Rajahmundry, officially known as Rajamahendravaram, is a major city located within the East Godavari District of Andhra Pradesh. It is one of the largest cities and the 5th most populated city within the state.
This city is known as the “cultural capital of Andhra Pradesh”. It is a major tourist destination, an important commercial centre and a major transportation hub. The recently constructed Road cum Rail bridge over the river Godavari linking Kovvur to this city has been considered a major engineering feat. It is the 2nd largest Road cum Rail bridge in Asia.
Due to several major factors, Rajahmundry is becoming a major attraction for residential real estate investment. With its infrastructure and a scenic as well as spiritual environment, this city is becoming the city of choice for many intending to make Rajahmundry their hometown.
Read more to know about the best options to invest in residential real estate in the city.
Top Reasons to Invest in Rajahmundry Real Estate
Here are some of the significant reasons to invest in residential real estate in Rajahmundry:
Rajahmundry is the cultural capital of Andhra Pradesh. It is considered the birthplace of the Telugu language.
Furthermore, it is a major religious centre for the Hindus. There are numerous temples in this city. Some of the major temples which attract a lot of devotees, not only from within the city but also from different parts of Andhra Pradesh, are the ISKCON temple, Markandeya temple, Venkateswara temple and the Kotilingeshwara temple.
Numerous festivals are celebrated in this city, which include Ganesh Chaturthi, Dussehra, Diwali, Shiv Ratri, Ram Navami, Hanuman Jayanti and Makar Sankranti. This makes it one of the best spiritual places to live in bliss.
Rajahmundry is a centre for transportation across the state. It is well-connected by road, rail and air transport.
It lies on NH-5 and is directly connected to major cities like Vijayawada, Vishakhapatnam, Bhubaneshwar, Hyderabad and Chennai. NH-365BB, NH-516D, NH-216A and NH-516E further connect it to Khammam, Suryapet, Ravulapalem, Tanuku, Tadepalligudem, Rampachodavaram, Elluru, Araku and Narsipatam.
It is also connected to the rest of the country by railways. This city lies on the Howrah- Chennai main line, connecting it directly to Vishakhapatnam and Vijayawada.
Rajahmundry also has an airport which is located 18 km from the city in Madhurapudi. There are daily flights from Rajahmundry to cities like Bangalore, Vishakhapatnam, Hyderabad and Chennai.
- Infrastructure and Amenities
Rajahmundry has all the infrastructure and amenities which are required to maintain a high-quality modern lifestyle.
There are numerous educational institutions and hospitals in the city. Some of the hospitals which provide state-of-the-art healthcare facilities in the city are Aarsh Hospital, Abhaya Emergency Centre, Augustun Hospital, and Akira Eye Hospital.
Apart from these basic amenities, the lifestyle in Rajahmundry can be quite comfortable. There are several deluxe gyms to keep you in shape, like Bodycourt and Health Plus Gym.
Rajahmundry also is one of the cities having the best shopping malls and shopping complexes. This city has a huge cloth market and you can find the best silver and gold jewellery here.
These make Rajahmundry one of the best places currently to buy a home.
Residential Real Estate Investment Opportunities in Rajahmundry
Here are some of the best locations in Rajahmundry where you can invest in residential real estate:
- AV Appa Rao Road
This is one of the best residential localities in Rajahmundry. There are several bus stops nearby linking this locality to other areas of the city as well as to the nearby towns and cities.
Essential facilities like education and healthcare are available here. This locality is close to some of the best schools in the city, such as Sri Vignaniketan School, St. Thomas Public School, Pranuthi Vidyaniketan English Medium School and Williams English Medium School.
There are also many malls and supermarkets in this area as well as several restaurants. Some of the malls and plazas here are Pokala Plaza, Prasaditya Mall, Vishnu plaza and KSR Plaza.
Morampudi is another prominent residential area in Rajahmundry where you can invest profitably in residential real estate. Apart from being well-connected to other areas of the city, this locality is also close to the Rajahmundry airport.
There are several schools in this area. This area also has some of the best healthcare facilities, with many multispeciality hospitals located in this area. Some of the best hospitals in this area are Saradhi Hospital and Revathi Hospital.
This area also has several shopping malls and restaurants. Furthermore, there are several supermarkets like D-Mart close to this locality. These factors make this area an excellent place to buy a home.
Things to Consider Before Buying a Residential Property in Rajahmundry
Before investing in a residential property, you must consider these crucial factors:
- Location and Connectivity Features
The location of a property is of utmost importance. A property located near important amenities like hospitals and schools tends to have a better rental prospect.
