Residential Real Estate Investment in Ellore
Table of Contents
Ellore, also known as Eluru is a city in Andhra Pradesh, is situated at the junction of the canal systems of the Krishna and Godavari rivers. This city is a manufacturing city mainly famous for producing wool-pile carpets and hand-woven products.
In addition to this, it is also involved in the production of rice, tobacco, oilseeds and sugar. This provides numerous employment opportunities that attract numerous people to this location. Thus, it becomes easier for you to find the right tenants and earn extra from rent.
Now let us look at the residential real estate opportunities in Ellore.
Top Reasons to Invest in Residential Real Estate in Ellore
Here are some of the main reasons to invest in Ellore residential real estate.
- Great Transportations
Ellore has one of the top 100 booking stations of Indian Railways. Apart from the main railway station (Ellore railway station), There are several other rail stations in the city like Denduluru, Vatluru and Powerpet. The nearest airport from Ellore is Gannavaram Airport (35 km.). Public transport also includes APRCTC buses, auto-rickshaws, minibuses etc.
- Industrial Hub
This city is a hub for major industries like pile carpets, sugar, rice and tobacco. Ellore is mainly known for rugs and pile-woven carpets. Sanivarapupeta, Lakhshavarapupeta, and Tangellamudi are the main areas known for the carpet industry. This city is home to many industries which benefit the economy and employment of this city.
- Educational Opportunities
Ellore city has top schools and colleges offering quality education. Many students from the surrounding villages and towns come to study in Ellore. Some of the major educational institutes are St Joseph Dental College, Sir C.R. Reddy Degree College, ASRAM Medical College, Eluru College of Engineering and Technology etc.
The students coming from outside the city seek rented properties. It indicates a chance of regular income from residential real estate investment.
Investment Opportunities in Residential Real Estate in Ellore
Now let us look at some of the top locations in Ellore that can be beneficial to invest in residential real estate.
It is a census town located 4 kilometres from Ellore city. This is an excellent locality to buy residential properties as it is away from the main city crowd, but very easily accessible to it. The price for residential real estate in Satrampadu starts from Rs. 1333 per square foot.
Vatluru is located on the border of the West Godavari and Krishna districts. It is 6 kilometres away from the main Ellore city and 2 kilometres away from Satrampadu. This is also located on the outskirts of Ellore city and can be a great place for buying a residential property.
The connectivity with the main city and other villages is great. The price is quite reasonable which starts from Rs. 833 per square foot.
- Ramachandra Rao Pet
Ramachandra Rao Pet is a locality in Ellore city that belongs to Andhra Region. It is one of the top locations considering the demands of residential properties. With Ellore Railway Station being the nearest station, this locality has an excellent transportation service. Buses and auto-rickshaws are easily available too.
The price for residential properties in Ramachandra Rao Pet starts from Rs. 2946 per square foot.
Things to Consider Before Investing in a Residential Property in Ellore
Here are some of the crucial things you need to consider before buying a residential property in Ellore:
When searching for a residential property in Ellore, you should conduct proper research on the locality. People usually look for residential properties near main roads, nearby hospitals, banks and shops. Also, check if the neighbourhood is nice. Furthermore, you can hire a broker to understand the localities as per your required amenities.
Before finalising a property, you should take an on-site survey of the property. By doing this you will get an insight if you are getting all the needed facilities like parking space, electricity backup, ventilation, water supply etc.
- RERA Authentication
The Real Estate Regularity Authority Act 2016, mandates the registration of property under RERA in every state. This helps them to ensure complete transparency in the real estate sector.
Every property owner or builder in Ellore must register their properties under the RERA portal of Andhra Pradesh. Make sure the property you are looking forward to purchasing is RERA registered.
Stamp Duty in Ellore
Following are the stamp duty charges of Ellore. If you decide to buy a property in Ellore, you have to pay the following charges.
|Transaction Type||Stamp duty|
|Lease agreements of less than 10 years||0.4%|
|Agreement of sale-cum-GPA||6%|
|Agreement of sale||5%|
|Sale of immovable property||5%|
Registration Charges in Ellore
Following are the registration charges of Ellore, as per the Andhra Pradesh Property and Land Registration Department.
|Description of Instrument||Registration Charges|
|Settlement||0.5 % (Subject to a minimum of ₹1000/-and a maximum of ₹10,000/-)|
|Gift deed (given by family member)||0.5 %|
|Release||0.5% (subject to a minimum of ₹1,000/-and maximum of ₹.10,000/-)|
|Power of Attorney for Consideration||0.5% (subject to a minimum of ₹1,000/-and maximum of ₹20,000/-)|
|Agreement of Sale cum General Power of Attorney||INR 2000/-|
|Power of attorney given to sell/construct/ develop / transfer of immovableproperty||0.5% (subject to a minimum of ₹1,000/-and maximum of ₹20,000/-)|
|Deposit of Title Deeds||0.1% (subject to a maximum of ₹10,000/-)|
|Certificate of sale||0.5%|
|Release of Deposit of Title Deeds||₹1,000/-|
Ellore Residential Real Estate Sector- What’s the Forecast?
