Guide for Ramgundam Residential Real Estate Investment

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

Ramgundam can be called a ‘powerful’ city in Telangana as it houses one of the largest thermal and solar power operations in India. It is situated in the Peddapalli district which has large coal deposits, which fuel the major power plants in Ramgundam.

This city is an urban agglomeration on the list of cities under the AMRUT scheme. It is also the 6th largest city in Telangana in terms of population with 2,29,644 people and the average literacy rate here is approximately 69%

This city has a balanced temperature and climate and receives southwest monsoon rainfall annually. It is also a manufacturing site for fertilisers and other agricultural products and is a fast-developing city with plenty of employment opportunities. All of these factors increase the demand for residential housing in Ramgundam.

If you want to buy a residential property in this city keep reading the top reasons given below to understand why you should invest in Ramgundam residential real estate.

Top Reasons to Invest in Ramgundam Real Estate

Ramgundam is a rapidly developing city in Telangana and you can invest in a residential property in this city for the following reasons.

  • AMRUT Scheme

Ramgundam is one of the cities that have been selected under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Scheme. It is a Central Government scheme that aims to ensure access to proper infrastructure and transportation for the citizens of selected cities. 

In addition, it focuses on ensuring the maintenance and development of amenities like parks and other open spaces. Hence, Ramgundam being a part of the AMRUT Scheme makes it eligible for various development projects that will boost the city’s real estate sector.

  • Access to Thermal Energy

Situated near the Godavari Valley coalfields, Ramgundam hosts one of India’s largest thermal power stations operated by the National Thermal Power Corporation (NTPC). There are several thermal power plants around this area and hence, you can expect uninterrupted electricity service in this city. 

  • Good Returns

Residential properties in this city have the ability to offer good returns on your investment. In addition to having a home at a location with a good standard of living, you can also get the opportunity to earn good returns from your asset when you sell it in the future.

  • Passive Income

By investing in a residential property in Ramgundam you can earn passive income by renting it out. In addition to the benefits of owning a home, you can get regular income from rent.

Residential Real Estate Investment Opportunities in Ramgundam

Here are some of the best locations for residential properties in Ramgundam:

  • Godavarikhani

This is a developed locality in this city and an education hub. It is ideal for residential real estate investment as it has good infrastructure and connectivity. The average value for a property in this locality is approximately ₹25 lakh.

  • Laxmi Nagar

It is a neighbourhood in Ramgundam with modern infrastructure and good connectivity to the rest of the city. It is near NH- 63, NH- 363 and the Ramgundam Railway Station and thus, is a good choice for residential real estate. The average cost of properties here is ₹45 lakh.

Things to Consider before Buying a Residential Property in Ramgundam

If you want to buy a residential property in Ramgundam, you should look into the following factors to ensure a safe and profitable investment:

  • Infrastructure

Infrastructure and services are very important for a residential property. Access to modern facilities, developed roads, water supply, etc., is essential for a good living experience. Thus, you should check the infrastructure availability and quality near your property.

  • Security

Safety is a crucial factor when it comes to residential planning. While buying a residential property, you must ensure the neighbourhood you have selected has the latest security features and access to surveillance. It is essential for the safety of you and your family.

  • Property Developer

Another important factor for your residential real estate investment is to choose a reputed builder for handling the overall project. Experienced developers offer goodwill and assurance on the use of high-quality materials and construction work. People prefer buying a property that is built by a reputed builder as they will get good returns for their investment.

  • Connectivity

Access to the rest of the city is important for a good living experience. You should ensure good road connectivity and access to a smooth public transport network while investing in a residential property in Ramgundam.

  • RERA Verification

You should always verify the details of your property and its builder from the Real Estate Regulatory Authority (RERA) in your state. The RERA is a statutory body that is formed under the Real Estate Regulatory Authority Act, 2016.

It is responsible for monitoring the transparency of real estate activities in a state and safeguarding the interest of investors. Before selecting a property in Ramgundam, you should check its authenticity from the official website of RERA Telangana.

Stamp Duty in Ramgundam

Applicable stamp duty charges in Ramgundam are mentioned below.

Type of DeedStamp Duty Charges
Sale Deed (Gram Panchayat)5.5%
Sale Deed (Other Areas)5.5%
Mortgage with Possession (Gram Panchayat)2%
Mortgage with Possession (Other Areas)2%
Mortgage without Possession0.5%
Sales Agreement with possession5.5%
Sales Agreement without possession0.5%
Power Of Attorney to sell immovable properties1%
Agreement for building construction0.5%

Registration Charges in Ramgundam

Registration charges applicable to different types of deeds in Ramgundam are given in the table below.

