Residential Real Estate Investment in Shimoga

Shimoga is an urban city in Karnataka, which is popular for its tourism and culture. The famous Jog falls is located in this city, which is its most popular tourist destination. In addition to this, there is a vast coverage of greenery and availability of exceptional flora and fauna. The adjacent Shettihalli Wildlife Sanctuary is a vast forest area covering around 395.2 square kilometres. 

Apart from its tourism and biodiversity aspects, Shimoga is also among the selected smart cities in India. Hence it is developing at a rapid rate in terms of infrastructure and living conditions. Apart from this, there are several other factors that make this city ideal for residential real estate investments. Keep reading to know the available opportunities! 

Top Reasons to Invest in Shimoga Real Estate

Here are some of the reasons why you should consider investing in Shimoga’s residential real estate sector:

• Moderate Climate Conditions

Shimoga is a city with balanced climatic conditions. The average annual temperature here remains around 26 degree Celsius. Due to its tropical climate, it receives rainfall from June-October. Most people here experience a pleasant climate throughout the year with few exceptions when it is too hot or too cold. Thus, this city is an excellent location for buying residential properties.

• Tourism Hotspot

Tourism is one of the primary economic parameters in this city. Shimoga has a culturally strong history and is home to several breathtaking waterfalls, dams, and hill stations. Due to this reason, several tourists flock to this city to visit the beautiful tourist spots and experience its extensive flora and fauna. 

This can be beneficial for residential real estate investors as one can earn significant passive income from renting property to visitors. In addition, the State Government and local administrative bodies will primarily focus on developing the infrastructure and essential facilities in this city. Therefore, residential property investments in this city will be surely worth it. 

• Focus on Literacy and Education

As Shimoga has an average literacy rate of 80%, it is a city with an undivided focus on education and progress. Shimoga has more than 20 educational institutions including Government and private entities. Colleges and Universities for higher education, schools for primary education, and several sports facilities for all-around development are available here. Thus, one can plan a good future for their children and their education in this city.

• Passive Income

Buying a residential property is also a financial investment to grow your wealth in addition to having a home. Hence it is important to consider that, in Shimoga, you can earn passive income by renting your property as there is always a positive demand for it.

Residential Real Estate Investment Opportunities in Shimoga

You can look into the areas mentioned below to invest in the best residential properties in Shimoga:

• Sagara

Sagara is one of the well-developed areas around Shimoga. It enjoys exposure to the tourism industry and has well-established connectivity to the rest of Karnataka via roadways like NH-69 and Hulikal Ghat Roads. Additionally, it has multiple bus facilities other than an elaborate private transportation system. 

The Sagara Jambagaru Station is also present nearby which facilitates connectivity to all major parts of the state. The average cost of properties in this locality is ₹50 lakh.

• Vinoba Nagara

Vinoba Nagara is a developing residential area in the city that has access to good infrastructure and all the essential services. The KGP Hospital which is a popular Health care institution in Shimoga is located here in this locality. 

It is well connected via roadways and railways to rest of the city and the average cost of property here is ₹50 lakh.

Things to Consider Before Buying a Residential Property in Shimoga

Buying a home for your family is a crucial task. Therefore you should consider the list of factors mentioned below before finalising any property. In addition, taking note of these aspects also improves your scope of return from a real estate investment:

• Security Facilities

If you are looking to buy a home for your family, safety, and security are one of the most important features. Thus, before you invest in a property, you must ensure the availability of security facilities in your selected neighbourhood. In addition, you should also ensure access to essential security authorities and the presence of surveillance in your chosen locality.

• Civic Amenities

In residential real estate, the presence of basic civic amenities is also an important factor. The area you choose must have proper facilities for water, electricity, sewage, etc. for people to live comfortably. 

• Builder Reputation

Always prefer buying a residential property from an established builder. Property developers with long-term market presence have goodwill. Thus properties built by them have better demand in the market. In addition, this also ensures good-quality construction and no risk of foul play. Hence, you can invest your capital without thinking about unnecessary risk factors.

• Connectivity

Connectivity is a crucial factor for real estate investments. Thus, you should prefer buying a property in an area that has teh best facilities in this regard. Access to all parts of the city via roads, and railways along with the availability of public transport options are important for a good living experience. You should also consider the point of access to airports and other important facilities while investing.

• Location

Other than the primary factors that are directly related to your property, you should also consider the location you are investing in. Prime neighbourhoods are always preferable as they have good security and connectivity. In addition, chances of property value increasing, in the long run, are also better in such areas. 

