Residential Real Estate Investment in Secunderabad￼
Secunderabad is among the six zones of the Greater Hyderabad Municipal Corporation of the state of Telangana. Apart from being an industrial hub, this city is the headquarters of the South-Central Railway Zone. The history and culture of Secunderabad is prominent since the era of British rule and have experienced development constantly.
Apart from job opportunities, the entrepreneurial and education market of this city also offers great scope for people to relocate. So, for individuals looking for investing in the residential real estate sector, this context helps in offering them a clear idea.
Top Reasons to Invest in Residential Real Estate in Secunderabad
Some of the major reasons to invest in this residential real estate market in Secunderabad are as follows:
- Growing Development in Different Sectors
With the growing development and Government initiatives in different sectors, Secunderabad is ought to see an immensely positive change in the economy. In addition, with the availability of superlative infrastructure, manpower, power and other types of resources, this residential real estate sector will be experiencing tremendous growth in the upcoming years.
- Industrial Hub
Secunderabad serves as a major hub in the railway and information technology sectors. There are significant industrial areas like Ghatkesar, Uppal, Bolarum, etc. where giant conglomerates are being established. This increases the chances of employment and other development which directly impacts the prospects of a particular place.
Investment Opportunities in Residential Real Estate in Secunderabad
Here are some of the lucrative locations that one can assess if looking for residential real estate properties in Secunderabad:
Malkajgiri shares well-connected roads to significant parts of this city. This makes people residing at this place offer stellar opportunities for builders to develop residential properties. In addition, one can find lucrative investment options in the residential real estate plots in Malkagiri.
The average land prices in Malkajgiri ranges from ₹5450 to ₹9950 per sq. ft.
Apart from the growing development in different parts of Lalapet, the demographics and transport connectivity of this place makes business and life easy. Also, many premium and luxurious residential projects are being built serving as excellent investment opportunities.
The average land prices in Lalapet ranges from ₹3500 to ₹12,500 per sq. ft.
Things to Consider Before Investing in a Residential Property in Secunderabad
The following are the factors to consider before investing in a residential real estate property in Secunderabad:
The reputation and quality of the locality play an important factor in determining the value of the property. Moreover, the availability of the amenities in the locality like a shopping mall, amusement parks, and supermarkets will positively increase the value of the property; hence increasing the rent value as well.
- RERA Authentication
Real Estate Regularity Authority (RERA) is governed by the provisions laid in the Real Estate Regularity Authority Act, 2016. This body works uniquely in every state and Union Territory (UT) in India and is concerned with all the activities related to the real estate business.
As per this governing body, every builder and real estate agent must have their properties that are for sale listing registered under the RERA portal of Telangana’s official website. From this website, you can check for the authenticity of the shortlisted residential properties that you have chosen for investment.
Before investing in residential real estate properties, one must consider their budget and financial condition prior hand. This will allow better analysis and evaluation of where you will stand after making a large investment. Moreover, as funding in the real estate sector is a long-term investment, one needs to be patient with the result on return.
Stamp Duty in Secunderabad
The current stamp duty charges in Secunderabad are provided in a tabular form:
|Property Owners||Stamp Duty Rate|
|Men||4% of premise value|
|Women||4% of premise value|
|Joint (Men + Women)||4% of premise value|
Stamp duty rates as per area type are explained in a tabular form
|Area Type||Stamp Duty Rate|
|Municipalities and Corporation||4% of premise value|
|Other Area Types||4% of premise value|
Stamp duty rates as per different property deeds are as follows:
|Type of Deed||Stamp Duty Rate|
|Sale Agreement Including Possession||5.50% of premise value|
|Sale Agreement Not Including Agreement||0.50% (non-adjustable)|
|Sale Deed of Gram Panchayat||5.50% of premise value|
|Sale Deed of Other Areas||5.50% of premise value|
|Sale Agreement / GPA||6.50%, 5.50% (adjustable)|
|Sale Certificate||5% of the premise value|
|Conveyance||5% of the premise value|
|Construction/Development Agreement||0.50% (non-adjustable)|
|Construction/Development Agreement or GPA||1% (non-adjustable)|
Registration Charges in Secunderabad
The registration charges in Secunderabad are provided in a tabular form:
|Property Owners||Registration Charge|
|Men||0.5% of total premise value|
|Women||0.5% of total premise value|
|Joint (Men + Women)||0.5% of total premise value|
The registration charges in Secunderabad as per area type are given in a tabular form:
|Area Type||Registration Charge|
|Municipalities and Corporation||0.5% of total premise value|
|Other Area Types||0.5% of total premise value|
The registration charges as per different property deeds are as follows:
|Type of Deed||Registration Charges|
|Sale Agreement Including Possession||0.5% (min ₹1,000 and max ₹20,000)|
|Sale Agreement Not Including Agreement||0.5% (min ₹1,000 and max ₹20,000)|
|Sale Deed of Gram Panchayat||2.00%|
|Sale Deed of Other Areas||0.50%|
|Sale Agreement / GPA||₹2,000|
|Construction/Development Agreement||0.5% (min ₹1,000 and max ₹20,000)|
|Construction/Development Agreement or GPA||0.5% (max ₹20,000)|
Secunderabad Residential Real Estate Sector- What’s the Forecast?