Type of DeedRegistration Charges
Sale Deed (Gram Panchayat)2%
Sale Deed (Other Areas)0.5%
Mortgage with Possession (Gram Panchayat)1.6%
Mortgage with Possession (Other Areas)0.1%
Mortgage without Possession0.1%
Sales Agreement with possession0.5% (minimum ₹1,000 and maximum ₹50,000)
Sales Agreement without possession0.5% (minimum ₹1,000 and maximum ₹50,000)
Power Of Attorney to sell immovable properties0.5% (minimum ₹5,000 and maximum ₹1,00,000)
Agreement for building construction0.5% (minimum ₹5,000 and maximum ₹50,000)

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

As Ramgundam is a power plant hub in South India, it is set to become one of the major contributors to the “Bijli Mahotsav 2047” mission. The Prime Minister of India has dedicated a 100-megawatt floating solar power plant in Ramgundam under the NTPC. This is important as it will increase the electricity services to more households in nearby cities and develop the infrastructure of areas around the power plants.

In addition, this city is also a fertiliser hub and thus several companies that deal in agricultural products have operating units in Ramgundam. This is also a beneficial factor for the real estate sector in this city as an increase in commercial activities also increases the demand for real estate and influences infrastructure development positively.

As part of the AMRUT scheme, this city is set to get direct aid and benefits from the Central Government to develop water supply and sewage infrastructure along with other factors. Thus, overall it is a great time to invest in residential properties in Ramgundam to earn profits over time.

Residential Real Estate vs Other Asset Classes

Residential real estate is a profitable asset that offers you good returns in long term. However, you should also check out the different types of asset classes mentioned below to learn their advantages and risk factors.

  • Residential Real Estate vs Bonds

Bonds are types of market securities that offer fixed but low to moderate returns at low to moderate risks. On the other hand, residential real estate offers comparatively higher returns at higher risks. Many investors prefer bonds to keep their capital for a temporary period as high-rated bonds usually provide decent returns. 

If you want to invest in a high-rated bond, check the list of the best bonds on our homepage.

  • Residential Real Estate vs Gold

Residential real estate investments offer moderate returns at moderate risks to investors. Gold investments offer comparatively lower returns than residential properties but at lower risks.

 You can earn returns from gold only through the appreciation of asset value with the exception of Sovereign Gold Bonds (SGBs) as they also offer annual interest as well to investors. Real estate investments offer the scope of additional income other than return on investment.

  • Residential Real Estate vs Stocks & Mutual Funds

Stocks and mutual funds offer higher returns compared to most other asset classes at high-risk factors. Residential real estate in comparison offers moderate returns at moderate risks in the long term. Investing in stocks offers you portfolio diversification, unlike real estate.

  • Residential Real Estate vs Commercial Real estate

Residential real estate offers moderate returns similar to commercial real estate. However, the returns for commercial real estate are higher while the risk for residential real estate investments is lower than for commercial real estate. Commercial real estate has higher demand than residential real estate in the market.

The table below compares residential real estate and the other asset mentioned above based on returns, liquidity, risks, volatility, and ticket size.

ParametersResidential Real Estate Stocks & Mutual FundsCommercial Real EstateBonds Gold
LiquidityLowHighLow Moderate High 
RiskLowHighLow Moderate Low 
VolatilityLowHighLow Low Low 
Ticket SizeHighVariesHigh Varies Low 

Steps to Invest in Residential Real Estate in Ramgundam

Buying a residential property can be a challenging task as there are several important factors to fulfil. However, you can buy a residential property in Ramgundam by following the simple steps given below.

Step 1: Appoint a broker to help you find the best property in Ramgundam. Experienced brokers have a good network of available properties, thus it is an advantage to take the help of a broker.

Step 2: Set a budget or price range for your investment. This will help you narrow your search criteria based on property prices.

Step 3: You should research the real estate market and identify properties that suit your requirements.

Step 4: Visit the shortlisted properties and check the amenities available with the properties.

Step 5: Finalise a property if it fits your financial and location requirements.

Step 6: Check the RERA website to verify the property details.

Step 7: Verify the property documents provided by the seller.

Step 8: Pay your broker’s commission and complete payment for your property.

Step 9: Finish the registration process and pay stamp duty charges as applicable.

Step 10: Buy an insurance plan to protect your residential property financially.

Final Word

Ramgundam is a good location in Telangana for residential real estate investment as it offers the benefits of a rapidly growing infrastructure under the AMRUT and other development schemes. However, while investing in a residential property you must check the factors that affect the living experience and profitability of your residential property investment.

Frequently Asked Questions

How many cities are there under the AMRUT scheme?

Including Ramgundam, there are around 500 cities that fall under the AMRUT scheme. The Central Government aims to provide development aid to all of the cities under the initiative.

What is the capacity of the thermal power plant in Ramgundam?

The NTPC Super Thermal Power Station in Ramgundam is the largest in South India. It has a capacity of 2,600 megawatts.

What language is spoken in Ramgundam?

Ramgundam is a Telugu-speaking city in the majority. However, English, Hindi, Tamil, and several other languages are also spoken in this city.

What is meant by urban agglomeration?

A continuous urban spread of a town and its adjoining localities with a total population of at least above 20,000 people is called urban agglomeration.

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