Residential Real Estate Investment in Narela￼
Narela is a place located in the northern part of Delhi. It was developed as the third mega sub-city of the Delhi Development Authority (DDA) and thus has enhanced infrastructural features. Moreover, Narela serves great connectivity to many important places, especially through the Grand Trunk Road, which also offers good transport facilities.
For all these reasons, the demand for residential real estate in Narela is increasing, and investors are getting attracted here.
Let us know everything about investing in residential properties in Narela.
Top Reasons to Invest in Residential Real Estate in Narela
The top reasons to invest in the residential real estate of Narela, Delhi, are as follows:
Narela is placed in such a location that both roadways and railways connecting important places are nearby, saving time during transportation. It also falls under the Delhi Metro’s Master Plan IV, with Badli as its nearby metro station.
Being a sub-city of the DDA, Narela enjoys great infrastructural facilities like hospitals, marketplaces, education centres, parks, etc. It also provides basic amenities like 24×7 electricity and clean water, both of which are necessary for residential spaces.
Residential Real Estate Investment Opportunities in Narela
The locations offering the best opportunities for residential real estate investment in Narela, Delhi are as follows:
- Swatantra Nagar
The most attractive feature of Swatantra Nagar is that its residential area is close to the Narela railway station. Moreover, some of the best schools are located in this area, providing easy accessibility to students living here.
- Shivaji Nagar
The area of Shivaji Nagar is near the Badli metro station, providing easy accessibility. It also has amenities available nearby, like hospitals, parks, shopping malls, etc., making it a luxurious place to live.
Things to Consider Before Buying a Residential Property in Narela
The things to consider before purchasing a residential real estate property in Narela, Delhi, are as follows:
- RERA Verification
The Real Estate Regulatory Authority (RERA) is a statutory body whose aim is to promote transparent and authentic real estate business between buyers and agents after it was notified by the RERA Act 2016. You can check the authenticity of a property and its builder in Narela by visiting the RERA website of Delhi.
- Builder’s Background
If you are planning to invest in any builder’s commercial property, check their past projects and their status in the market. You must also check whether there are any ongoing court cases against the builders or the chosen property.
Stamp Duty Rates in Narela, Delhi
The stamp duty rates for real estate property sales in Narela, Delhi, are as follows:
|Gender||Stamp Duty Rates|
|Joint (Male + Female)||5%|
|Joint (Male + Male)||5%|
|Joint (Female + Female)||5%|
Registration Charges in Narela, Delhi
The registration charges for real estate property in Narela, Delhi, is as follows:
|Gender||Stamp Duty Rates|
|Joint (Male + Female)||1%|
|Joint (Male + Male)||1%|
|Joint (Female + Female)||1%|
It is very important to consider the rates of stamp duty and registration as they will be a part of your investment amount.
Narela Residential Real Estate Sector: What’s the Forecast?
The entire region of Delhi-NCR witnessed the highest increase in housing prices across India in FY 2022-23. The housing prices appreciated by 6% from the previous quarter during July to September (Q2) of FY 2022-23. Moreover, the properties were sold at an average of ₹7,741 per square foot, creating a huge turnover. All these created a great impact on the real estate future of Narela as well, in a very positive way.
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
Investment in the residential real estate industry is less volatile than investing in stocks and mutual funds. Moreover, stocks and mutual funds witness higher fluctuations than residential property, making it tough for investors to estimate the returns.
- Residential Real Estate vs Gold
Residential real estate is a stable investment option that offers the opportunity of generating passive income. Returns from gold investment fluctuate as they depend on global macroeconomic factors.
- Residential Real Estate vs Commercial Real Estate
You can avail tax deduction on residential real estate investment if the property is availed on a home loan. Although commercial spaces can be leased for longer tenures, the entire documentation process of leasing out commercial real estate can be complicated and complex.
- Residential Real Estate vs Bonds
Bonds have a low credit risk than residential real estate properties. Additionally, residential property investments are less liquid than bonds due to the higher transaction costs involved with residential properties and the long time it takes to find a suitable buyer.
A tabular representation to compare the assets based on returns, liquidity, risk, volatility and ticket price is as follows:
|Parameters||Residential Real Estate||Gold||Residential Real Estate||Stocks & Mutual Funds||Bonds|
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Steps to Invest in Residential Real Estate in Narela
The steps to invest in residential real estate in Narela, Delhi, are as follows:
Step 1: Finalise your investment budget.
Step 2: Conduct proper market research to come up with a list of locations that have high development potential.
Step 3: Plan a field visit to each of the sites to analyse each site minutely in terms of infrastructure and amenities.
Step 4: Once you finalise a residential real estate property that is suitable, prepare the official documents such as encumbrance certificate, building plan, title deed, sale agreement, etc.
Step 5: Make sure to complete the payment process. Remember to complete registration and stamp duty formalities.
The residential real estate sector of Narela has quite a strong and promising market demand due to its rapid infrastructural development. The city also provides great connectivity and transportation and has all the basic amenities that residents need on a daily basis. However, before taking any investment decision, you should consider conducting a thorough market analysis or taking help from real estate agents or consultants.
Frequently Asked Questions
Q1. Is Narela an urban or rural area?
Ans. Narela is an urban area which can also be termed the fastest-growing posh area of northern Delhi. Almost 70% to 75% of the people in this city live in the urban side of Narela, whereas the remaining lives on the undeveloped side. However, the Government is taking steps to bring infrastructural changes in both the rural and urban sides of Narela.
Q2. What is the average real estate property price in Narela?
Ans. The average real estate property price in Narela is approximately ₹4000 per square foot, which in total can become lakhs depending on the location and property size. However, property prices here start from around ₹900 to ₹1000 per square foot, which is a fair range.
Q3. What are the documents required to register a property in Delhi?
Ans. The documents required for registering a real estate property in Delhi are a sale deed, e-stamp paper, e-Registration fee receipt, Form 60, NOC, proof of TDS payment, etc. Other than this, you require identity and address proofs of the buyer, seller and witnesses with two passport-sized photographs of them on two copies of documents.
Q4. Are there tax benefits on registration and stamp duty rates in Delhi?Ans. The tax benefits or exemptions available on registration and stamp duty rates in Delhi come under Sec 80C of the Income Tax Act, 1961. You can avail a maximum deduction of ₹1.5 lakh under this section.