Guide for Raichur Residential Real Estate Investment

12 min read • Updated 11 May 2023
Written by Team Wint Wealth

Raichur is the second largest district in the state of Karnataka, with steady growth in industrial sector. Known for its superior quality of rice, it earns a major section of its revenue from agricultural sector every year. Along with this it has sound irrigation system where it gets abundant water supply from Narayanpura Dam and Tungabhadra Dam.

Apart from this, the district is home to more than seven thousand small-scale industries and several large-scale industries ranging from agro and food-based industries to thermal power plants. Therefore, it is gradually developing into a hub and attracting job-seekers and civilians alike. Hence, real estate developers are trying to en-cash the increasing demand considering Raichur as a hotspot for real estate development. 

The present article throws light on the investment opportunities available in residential real estate in Raichur.   

Top Reasons to Invest in Residential Real Estate in Raichur

Here follows a brief discussion on some of the key factors that will guide you in investing in residential real estate sector in Raichur. 

  • Steadily Growing Industrial Sector

The establishment of industries with proper road connectivity, an uninterrupted supply of resources, and essential amenities are crucial for a district’s long-term development. Raichur is exceptionally gifted in this regard. The presence of five industrial areas is continually improving the economic capacity of the residents. 

Additionally, the Union Minister recently announced Raichur being chosen as one of the aspirational districts among 112 others by NITI Ayog for taking up development works. Considering the governmental and private growth potentials, it can be a favourable starting point to invest in real estate market in Raichur. 

  • Strong Healthcare Infrastructure

Within the city, there are at least 40 healthcare centres and hospitals that provide healthcare services. Among them, Balanku Hospital, Navodaya Hospital, and some more provide exceptional healthcare with state-of-the-art medical amenities. 

Navodaya Medical College Hospital & Research Centre, established in 2001 by S. R. Reddy, is an embodiment of healthcare in this district. It is also providing a map for the ongoing development of medical infrastructure in Raichur. 

For the residents of this district and the city, these health centres are the go-to places for medical emergencies and critical health problems. 

Residential Real Estate Investment Opportunities in Raichur

Here are some of the localities of Raichur where you can consider investing in real estate. 

  • Basaveshwaranagara

Basaveshwaranagara is quickly becoming a centre for real estate properties in Raichur. This residential area, situated between Rajajinagara and Mahalakshmi Layout, is a moderately populated hilly area with a reputation of being the least polluted area near Bengaluru. The scenic beauty of the area is increasing the demand for residential properties to develop in this zone.

Many reputed builders are showing interest to invest in this neighbourhood due to its effective transport system with Siddaiah Puranik road, Dr M. C. Modi Hospital road, 60 Feet Road, and close proximity to the metro stations. Furthermore, Basaveshwaranagara has some of the leading educational institutions and industries of Raichur, making it attractive for families with children and job seekers alike. 

  • Shaktinagar

Shaktinagar is famous for its Raichur Thermal Power Station, from where it got its name also. It got its new name and identity in 1980 before which it was known as Deosugar, famous for its car fair. In recent years, however, there has been an increasing interest in residential real estate around this region of Raichur. 

Having an industrial zone and being close to Raichur – Hyderabad route, it holds a lot of potential for a new influx of people. 

  • Devadurga

Devadurga has a population of over 2 million people and is one of the industrial belts in Raichur, known for its gold resources and paddy fields. It is a major rice exporter in the country. Apart from these, it also has a 600 years old baobab tree and an ancient fort that is making the locality a centre of attention for real estate developers. 

It has a transport system equipped with roads and railways making it well-connected with the whole state and the country. This can be a fruitful prospect if one is looking to make money from monthly rental incomes by utilising residential property at Devadurga. 

Things to Consider Before Purchasing a Residential Property in Raichur

Before investing in real estate in Raichur, you must consider some key factors that one has to examine beforehand. Here are those key factors: 

  • RERA Authentication of the Property 

This is the most necessary identification mark of a legally sound property. In 2016, the Indian Parliament introduced the Real Estate (Regulation and Development) Act to manifest regulatory measures for real estate industries. 

The act was established keeping in mind primarily the safety of investors in this sector. An investor has to monitor if a residential property of a state is registered under Real Estate Regulatory Authority or not. Therefore, before investing in real estate in Raichur, make sure to verify its details on the official RERA website of Karnataka.  

  • Quality of the Locality 

The location of the property determines a lot of things in a living experience as a whole. It becomes crucial to investigate the pros and cons of a locality before investing in real estate there. Therefore, one can try to get in contact with older residents in the area and try to find out about ups and downs of the place. 

The quality of a locality depends on several factors. For example, the traffic conditions, crime rate, proximity to a police station, distance from hospitals, schools and office areas, open ground or lakes and so on are the factors one should consider according to his or her discretion. 

  • Reputation of the Builder 

It is necessary to run a background check about the real estate developing agency that is responsible for constructing the building you are investing in. Ready access to the internet has made this verification process easier. You can conduct thorough research about the builder’s previous projects and in what condition they are in now. 

The standard of living in the property made by the real estate agency depends heavily on the reliability or reputation of the builder. For example, a building will need very less maintenance attention if the agency has used good-quality raw materials during construction. Furthermore, proper electrical and water connections are very crucial to living with proper safety and security. 

To ensure these are taken care of, you should visit the plot frequently where the construction is taking place to make an informed decision. 

  • Additional Costs Related to the Purchase 

To accurately calculate your initial investment, it is crucial to consider the additional costs involved in the real estate purchase. One must keep certain factors in mind while making a fiscal estimation concerning the budget. Some of these factors are maintenance fees, parking fees, stamp duty, registration charges etc. 