Ellore is famous for its wool-pile carpet industries that contribute a good amount to the economy. The carpets made in Ellore, are exported outside of the country to the United Kingdom, United States, Germany and Australia. The commercial centres in Ellore include power Pet, R. R. Pet, and Eluru-1 Town which make a significant increase in employment and economic growth.
The Government has allotted 1.416 square kilometres of land near Valturu for a light combat aircraft facility. The estimated cost for the project is Rs. 2135 billion. This indicates massive economic growth in the upcoming years. With an increase in economic growth, it is sure to attract job seekers from across the states which allows you to find tenants easily.
As a developing city with all the facilities, Ellore attracts builders and investors to invest in the residential real estate sector. Hence, we can say that investment in Ellore’s residential real estate sector is highly profitable.
Residential Real Estate vs Other Asset Classes
Here is a comparison between residential real estate and other assets in terms of liquidity returns and risk.
Residential Real Estate vs Stocks and Mutual Funds
Both Mutual Funds and Stocks offer higher returns than residential real estate but are riskier and witness higher fluctuations. Residential real estate offers generous returns over the long term.
Residential Real Estate vs Gold
Gold can be both a long-term and short-term investment, but residential real is a long-term investment. Real estate offers a consistent monthly income, which is not the case for gold. Residential real estate offers a higher return if done wisely.
Residential Real Estate vs Commercial Real Estate
If you buy residential property on a home loan, you will get better tax benefits than commercial property. While commercial real estate offers higher returns than residential real estate, it is also riskier. Investing in residential property is a safer option due to the easy availability of tenants.
Residential Real Estate vs Bonds
Both residential real estate and bonds are beneficial in terms of returns. In terms of tax benefits, it is also residential real estate which offers better. However, bonds are more secure and allow you to get an estimation of the returns beforehand.
Following is a table of comparison between residential real estate with other assets based on returns, liquidity, risk and volatility.
|Parameters||Commercial Real Estate||Stocks and Mutual Funds||Gold||Residential Real estate||Bonds|
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Steps to Invest in Residential Real Estate in Ellore
Here are the steps you should follow to start investing in residential real estate.
Step 1: First, set a budget for your investment in real estate considering your monetary capability. Calculating the budget based on your income, savings and financial goals helps prevent you from facing financial constraints.
Step 2: Select a few localities which suit you the best for investing. Consider every factor like amenities and connectivity before finalising any property.
Step 3: Take help from a broker to understand the real estate trends and ROIs. Compare the chosen locations and select the one which meets all the criteria.
Step 4: Check and verify all the necessary documents to keep yourself from fraud. Most importantly, check whether the property is registered under the state’s RERA.
Step 5: Next, hire a lawyer to complete all the legal formalities and pay registration and stamp duty charges.
Step 6: Lastly, try to get insurance for protecting the property from any further damage.
As a growing city with major industrial hubs and good connectivity, Ellore is considered a wise option to invest in Residential real estate. There has been a rising demand for residential properties in Ellore in recent times. This presents opportunities for profitable investment as investing in real estate in this city can get you high returns.
Frequently Asked Questions
- Why is Ellore famous?
Ellore, a manufacturing city, is mainly famous for its pile-carpet industries. The carpets made in Ellore have a global demand. Apart from this, this city is also famous for textile and leather production.
- Does Ellore have an airport?
Though there is no airport in Ellore city, The Vijayawada airport is the nearest one at a distance of 38 km. You can easily get multiple modes of transport to commute to this airport.
- What are some locations to invest in residential real estate in Ellore?
Some of the top localities where you can buy a property in residential real estate in Ellore are Vatluru, Satrampadu, New Ashok nagar, Sriram Nagar, Venkatapuram, Ramachandra Rao Pet etc.
- What do you mean by a sales deed?
A sales deed is a legal document used during purchasing of a property as evidence of the sale and the transfer of ownership from a seller to the buyer. This is considered the main document when purchasing a property.