Guide for Punasa Residential Real Estate Investment￼
Punasa is a town in the Khandwa district of the Indian state of Madhya Pradesh. Although a small town, it shares good connectivity via national highways like NH347BG and the railway station, which is within 10 km distance from the city.
The Government, for the development of this town, set up a dam, which provides 24×7 electricity and clean water. Moreover, the dam construction made this place important to the Government for further infrastructural and connectivity development.
All these small developments are creating demand for residential real estate investment in Punasa, which is attracting more builders and investors.
Let us know everything about investing in Punasa’s residential real estate.
Top Reasons to Invest in Residential Real Estate in Punasa
The reasons to invest in the residential real estate of Punasa, Madhya Pradesh, are as follows:
Although a small town in Madhya Pradesh, Punasa serves great connectivity through roads, national highways and railways. It also has bus services for proper transportation connecting important places like Bhawarla, Damangaon, Indore, and many more.
The infrastructure of this town is also developing gradually, and the Government is trying to provide city-like facilities here. This development started with the construction of the Indira Sagar Dam, which provides this area with 24×7 electricity and water facilities.
Residential Real Estate Investment Opportunities in Punasa
The locations offering the best opportunities for residential real estate investment in Punasa, Madhya Pradesh, are as follows:
The infrastructural facility of Kotwada is great for residential real estate settlement with schools, hospitals, marketplaces, malls, etc., near this area. Moreover, this area serves great connectivity and transportation facilities to commercial places, making it easier for daily office goers.
- Gowshala Chourah
The main feature of investing in residential property in Gowshala Chourah is its connectivity and transportation facilities. It is just 5 minutes from the local bus stand of the area connecting various important places. Moreover, the presence of a marketplace and local shops in this area makes it suitable for housing purposes.
Things to Consider Before Buying a Residential Property in Punasa
The primary things to consider before purchasing a residential real estate property in Punasa, Madhya Pradesh, are as follows:
- RERA Verification
The Real Estate Regulatory Authority (RERA) is a statutory body whose aim is to promote transparent and authentic real estate business between buyers and agents since when it was notified by the RERA Act 2016. You can check the authenticity of a property and its builder in Punasa by visiting the RERA website of Madhya Pradesh.
- Builder’s bio-data
If you are planning to invest in a particular builder’s property, check their past projects and status. You must check whether there are any ongoing court cases against the chosen property or its builders.
Stamp Duty Rates in Punasa, Madhya Pradesh
The stamp duty rates for real estate property sales in Punasa, Madhya Pradesh, are as follows:
|Gender||Stamp Duty Rates|
|Joint (Male + Female)||7.5%|
|Joint (Male + Male)||7.5%|
|Joint (Female + Female)||7.5%|
Registration Charges in Punasa, Madhya Pradesh
The registration charges for real estate property in Punasa, Madhya Pradesh, is as follows:
|Joint (Male + Female)||3%|
|Joint (Male + Male)||3%|
|Joint (Female + Female)||3%|
It is very important to consider the rates of stamp duty and registration as they will be a part of your investment amount.
Punasa Residential Real Estate Sector: What’s the Forecast?
After the spread of Covid 19, the entire state of Madhya Pradesh has witnessed a 15-20% rise in real estate construction costs. Here, the prices of raw materials like cement itself have witnessed a 30% overall price hike. All these impacted the cost of property in all the places of Madhya Pradesh, including Punasa.
Moreover, the gradual infrastructural and connectivity development in this place is again creating demand for real estate. Hence, we can notice a rise in property prices in one of the cheapest real estate areas of Madhya Pradesh in the upcoming years.
Residential Real Estate vs Other Asset Classes
The comparison between residential real estate and other asset classes has been discussed below:
- Residential Real Estate vs Stocks & Mutual Funds
Unlike the fluctuating returns from stocks and mutual funds, residential real estate offers assured returns with direct asset ownership. Moreover, you can avail tax benefits on the purchase of a residential property if it is availed on a home loan.
- Residential Real Estate vs Gold
When compared to gold, residential real estate offers more stable returns as there is an opportunity to generate passive rental income. However, gold offers better liquidity options as it can easily be converted to liquid money, which is impossible with real estate.
- Residential Real Estate vs Commercial Real Estate
Residential real estate has higher rental prospects in comparison to commercial real estate. However, housing spaces lack demand compared to commercial real estate, especially in the premium category.
- Residential Real Estate vs Bonds
Bonds have a low credit risk in comparison to residential real estate. Additionally, residential property investments are less liquid than bonds due to the long time it takes to find suitable property buyers.
A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:
|Parameters||Residential Real Estate||Gold||Residential Real Estate||Stocks & Mutual Funds||Bonds|
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Steps to Invest in Residential Real Estate in Punasa
The steps to invest in residential real estate in Punasa, Madhya Pradesh, are as follows:
Step 1: Do proper market research.
Step 2: Estimate your investment budget.
Step 3: Shortlist a few affordable sites. You can also take the help of an agent to get the best deals.
Step 4: Plan a field visit to each location to examine each site precisely.
Step 5: Finalise a residential property that is suitable and prepare all the official documents.
Step 6: Make the final payment and purchase the property.
Step 7: Complete stamp duty and registration formalities.
Step 8: Cover your new property with an insurance policy.
Step 9: Pay service fees to real estate consultants and brokers if you availed their services.
The outlook for the residential real estate sector in Punasa is witnessing positive changes considering its rapid connectivity and infrastructural growth. Due to low property value, the demand for residential property among investors is also increasing day by day. However, it is also necessary to conduct proper market research before purchasing a property to avoid fraudulent activities and losses.
Frequently Asked Questions
Is Punasa an urban or rural area?
Being a developing town, Punasa can be termed an urban area with major infrastructural and connectivity developments being launched by the state government. Considering the total population of Punasa, almost 90.3% lives in the urban part of this place, while the remaining resides in the rural part.
What is the average real estate property price in Punasa?
The property prices in Punasa are very low, with an average total price of a residential plot being approximately ₹3.5 to ₹4 lakh. However, the usual property prices in this place range between ₹2 to ₹5 lakh in total and do not really exceed ₹10 lakh in total.
What documents are required for registering a new property in Madhya Pradesh?
The documents required for registering a new property in Madhya Pradesh are sale deed, NOC from the builder and banks, completion certificate, building plan approvals, PAN card and photographs.
What is the stamp duty rate on gift deed in Madhya Pradesh?
The stamp duty in Madhya Pradesh on gift deed to family members is 1% of the property’s market value, which must not exceed ₹1000. However, if this gift deed is for others, stamp duty will be 5% of the property’s market value.