Keeping these additional values in mind, which one has to pay over the price of the real estate, will help to plan for the investment. 

Stamp Duty in Raichur 

The Karnataka government decides what the stamp duty would be for real estate. The table below displays the stamp duty charges for real estate properties in Raichur.

CategoriesStamp Duty 
MaleFemale Male + FemaleMale + MaleFemale + Female 5 % on property above ₹ 45 lakh
3 % on the property between ₹ 21-45 lakh
2 % on properties less than ₹ 20 lakh

Registration Charges in Raichur

Here is a list of registration charges applicable for residential properties in Raichur.

CategoriesRegistration Charges 
Male1% of the property value
Female 1% of the property value
Male + Female1% of the property value
Male + Male1% of the property value
Female + Female1% of the property value

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

This district is constantly developing, creating opportunities for industrial development alongside the surge of residential real estate properties. According to the current Prime Minister of the country, there are significant developmental projects taking place in Raichur that will enhance the daily living experience of common civilians alongside the development of employment opportunities.  

For example, there is a ₹ 4699 crore of investment to further improve the irrigation system of the regions of Raichur, Kalburgi and Yadgir. Additionally, there are also upcoming projects concerning developments of road transport and drinking water that have ₹ 10,863 crores of investment. Furthermore, the Rail Land Development Authority (RLDA) is leasing out 6596 m2 of land for commercial development that aims to ensure future prospects and reinforce local economy. 

Apart from all these, there are several residential projects getting started all over Raichur. From all this, one can recognise that Raichur is getting transformed into an economic hive where the demand for real estate is going to increase day by day. Therefore, if you are considering investing here, it can prove to be beneficial.  

Residential Real Estate vs Other Asset Classes 

There are several investment options for an investor that can bring higher returns in future. Here is a comparison between several asset classes and residential real estate to help one make an informed decision. 

Residential Real Estate vs Stocks and Mutual Funds 

Stocks, mutual funds and residential real estate are viable options for investment that promises a favourable ROI. Certainly, stocks and mutual funds promise a greater return, but the market is volatile, so one has to figure out if their portfolio has the necessary risk-tolerance potential or not before investing. 

However, residential real estate provides its ROI through monthly rentals, which is comparatively more predictable and stable. If you are looking for a steady flow of income with no-risks-attached, this can be a better option.   

Residential Real Estate vs Gold

Investment in gold can prove to be effective as it provides lucrative results for long-term as well as short-term investments. However this is not the case with residential real estate. It guarantees 8% to 15% returns and maintains a regularity that investment in gold cannot. Residential real estate is a lucrative long-term investment option where the value of the asset increases over time. 

Residential Real Estate vs Commercial Real Estate

If you want to invest in residential real estates, it will be comparably more economical than investing in commercial real estate. However, one has to lease out commercial real estate for a longer period of time, where it takes a higher amount of money to secure all necessary amenities for a mercantile tenant. Furthermore, it is more difficult to find a mercantile tenant than a resident one. 

Additionally, there are extra benefits of tax exemption for investing in residential real estate, which is not the same for commercial ones. 

Residential Real Estate vs Bonds

Residential real estate investment and bonds are both lucrative options of investment that can be stable sources of passive income. Bonds will keep your capital investment safe and provide a predictable return if continued till its maturity, and residential property will provide higher returns down the line. 

To provide you with a clearer picture, here is the comparison of different investment options of asset classes with residential real estate investments presented in a tabular form.  

ParametersResidential Real EstateStocks & Mutual FundsGoldCommercial Real EstateBonds
LiquidityLow High High Low Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High LowLow Low 
Ticket SizeHigh Varies LowHighVaries

Therefore, apart from residential real estate investment if you have an interest in investing in bonds that are low-risk, you can check out several highly-rated bonds at our website and get registered today.  

Steps to Invest in Residential Real Estate in Raichur

Here is a step-by-step guide for you to have a smooth experience while investing in residential real estate in Raichur. 

Step 1: You have to prepare a budget. 

Step 2: Make a list of properties of your linking by conducting thorough research.

Step 3: Give these properties an on-site visit. 

Step 4: Gain information about the building agency and its previous works. 

Step 5: Find out the resale value of the property and the prospect of the neighbourhood by consulting with a real estate expert.

Step 6: Decide the real estate you are going to invest in. 

Step 7: Make sure that the property has RERA authentication and conduct the paperwork.  

Step 8: Complete the transactions to become the legal owner of the property. 

Step 9: Get insurance for your new property. 

Final Word

Raichur, being a steadily growing industrial hub, is quickly becoming more and more profitable for real estate developing agencies in Karnataka. Lower cost-of-living expenses, multiple new prospects of employment and businesses, state-of-the-art healthcare facilities, and smooth and fast transportation promise a high quality of living. Investing in residential real estate in Raichur would be highly beneficial. 

Furthermore, you can use this investment as a way to diversify your portfolio so that even if certain asset classes face setbacks, it would balance that out and ensure profitability. 

Frequently Asked Questions 

What is the closest airport in Karnataka to Raichur?

Hyderabad Airport is the nearest airport to Raichur. It is approximately 190 km away from this industrial hub. 

What documents would one require to invest in real estate?

The documents required for investing in residential real estate in Raichur are: 
Encumbrance certificate
Sales deed
Completion certificate
Stamp duty and registration charges payment receipts 
KYC papers 
Possession letter 
Allotment letter 

Which section of Income Tax Act bestows exemptions for residential real estate investment? 

The sections that entail benefits of investment in residential real estate are sections 24 and 80 (c) of the Income Tax Act in India. 

How much can the return on investment in real estate investment be for 10 years? 

Over a period of 10 years, it has been noticed that approximately 10% may be obtained as return on investment on the residential real estate sector.

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