• RERA Registration

The Real Estate Regulatory Authority (RERA) is a state government body formed under the Real Estate Regulatory Authority Act, of 2016 by the Central Government. It ensures following of fair practices in the real estate market by mandating developers to register their projects under RERA and regularly update the completion status. Therefore before buying residential property, consider checking its authenticity from the RERA Karnataka official website. 

Stamp Duty in Shimoga

The stamp duty charges applicable to different aspects of residential real estate investments are given below:

Registration Charges in Shimoga

Registration charges as per state rules, applicable to males, females, and joint investors are mentioned below:

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

Shimoga is ranked 3^rd in Karnataka and 12^th in India among the best-performing smart cities. There are more than 100 development projects initiated under the smart cities initiative in this area, a majority of which is completed as of 2023.

Under the smart city mission, the Shimoga administration has completed several smart roads and other infrastructure products. A few other important development projects include waste management, cleaning drive, water supply, and management, etc. They have developed approximately 100 road projects and more than 10 parks and other such developments. Therefore, you can expect to get a good living experience in this city and also earn significant passive income through rent and other means. Several residential projects are also in the pipeline, which you can check on the official Government and RERA websites.

Residential Real Estate vs Other Asset Classes

Several asset classes like shares, commercial real estate, etc., are also popular investment options to grow your capital to sustain financial goals. For a better understanding, a few assets given below are compared to residential real estate, based on the advantages and risks associated with each asset class.

• Residential Real Estate vs Gold

Gold is a commodity which can serve as a viable investment vehicle both for the long and short term. However, in comparison to the former, residential real estate is only suitable for long term investment tenures. 

But, the value of gold tends to suffer from frequent fluctuations, which is not the case for residential property. Being long term investment assets, they are less prone to volatility.   

• Residential Real Estate vs Stocks & Mutual Funds

Stocks and mutual funds are market assets that offer significant returns but at high risks to investors. In comparison, residential real estate offers moderate returns at moderate risks. In addition, as stocks are affected by market behaviour, these investments are very volatile. However, shares and funds offer diversification to your portfolio, whereas residential real estate provides the opportunity for additional income through rental yield.

• Residential Real Estate vs Commercial Real estate

All real estate investments are long-term and offer moderate to high returns at medium risks. However, residential real estate offers comparatively moderate returns at lower risk than commercial real estate. On the other hand, the opportunity for passive income is higher for commercial real estate.

• Residential Real Estate vs Bonds

Bonds offer moderate returns at medium risks at fixed interest rates to investors. Residential real estate on the other hand offers moderately high returns in comparison to the former at moderate risks. As an investor, you can put your excess capital in bonds for a temporary period to earn returns at fixed rates. To find the best-rated bonds explore our homepage.

A detailed comparison between residential real estate and the other asset mentioned above based on returns, liquidity, risk, volatility, and ticket size is given below.

Steps to Invest in Residential Real Estate in Shimoga

To buy residential real estate in Shimoga, you can follow the steps given below:

Step 1: Do research and understand the trends in real estate market. 

Step 2: Find a broker who can help you to buy the best available property. Brokers with good experience have a vast network and sources in the local market.

Step 3: Fix a budget keeping in mind your financial limits.

Step 4: Find a few properties based on your real estate requirements.

Step 5: Visit the properties and check all the available amenities.

Step 6: Select a property after you check all the shortlisted sites.

Step 7: Check whether it is RERA approved.

Step 8: Make payments to your developer and broker.

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

Step 10: Get insurance to protect your asset.

Final Word

Shimoga is an ideal choice to buy a residential property in Karnataka as you already know from the list of details provided above. If you want to enjoy the benefits of high return in the future, invest in a residential property in Shimoga right away.

Frequently Asked Questions

1. What is Shimoga famous for?

Shimoga is most popular for its beautiful tourist destinations. However, it is also known for handicrafts, sandalwood, rosewood carvings, and several other such products.

2. What languages are spoken in Shimoga?

The majority population of Shimoga communicates in Kannada, followed by Urdu, Tamil, Telegu, Marathi, Lambadi, and Konkani. In addition, they also speak English, Hindi, and a few other Indian languages.

3. Is Shimoga a Tier-2 city?

Yes, Shimoga is considered a Tier-II city in the state of Karnataka. Usually, cities with a population between 2-8 lakhs are considered Tier II.

4. What is the nickname of Shimoga?

Shimoga is also known as the “Gateway to Malnad.” It is because a major part of this city is located in that region.