Residential Real Estate Investment in Shivaji Nagar

11 min read • Updated 11 May 2023
Written by Anshul Gupta

Shivaji Nagar is a prominent sub-urban area in Pune. It is one of the greenest and most posh residential localities of Pune. It borders the Mula Mutha River and hosts many residential and commercial projects. This area is also home to significant IT companies, and business and corporate parks.  As a part of a tier 1 city, Shivaji Nagar offers many residential properties and is particularly known for its posh residential areas.

Shivaji Nagar also hosts excellent schools and universities that attract scholars and employees from all around India. This results in a growing demand for residential properties. To meet this demand, several investors across the globe are investing in residential real estate here.

This blog will take you through the benefits of investing in residential properties in Shivaji Nagar. 

Top Reasons to Invest In Shivaji Nagar Real Estate

Here are some reasons that will help you make an informed decision on purchasing residential real estate in Shivaji Nagar.

  • Education Hub

As a popular residential area on the outskirts of Pune, there are several major educational institutions surrounding Shivaji Nagar. This suburb hosts various heritage colleges and universities that attract scholars from other parts of Maharashtra and India. Fergusson College, Savitribai Phule Pune University, Brihan Maharashtra College of Commerce and Symbiosis College are a few reputable universities here.

The presence of these significant universities and colleges introduces the growing demand for urban living spaces for students from neighbouring cities or states. Therefore, residential properties like paying guests, flats, and other co-living spaces are popular choices for investments in Shivaji Nagar.

  • Easy Access to Transportation

The Mumbai-Pune Old National Highway emerges from this suburban area. Consequently, residents of Shivaji Nagar can easily access the major cities of Mumbai and Pune via public and private transport. 

There are multiple bus stops in Shivaji Nagar from where one can board Mahanagar Parivahan Mahamandal Limited buses to any important city in Maharashtra. Shivaji Nagar Railway station is the local railway station. As trains from Pune to Lonavala make a halt at Shivaji Nagar Station, transport options between these two cities are always available. 

  • Employment Hub

Apart from being a hub for schools and universities, Shivaji Nagar is also home to several IT companies and other corporations. These companies attract people from other cities and states who seek affordable residence and employment here. 

Some important companies that have their offices in Shivaji Nagar are Steel Authority India Limited (SAIL), Microsoft, Capgemini, and Cognizant. By investing in residential properties in the proximity of such companies, you can earn high rental gains.

Residential Real Estate Investment Opportunities in Shivaji Nagar

Here are excellent places in Shivaji Nagar for residential real estate investments:

  • Bhosale Nagar

Bhosale Nagar is a popular residential locality near Shivaji Nagar in Pune. This region offers great transportation facilities via roadways to Shivaji Nagar. The Mumbai-Pune Highway provides residents of these suburbs with convenient transport options. Furthermore, Kjhadki Railway station is the nearest railway station to Bhosale Nagar that allows rail commutation to other parts of Maharashtra. 

As a growing suburb, Bhosale Nagar attracts reputed builders and investors to develop residential projects here. You can invest in residential properties like flats and apartments in Bhosale Nagar with an amount ranging from ₹4 crore to ₹15 crore.

  • Navi Peth

Navi Peth is a mid-segment locality and a relevant residential area near Shivaji Nagar.  Shivaji Nagar Railway Station is the nearest to Navi Peth. This area is also surrounded by major corporate hubs such as Tech Park, Pune IT Park, Weikfeild IT Citi Info Park, and Amar Synergy. Pandurang and Kothrud are the prominent industrial areas in this region.

Employees of these companies settle in Navi Peth with their families. This increases the demand for modern and affordable residential properties here. You can choose to invest in apartments and 2-3 BHK flats in Navi Peth with an amount varying from ₹60 lakh to ₹2.2 crore.

Things to Consider Before Investing in Residential Real Estate in Shivaji Nagar

Here are a few important things you need to consider before investing in residential real estate in Shivaji Nagar.

  • Amenities

Conducting on-site research on your shortlisted properties is necessary to confirm whether it provides all promised amenities. Therefore, you must check for basic amenities like adequate parking space, ventilated rooms, water supply, electric backups, and disposal systems. 

Security features like CCTV cameras and fire extinguishers are important amenities for apartments and residential complexes. Properties offering all these basic and modern features tend to attract more tenants. 

  • Locality

Safety and security are the primary requirements for people looking for residential places. Therefore, safe localities are the most popular choices for real estate investment.  If your chosen property is in a respectable neighbourhood with a low crime rate, it will attract high rental prices. To ensure safety, consider if the locality hosts a police station within its vicinity. 

Furthermore, the presence of schools, offices, shops, and other recreational establishments is also important. Having these facilities in or around the locality promises a high return on investment.

  • Builder’s Credibility

If you are planning to invest in any under-construction property, ensure to research the builder’s profile. It is important to note that a property made by a credible builder has the chance of gaining more returns on investments than ones made by mediocre ones. 

Consider studying the previous and successful projects of the builder before finalising a residential property. You can also contact investors and owners of previous projects to cross-check the information that a builder provides.

  • RERA Authentication

The Real Estate (Regulation and Development) Act, 2016 mandates the formation of a Real Estate Regularity Authority (RERA) in India. This body overlooks accountability in the real estate sector as per the guidelines set by the RERA Act. As per the Act, every builder or broker must register their properties in the RERA portal of websites of their respective states. 

Therefore, builders/developers in Shivaji Nagar need to register commercial properties in the RERA portal of Maharashtra. Before finalising a residential real estate, you can check its authenticity on the RERA website. 

Stamp Duty in Shivaji Nagar

While investing in a residential property in Shivaji Nagar, as an investor, you must pay the stamp duty charges along with the property’s price.  The table below highlights the stamp duty rate applicable to Shivaji Nagar.

