Guide for Raurkela Residential Real Estate Investment
Rourkela is the third largest city in Odisha. It lies in the Sundargarh district, and it is a well-planned city, hosting major industries and educational institutions.
The city is renowned for housing the Rourkela Steel Plant, one of the largest steel plants in India, operated by the Steel Authority of India (SAIL). With a capacity of over 2 million tonnes, it employs the most number of people among any industry in Rourkela.
Besides employment, many people come to Rourkela as it is the knowledge hub of Odisha. Reputable educational institutions in this city include the Rourkela Institute of Management Studies, the National Institute of Technology and the Biju Patnaik University of Technology (BPUT).
Furthermore, Rourkela is also well-connected with nearby cities via NH-23 and SH-10. The Airport Authority of India (AAI) has recently invested ₹28 crore for the development of Rourkela Airport, which will further boost the city’s connectivity.
These factors act as a magnet to attract both residential and commercial real estate investors to Rourkela. Read this article to learn about the perks of investing in residential real estate in Rourkela.
Top Reasons to Invest in Raurkela Real Estate
Here are a few important reasons to invest in residential real estate in Rourkela.
- Cleanest City
Rourkela occupies the position of the cleanest city in Odisha and the 45th cleanest among 382 Indian cities. It hosts well-equipped public washrooms with sanitary pad vending machines and incinerators. This helps maintain hygiene throughout the city. This city is also trying to treat waste with new micro-composting pits.
These facilities ensure sustainable living in the city with an attempt to lower water and airborne diseases.
- Smart City Project
Rourkela has been selected as a smart city in Phase 3 of the National Smart City Mission. This will improve the quality of local life quality and boost the real estate sector. This mission will be achieved by maintaining cleanliness, a swift transportation facility and growing scope of employment.
Grievance Cells are being set up to ensure residents’ safety and security, especially that of women. These factors influence people to find their perfect home in Rourkela.
- Affordable Living
As a Tier-II city, life in Rourkela is quite affordable than most other metropolitan and smart cities in India. Facilities like healthcare, transportation and house rent are comparatively cheaper than in Tier-1 cities. Therefore, living in Rourkela does not act as a financial burden for Individuals in middle-income families.
Residential Real Estate Investment Opportunities in Raurkela
Here are some localities in Rourkela for you to invest in residential real estate.
Vedvyas lies at the confluence point of rivers Sankha and Koel, and it is a popular tourist spot in this city. Besides that, Vedvyas offers abundant opportunities to invest in residential properties. You can invest in properties like flats, apartments, and residential land to earn high ROI from residential real estate in Vedvyas.
Ranchi Airport is the nearest airport to Vedvyas. This place is also 15 km away from Rourkela Railway Station. Property prices in Vedvyas vary approximately from ₹38 lakh to ₹1.5 crore.
- Chhend Colony
This is an industrial-cum-residential colony in Rourkela. Some prominent localities in Chhend Colony are Madhusudan Nagar, Kalinga Vihar, and Gopalbandhu Nagar. Also, this place lies very close to Rourkela Steel Plant and Rourkela Airstrip.
Rourkela Management Institution also has private residential plots in Chhend Colony. Moreover, renowned educational institutions like the Pharmacy College of Kanak Manjari Institute of Pharmaceutical Sciences and Universities are located here.
You can invest in residential properties like flats, apartments and independent houses in Chhend Colony. Property prices for Chhend Colony range from ₹75 lakh to ₹1.6 crore.
Things to Consider before Buying a Residential Property in Raurkela
Here are a few essential points you need to remember before investing in residential real estate in Rourkela:
- Lease Structure
A lease is a legal contract that binds the tenant and current owner of a property under specific terms and conditions. Consider seeking assistance from a legal advisor to understand the lease structure comprehensively. Knowing these clauses will help safeguard you from any exploitation in the long run.
- RERA Verification
The Real Estate Regularity Authority Act (2016) ensures transparency in the real estate industry with its mandate for a Real Estate Regularity Authority (RERA) in every state. Every commercial and residential property in India should be registered under the RERA Act.
All the builders and brokers in Rourkela must register their properties in the RERA portal of the Odisha Government. You can check the authenticity of your shortlisted properties on this portal.
- Safety and Security
Safety is a prime concern for people searching for homes. Therefore, if your residential property offers all the facilities of a safe living space, it is likely to earn more ROI than properties devoid of these facilities.
Therefore, while conducting on-site research of the property, ensure it has safety precautions, CCTV cameras, fire extinguisher systems, and more. Furthermore, you must conduct a locality check to ensure your property’s safety from robbery or other major crimes.
