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:
- 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.
- 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.
- 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:
- 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.
- 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:
- 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.
- 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:
|Gender||Stamp Duty Rates|
|Male||6% (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 Value||Registration Charges|
|Property value below ₹30 lakhs||1% 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:
|Parameters||Commercial Real Estate||Gold||Residential Real Estate||Stocks & Mutual Funds||Bonds|
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.
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.