CategoryStamp Duty
Male7% (5% stamp duty + 1% metro cess + 1% local body tax)
Female6% (4% stamp duty + 1% metro cess + 1% local body tax)
Male+Female 6.5%

Registration Charges in Shivaji Nagar

The registration charges that an individual must pay along with stamp duty are as follows:

CategoryStamp Duty
Male1% (for properties costing below ₹30 lakh) and ₹30,000 (for properties costing above ₹30 lakh )
Female1% (for properties below ₹30 lakh) and ₹30,000 (for properties costing above ₹30 lakh)
Male+ Female1% (for properties costing below ₹30 lakh) and ₹30,000 (for properties costing above ₹30 lakh)

Shivaji Nagar Residential Real Estate Sector: What’s the Forecast?

According to some real estate experts, Shivaji Nagar is one of the five best localities to live in Pune. This is a well-maintained and blooming suburban area witnessing significant development in commercial and residential infrastructure. 

Pune Metro Line 3 is being developed to connect Hingewadi and Shivaji Nagar. Reports say that 300 metro piers are already installed to start the construction of metro rails.  This Metro Line 3 will be integrated with Lines 1 and 2 to ensure smooth commutation. A metro car shed will be installed in Mann village to feed metro trains to Line 3. 

This metro system will improve commutation for residents of Shivaji Nagar to other parts of Pune. Unlike roadways, travelling via the metro will be less time-consuming and thus make Shivaji Nagar a popular suburb for residential real estate investors. 

Residential Real Estate vs Other Asset Classes

In the following points, you will learn the differences between residential real estate vs other asset classes such as stocks, bonds, etc.

Residential Real Estate vs Commercial Real Estate

Commercial real estate is more expensive than residential real estate. Consequently, one can earn more returns from commercial properties than residential ones. However, finding suitable tenants for commercial real estate is a tougher job. However, in terms of tax benefits, residential properties come with more tax deductions.  

Residential Real Estate vs Bonds

Residential real estate and bonds are reliable investments for passive income. However, residential real estate tends to offer higher returns than bonds. Residential real estate also offers tax benefits that are not available with bond investments. In terms of risk, residential real estate is comparatively riskier than bonds. 

If you are planning to invest in bonds and earn decent returns at low risks, explore our homepage. Here you shall find a list of top-rated bonds in the market. So, register now to start investing without paying anything extra.

Residential Real Estate vs Gold

Gold is suitable for both long and short-term investments, while one needs a long time horizon for residential real estate investment. Additionally, gold has higher market liquidity than residential properties. This is simply because buying and selling gold is easier than buying/selling residential properties.

However, in terms of returns, residential real estate has the upper hand over the gold. Also, an investor can enjoy better tax benefits by investing in residential properties than gold.

Residential Real Estate vs Stocks and Mutual Funds

Stocks and mutual funds have a more volatile market than real estate. Consequently, stocks can offer higher returns than residential properties. However, investors need to have a thorough knowledge of the stock market before investing. Without the proper knowledge, they may face huge losses on stock and mutual fund investments. 

Residential real estate on the other hand is comparatively less risky and offers decent returns. 

The table below compares asset classes based on their liquidity, volatility, risks, and ticket price.

ParametersResidential Real EstateStocks & Mutual FundsGoldCommercial Real EstateBonds
LiquidityLow High High Low Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High LowLow Low 
Ticket SizeHigh Varies LowHighVaries 

Steps to Invest in Residential Real Estate in Shivaji Nagar

The steps to invest in residential Real Estate in Shivaji Nagar can vary among sellers and investors. Here are the basic steps to follow while purchasing residential real estate in Shivaji Nagar. 

Step 1: Fix a budget to invest in residential properties in Shivaji Nagar.

Step 2: Shortlist a few locations based on your requirements.

Step 3: Visit these properties for a thorough understanding of their ground situation. Consider seeking help from real estate consultants to learn about prospects in the area.

Step 4: Finalise and then purchase a property after checking its RERA authenticity. 

Step 5: Make the necessary payments to transfer the property under your name. 

Step 6: Collect the necessary documents like the sale deed and Encumbrance Certificate.

Step 7: Pay the necessary charges like stamp duty and registration charges to transfer the property under your name. 

Step 8: Consider paying the service charges to brokers or real estate consultants (If any).

Final Words

As a posh suburban region of Pune, Shivaji Nagar brings to the table endless investment opportunities for real estate investors. Both residential and commercial real estate in Shivaji Nagar promises to offer high returns on investment.

Investors must thoroughly read the agreement before purchasing the property. This will save him/her from any fraud and unfair clauses. Also, it is advisable to purchase an insurance policy to safeguard the property from any major losses.

Frequently Asked Questions

Where are the major IT companies in Shivaji Nagar?

Pimpri-Chinchwad, Kharadi, and Hingewari are some of the popular IT companies in Sivaji Nagar. These places are only 15-16 km away from the locality. 

What are some of the important schools of Shivaji Nagar?

As a posh residential locality, Shivaji Nagar hosts many prestigious schools spread throughout the city. A few of these schools are:
Pune Police Public School
Vidya Bhavan School and Junior College
St. Francis School
Mati Mand Vidyalaya

What is a sale deed?

A sale deed is a document that holds details about the transfer of ownership and rights of a property from a seller to a buyer. Without this document, a buyer of a property cannot become its legal owner.

What is an Encumbrance Certificate?

An Encumbrance Certificate is an important document that every property buyer must check while purchasing a residential or commercial property.  This document states whether the property is free from any legal or financial liabilities.

Was this helpful?

Anshul Gupta

IIT Roorkee Alumnus and CFA with experience of structuring debt products worth more than 15000Cr for institutional and retail investors.

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