Stamp Duty in Raurkela
The table below displays the stamp duty charges applicable in Rourkela.
|Sales Deed||5% of the consideration|
|Power of Attorney||₹100|
|Lease of up to 5 Years||2% of the consideration|
|Lease of over 5 Years||5% of the consideration|
Registration Charges in Raurkela
Here are the registration charges applicable to residential properties in Rourkela:
|Sales Deed||2% of the consideration|
|Sales Agreement||2% of the agreement value|
|Power of Attorney||₹250|
|Partnership||2% of the capital value|
|Lease up to 5 Years||2% of the consideration|
|Lease of over 5 Years||2% of the consideration|
Raurkela Residential Real Estate Sector- What’s the Forecast?
Rourkela is considered the industrial capital of Odisha. This city hosts major industrial plants and software companies contributing to Odisha’s economy. These industries also act as employment hubs and attract residents from other cities of Odisha, West Bengal, Bihar and other neighbouring cities.
NTPC SAIL Power Company Limited, Larson and Toubro Fabrication Plant, and Rourkela Steel Plant are important Steel industries in Rourkela. In addition, there are many small-scale setups all over the city producing handicraft items like soft toys, stone carvings, Bonsai trees, decorative wall pieces, etc.
This city has excellent infrastructure and commutation facilities via rail, air and water. As a tier-II city, Rourkela offers an affordable but quality lifestyle. The Rourkela Smart City Ltd (RSCL) has undertaken several major development projects worth ₹800 crore, which will boost the local real estate demand.
These factors make Rourkela a perfect spot for people to earn high ROI from residential real estate investments.
Residential Real Estate vs Other Asset Classes
Here are some differences between residential real estate and other asset classes based on ROI, risks and liquidity.
Residential Real Estate vs Bonds
Bonds have a more liquid market than residential properties. This is because the transaction costs of residential properties make it time-consuming to find suitable tenants/buyers. Furthermore, investing in bonds is comparatively less risky than residential properties. However, residential properties tend to offer a higher rate of returns.
Residential Real Estate vs Stocks and Mutual Funds
Stocks and mutual funds have a highly volatile market. As a result, you can earn good returns or face considerable losses in the stock market. On the contrary, residential properties offer relatively stable returns and are not as risky as stocks and mutual funds.
Residential Real Estate vs Gold
Gold has a highly liquid market as it is easy to buy and sell. Also, gold is a good asset for both long and short-term investments. On the other hand, residential real estate has an illiquid market and is only suitable for long-term investments. However, you can fetch much higher returns from investing in residential real estate than gold.
Residential Real Estate vs Commercial Real Estate
Commercial real estate is more expensive than residential real estate. As a result, the former brings more ROI than the latter. However, owing to their soaring prices, commercial properties carry higher credit risks. Regarding tax benefits, residential real estate offers more benefits than commercial ones.
The table given below compares the above asset classes based on their risks, volatility, liquidity, and ticket price.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Raurkela
Here are some basic steps you can follow to invest in residential real estate in Rourkela:
Step 1: Fix a budget to invest in residential properties.
Step 2: Shortlist a few locations and conduct on-site research to analyse the ground situation closely.
Step 3: Visit these locations for a thorough understanding of your benefits. Also, seek help from real estate consultants to know about prospects in the area.
Step 4: Finalise and purchase a location after checking its RERA authenticity.
Step 5: Collect the necessary documents like Sale Deed and Encumbrance Certificate.
Step 6: Pay the seller and all additional charges like stamp duty and registration charges to transfer the property under your name. Also, consider insuring your property to protect it from future damage.
As the cleanest city in Odisha and an emerging smart city, residential real estate in Rourkela can fetch you substantial returns. However, while investing, you need to consider the risks associated here. Furthermore, after purchasing the residential property, consider covering the same with an insurance policy to protect your finances in case of any damage to the property.
Frequently Asked Question
Why is it important to register a property under RERA?
The Real Estate Regularity Authority Act makes it mandatory for builders and brokers to register their properties under the RERA portal. This portal is available on every State Government website. This norm is mandatory for all commercial and residential properties in India.
What are the benefits of RERA registration?
Every property registered under RERA has a uniform carpet size. Tenants can also confirm the property’s authenticity before applying. Furthermore, a RERA-registered property lowers the risk of a builder’s bankruptcy.
What are the famous educational institutions in Rourkela?
The National Institute of Technology (NIT) and the Biju Patnaik University of Technology are two prestigious universities in Rourkela for higher education.
What are some popular locations in Rourkela to invest in residential properties?
Civil Townships, Chhend Colony, Vedvyas, Koel Nagar, and Jagda, are a few popular locations in Rourkela to invest in residential real estate.