Guide for Rajkot Residential Real Estate Investment
Rajkot in Gujarat is the 7th fastest growing city in the world as of March 2021. It is also the 6th cleanest city in India. This city has two railway stations and connects well with the Gujarat State highway. Several private bus operators connect Rajkot with other cities in Gujarat and the rest of the country.
This city also has its airport, and another international airport is on its way to being built. In addition, there are several reputed educational institutes, one of which is AIIMS Rajkot.
Let us check out why investing in residential real estate in Rajkot might be a profitable venture for you.
Top Reasons to Invest in Rajkot Real Estate
Here are some reasons why you should consider investing in Rajkot’s residential real estate:
Rajkot has an extensive network of roads. It has both public and private transportation buses. This city has national and state highways passing through it, which helps to connect it to the major cities in the country. It also has a railway station with frequent trains to Mumbai, Delhi, Kochi and Bhopal.
The Rajkot Urban Development Authority (RUDA) was formulated to ensure the systematic development of areas under its jurisdiction, focusing on infrastructure facilities. Education and healthcare facilities are notable in this city. Several renowned schools, colleges, and universities make it apt for residential real estate investment.
Residential Real Estate Investment Opportunities in Rajkot
Here are some localities in Rajkot that are suitable for residential real estate investment:
One of the best localities in Rajkot, it offers a luxurious residential environment to its residents. All basic facilities like medical shops, stationery shops, and restaurants are in the vicinity. There are schools, colleges, hospitals and police stations nearby as well. It is a clean and hygienic area with no water shortage. The rate of residential properties in this locality ranges from around ₹6,000 per square foot.
It is a prime locality and well-connected to other parts of the city. It is highly accessible due to the various public transport options. Apart from that, schools, colleges, markets, hospitals, and banks are in the vicinity. Property rate here can be as high as ₹81,000 per square foot.
Things to Consider Before Buying a Residential Property in Rajkot
Here are some points that you might want to keep in mind before opting for a residential property in Rajkot:
The Real Estate Regulatory Authority (RERA) is a statutory body formed after the enactment of The Real Estate (Regulation and Development) Act of 2016; it monitors the real estate business in India It aims to promote accountability and transparency in India’s real estate industry. Therefore, before opting for a property, always check whether it adheres to the norms of RERA. You can find details about a property in Rajkot and its owner/builder by visiting the RERA portal of Gujarat.
It is important to thoroughly research the builder’s profile and do some digging before purchasing a property. Review the developer’s website and check previous client reviews to analyse the builder’s goodwill.
Stamp Duty in Rajkot, Gujarat
The Gujarat Revenue Office (GRO) determines the rate of stamp duty in Rajkot as well as revises them periodically. Following is the rate of stamp duty applicable in Rajkot:
|Joint buyers (Male + Female)||4.9%|
|Joint buyers (Female + Female)||4.9%|
|Joint buyers (Male + Male)||4.9%|
Registration Charges in Rajkot, Gujarat
It is mandatory to pay registration charges in Rajkot to transfer the ownership of the property to your name. Here are the registration charges applicable in Rajkot:
|Joint buyers (Male + Female)||1%|
|Joint buyers (Female + Female)||NA|
|Joint buyers (Male + Male)||1%|
Rajkot’s Residential Real Estate Sector Outlook
Real estate in Rajkot is growing tremendously with large investments by top real estate players. The city’s real estate sector has received two major incentives in the form of government assistance. One of them is tax benefits for affordable housing. Further, there is a deduction of interest on the loan. In addition, there is a further tax exemption for migrant workers, making rental housing more affordable.
There have been further announcements for indirect support measures like an injection of funds for infrastructure development. It will boost the overall capital appreciation of properties in Rajkot. Therefore, investing in residential real estate in Rajkot might be profitable.
Residential Real Estate vs Other Asset Classes
Let’s compare residential real estate investment to other asset classes:
Residential Real Estate vs Stocks & Equity Mutual Funds
Stocks and Equity mutual funds offer much higher returns in comparison to residential real estate. However, equity-oriented investments can be highly risky as the returns fluctuate as per market sentiments. On the other hand, real estate investment acts as a stable source of passive income.
Residential Real Estate vs Commercial Real Estate
Residential real estate offers better tax benefits than commercial real estate if the property is availed on a home loan. However, returns are higher in the case of commercial real estate as the tenants are usually businesses and companies.
Discover More: Guide for Rajkot Commercial Real Estate Investment
Residential Real Estate vs Bond
Real estate offers much higher returns than bonds Investment; however, real estate is less stable and secure than bonds.
Are you Interested in investing in bonds and earning a fixed income of around 9 to 11%? If yes, register on our platform today and start investing in India’s top-rated bonds.
Residential Real Estate vs Gold
Real estate offers you the opportunity to earn passive income every month, which is not possible in the case of gold. Moreover, gold prices face volatility as the prices primarily depend on global market sentiments.
Following is the tabular representation comparing different types of assets based on returns, liquidity, risk, volatility and ticket size:
|Parameters||Residential Real Estate||Stocks & Equity Mutual Funds||Bonds||Commercial Real Estate||Gold|
Steps to Invest in Residential Real Estate in Rajkot
Here are the steps that you can follow if you want to start investing in residential real estate in Rajkot:
Step 1: Finalise your investment budget and look for properties that suit your budget and the purpose of your investment.
Step 2: Shortlist a few locations and plan a field visit to each one. Assess the properties based on their infrastructure, connectivity and proximity to hospitals and educational institutes.
Step 3: After finalising a property, prepare the necessary documents such as the title deed, encumbrance certificate, sale agreement, etc.
Step 4: Complete the payment process. Make sure to pay the applicable stamp duty and registration charges.
Read More: Guide for Najafgarh Real Estate Investment
Real estate is one of the most well-known investment options to help secure your future. Due to the trend of generating passive rental income from real estate properties, the real estate market is facing rapid development. However, the property you choose must adhere to RERA norms so that you do not face any legal complications in the future.
Frequently Asked Questions (FAQs)
Do I need to pay stamp duty if the property is transferred, or is a gift?
Yes, you must pay stamp duty even if you have received the property as a gift. However, in some states like Haryana and Delhi, female transferors are offered a concession in stamp duty.
What taxes do I need to pay while buying a property?
When you are purchasing a property, there are some taxes that you need to pay, such as TDS or Tax Deducted at Source, Stamp Duty and applicable service tax.
What documents are required to buy a resale property?
The documents required for buying a resale property are the sale deed, latest tax receipt, possession certificate, encumbrance certificate, occupancy certificate, building plan approval, and clear and marketable title.
What documents are necessary for registration of a new apartment?
Documents such as a No objection certificate from the builder and bank, completion certificate, building plan approval, sale deed, PAN card and photographs are necessary for the registration of a new apartment.