Residential Real Estate Investment in Hubli

Hubli, or Hubballi, is an important and the second largest city on the northern side of the Indian state of Karnataka. It is also known as Chota Mumbai or Vanijya Nagari due to the presence of many small and medium industries here, making it a commercial hub of Karnataka. All these industries generate numerous employment opportunities throughout the year, attracting more people from various locations who look forward to settling down in Hubli. 

Moreover, it is an education hub with some of the best schools and universities, most of which are near residential properties. With such great infrastructural features available, the demand for residential real estate in Hubli is increasing.

Let us know everything about investing in Hubli’s real estate sector. 

Top Reasons to Invest in Residential Real Estate in Hubli

The top reasons to invest in the residential real estate of Hubli, Karnataka, are as follows:

  • Employment Opportunities

Hubli is the commercial hub of Karnataka, acing with its software technology and locomotive industries. Both of these industries are spread all over this city in the form of small and medium enterprises numbering more than lakhs. All these industries end up generating numerous job opportunities for individuals every year. 

  • Transportation Facilities

Hubli has a well-developed transportation system providing connectivity through roadways, railways and airways. It has a rapid bus transit system known as Hubli-Dharwad BRTS, connecting important cities of Karnataka through many highways like NH 63, 218, 4, 67, etc.

Residential Real Estate Investment Opportunities in Hubli

The locations offering the best residential real estate investment opportunities in Hubli, Karnataka, are as follows:

  1. Gokul 

Gokul is a great and affordable locality in Hubli with all the basic amenities like 24×7 electricity and clean water that every residential space needs. It also offers great transportation facilities with bus and taxi stands within 1 km of the residential area.

  1. Keshwapur

Keshwapur is another affordable area in Hubli, having some of the best education centres near the residential areas. This provides easy accessibility for students to travel to schools and colleges. Moreover, this area has some of the best hospitals nearby, which is very helpful, especially in cases of emergency. 

Things to Consider Before Buying a Residential Property in Hubli

The primary things to consider before purchasing a residential real estate property in Hubli, Karnataka are as follows:

  • Infrastructure

Every buyer should evaluate a location’s infrastructure before investing in its real estate. Investing in a location that has modern and sustainable infrastructure with basic amenities and convenience will have a better return potential than properties lacking modern amenities.

  • RERA Verification

The Real Estate Regulatory Authority (RERA) is a statutory body promoting real estate business between buyers and agents; it was notified after the enactment of the RERA Act of 2016. You can check the authenticity of a property and its builder in Hubli by visiting the RERA website of Karnataka.

Stamp Duty Rates in Hubli, Karnataka

The stamp duty rates for real estate property sales in Hubli, Karnataka, are as follows:

Property Value Stamp Duty Rates
Less than ₹20 lakhs 2% 
Between ₹20 lakhs and ₹45 lakhs 3% plus surcharge and cess (surcharge applies on properties only above ₹35 lakhs) 
More than ₹45 lakhs 5% plus surcharge and cess

Registration Charges in Hubli, Karnataka

The registration charges for real estate property in Hubli, Karnataka, is as follows:

Property Value Registration Charges 
Less than ₹20 lakhs 1%
Between ₹20 lakhs and ₹45 lakhs 1%
More than ₹45 lakhs 1%

It is very important to consider the rates of stamp duty and registration as they will be a part of your investment amount.

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

In April 2022, the Karnataka government cut property guidance value by 10% for another three months. This guidance value is the minimum selling price fixed by the government on the property depending on its locality and structure type. This boosted the residential real estate sector of Hubli considerably. 

In addition, some parts of this state have witnessed rental growth of approximately 5.8%, especially in Q1 of FY 2022. All of these changes in the real estate sector of the state have also affected the real estate of Hubli and all other cities individually.

Residential Real Estate vs Other Asset Classes

The comparison between residential real estate and other asset classes has been discussed below: 

  • Residential Real Estate vs Stocks & Mutual Funds

Stock market and mutual funds provide comparatively higher returns but witness great fluctuation, which makes them a highly risky investment option. Moreover, residential real estate offers passive income with direct asset ownership.

  • Residential Real Estate vs Gold

Gold is a commodity that is traded on various commodity exchanges; hence, the returns from gold vary as per global macroeconomic factors. On the other hand, residential real estate is a stable investment option that offers an opportunity to generate passive rental income every month. 

  • Residential Real Estate vs Commercial Real Estate

The vacancy risks in residential properties are higher than in commercial estate due to frequent tenant turnover. However, unlike investments in commercial properties, you can avail tax benefits on residential real estate investment if you avail the property on a home loan. 

  • Residential Real Estate vs Bonds

Bonds have a low credit risk when compared to residential real estate. Additionally, residential real estate investment is less liquid than bonds because of the high transaction costs involved and the time it takes to find a suitable buyer for the property.

A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:

ParametersResidential Real EstateGoldResidential Real EstateStocks & Mutual FundsBonds
ReturnsHighModerateModerateHighModerate
LiquidityLow High Low High Moderate 
RiskLow Low Low High Moderate 
VolatilityLow Low Low High Low 
Ticket SizeHigh Low HighVaries Varies 

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Steps to Invest in Residential Real Estate in Hubli

The steps to invest in residential real estate in Hubli, Karnataka, are as follows:

Step 1: Conduct proper market research and finalise your investment budget.

Step 2: Once you shortlist some budget-friendly sites, visit them to analyse them minutely. 

Step 3: Once you finalise a property, prepare the official documents for the purchase, such as encumbrance certificate, building plan, title deed, sale agreement, etc. 

Step 4: Complete the payment formalities. Make sure to pay the requisite registration charges and stamp duty. 

Step 5: Lastly, consider purchasing insurance for your property to safeguard yourself financially in case your property incurs any damages. 

Final Word 

The demand for residential real estate in Hubli, Karnataka, is increasing due to its developed connectivity, infrastructure and ease of living. This city also has great educational facilities and an abundance of job opportunities due to the presence of numerous industries. However, it is still very important to undergo proper market research before purchasing a property to avoid fraud and losses.

Is Hubli an urban or rural area?

Hubli is an urbanised city with a population of approximately 10 lakh. It is the second fastest growing city and industrial hub in Karnataka after its capital city. This city has more than 1000 small and medium industries, generating numerous employment opportunities every year. 

What is the average real estate property price in Hubli?

The average real estate property price in Hubli is approximately ₹2900 to ₹3000 per square foot, which can go up depending on the location area. However, property prices here start from around ₹99 per square foot, which in total becomes approximately ₹5 to ₹6 lakh per property. 

What documents are required for registering a new property in Karnataka?

The documents required for registering a new property in Karnataka or any other Indian state are sale deed, NOC from builder and bank, completion certificate, building plan approval, PAN Card and Photographs. Other than this, form 60 and payment proof of stamp duty and registration charges are required for inspection purposes.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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