamp paper, franking, or e-stamp. Among these three, the e-stamp is considered the most convenient one.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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