The economy of Secunderabad is expected to flourish in the upcoming years in various important sectors. The residential real estate sector will sure to experience a positive kick of growth in 2023 as per the prospects. Moreover, there will be many future opportunities in terms of employment in different parts of the city making it ideal for residential real estate investment.
Residential Real Estate vs Other Asset Classes
Some of the significant differences between residential real estate and other asset classes are as follows:
- Residential Real Estate vs Commercial Real Estate
Though one can generate a higher rate of return on investment from the commercial real estate market, however; entering this market will cost more. Moreover, investing in the residential real estate market will allow one to achieve tax benefits that are not applicable in the case of commercial real estate.
- Residential Real Estate vs Stocks and Mutual Funds
Investing in stocks and mutual funds involves risky results because of excessive fluctuations in the market. However, investment in residential real estate offers more security as compared to funding in the share market. In addition, investing in residential real estate offers a more stable return because of the appreciating nature of the properties.
- Residential Real Estate vs Gold
Gold can be easily sold and bought as per convenience; however, if you want to make a long-term investment and get higher ROI, investing in residential real estate is the ideal option. With the availability of a more stable market, funding your money in residential properties will generate more profit on investment.
- Residential Real Estate vs Bonds
Funding money in both residential real estate and bonds offers a stable and high volume of return. However, given the condition of inflation and the appreciation rate of properties, investing in the real estate market will undoubtedly gain a high return on investment. Like residential real estate, bonds are also a safer and more predictable instrument of investment.
The table given below compares the above asset classes based on their risks, volatility, liquidity, and ticket price.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
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Steps to Invest in Residential Real Estate in Secunderabad
The following is the step-by-step procedure to invest in the residential real estate market:
Step 1: Finalise your budget and plan your future financial parameters upon investing in residential real estate accordingly.
Step 2: Select a few locations that meet your preference and budget.
Step 3: Conduct on-site research and visit all those locations to understand the prospects of these shortlisted locations. In addition, if it is necessary, take help from real estate agents to derive in-depth details about the location.
Step 4: Make a finalisation of the location or property and check the RERA authentication of the same.
Step 5: Now, complete all the payment like stamp duty and registration charges that is required to transfer the ownership of this property. Moreover, if you have hired the service of a real estate consultation, then complete his or her charges as well.
Step 6: The process of investing in residential real estate can be completed once you get insurance for the newly purchased property.
Being a twin city of Hyderabad and one of the giant industrial hubs, Secunderabad offers huge prospects for people in the field of real estate, information technology, and manufacturing. Hence, if you are looking to invest in some residential real estate properties in Secunderabad, this context helps in offering a clear guide on this perspective.
Frequently Asked Questions
What are the benefits of investing in residential real estate in India?
Some of the significant benefits of investing in residential real estate in India are generating a higher rate of return, earning from the appreciation value of the properties even in times of inflation, and getting opportunities to save taxes.
What are the important hospitals present in Secunderabad?
There are major hospitals in Secunderabad with the best infrastructure like KIMS (Krishna Institute of Medical Sciences), Yashoda Hospitals, Apollo Hospitals, Medicover Hospitals, and Sunshine Hospitals.
What is the top educational institute in Secunderabad?
Secunderabad has some of the best research institutes which include the National Institute of Nutrition, Center for Cellular and Molecular Biology, Indian Institute of Chemical Technology, and National Geophysical Research Institute.
What are the documents required for property registration in Secunderabad?
The primary documents necessary for property registration in the state of Telangana are original documents including the signatures of all the parties, address proofs, eSTAMPS, photographs showing the front view of the property, etc.