Similarly, a property which is at a prominent location where there is easy access to transportation will have a higher value. Furthermore, it will also enhance your living experience if you are intending to buy a home.
- RERA Authentication
Under the Real Estate Regulatory Authority Act, 2016, every state has a statutory body for the regulation of the real estate market. This body is responsible for maintaining authenticity and transparency in the real estate business and preventing property-related fraudulent activities.
Thus, before investing in a residential property in Rajahmundry, visit the Andhra Pradesh RERA website to check the authenticity of the property and its builder.
Stamp Duty in Rajahmundry, Andhra Pradesh
Given in the table below are the stamp duty rates on residential property in Rajahmundry:
|Document Type||Stamp Duty Rates|
|Agreement of sale||5%|
|Agreement of sale-cum-GPA||6%|
|Lease deeds of more than 10 years but less than 20 years||0.60%|
Registration Charges in Rajahmundry, Andhra Pradesh
Here are the registration charges for residential property in Rajahmundry:
|Document Type||Registration Charges|
|Agreement of sale||₹2000|
|Development agreement||0.5% (capped at 20,000)|
|Agreement of sale-cum-GPA||₹2000|
|Lease deeds of more than 10 years but less than 20 years||0.1%|
Residential Real Estate Sector in Rajahmundry: What’s the Forecast?
Rajahmundry is witnessing rapid development, with the central government allocating funds for developing the infrastructure of the city.
The National Highways Authority of India is currently constructing flyovers on NH-16 and NH-216A within the city to ensure better traffic flow. The Rajahmundry railway station is also being upgraded under the Adarsh scheme. The recently inaugurated Vande Bharat express is scheduled to stop at this railway station on its route between Vishakhapatnam and Secunderabad. The centre has also issued orders to allocate ₹347.15 crore for the construction of the advanced domestic terminal building at Rajahmundry airport.
With expectations of rapid infrastructural development, the residential real estate market of Rajahmundry is on a boom, which is expected to continue in the future with the increasing demand for residential properties.
Residential Real Estate vs Other Asset Classes
Given below is a comparison between the pros and cons of investing in residential real estate as compared to other asset classes:
- Residential Real Estate vs Commercial Real Estate
Commercial real estate can fetch you higher profits due to their higher rental prices. However, it is easier to find tenants for residential properties due to the lower rent. Residential real estate also has some tax benefits which commercial properties do not have.
- Residential Real Estate vs Gold
Due to their rental potential, residential properties can be a much more profitable investment option than gold. However, gold has higher liquidity than residential real estate. Thus, ideally, residential real estate investment is better for mid to long-term investment plans.
- Residential Real Estate vs Stocks and Mutual Funds
Stocks can get you higher profits than residential real estate investments. However, stocks are also a high-risk investment option due to the volatility of the market prices. This makes residential real estate investment a much safer investment option.
- Residential Real Estate vs Bonds
Both these asset classes can fetch you high profits. However, bonds have a lower credit risk in comparison to residential real estate. Moreover, bonds have higher liquidity.
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Given in the table below is a comparison between the different asset classes based on the returns, liquidity, risk, volatility and ticket size:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Rajahmundry
Follow these steps to invest in the lucrative residential real estate in Rajahmundry:
Step 1: Fix your investment budget.
Step 2: Search online to find the best-developed localities to buy a residential property.
Step 3: Select some properties and visit them. Look into the infrastructure and amenities available nearby.
Step 4: Choose a suitable property and prepare the documents of ownership like the title deed, possession letter, encumbrance certificate etc.
Step 5: Complete the purchase transaction and pay the required stamp duty and registration charges to become the legal owner of the property.
Being the cultural, tourist and commercial hub in Andhra Pradesh, Rajahmundry is an excellent city to buy residential property. The city has some of the best infrastructure and amenities. Before buying your dream home in Rajahmundry, consult a real estate agent to make the best choice.
Frequently Asked Questions
What is stamp duty?
Stamp duty is a legal tax that is levied by the state government on the purchase of properties. It is payable under the Indian Stamp Act of 1899.
What is home loan insurance?
Home loan insurance is financial coverage on the repayment of home loans. In the case of the unfortunate demise of a debtor, a home loan insurance ensures the repayment of the due amount.
What are the property rates in Rajahmundry?
The property rates in Rajahmundry vary according to the locality. For example, the average property price in AV Appa Rao Road is ₹4400 per sq. foot. In Morampudi, the average property prices are ₹2900 per sq. foot.
What are the other localities where I can buy a residential property in Rajahmundry?
Apart from AV Appa Rao Road and Morampudi, there are several other good localities in Rajahmundry where you can buy residential property. Some of them are Konthamuru, Diwancheruvu and Danavaipet.