Guide for Tirunelveli Residential Real Estate Investment

Also known as Nellai, Tirunelveli is a major city in Tamil Nadu. Due to the concentration of educational institutions, one of Tirunelveli’s localities, Palayamkottai, is referred to as the Oxford of South India. This city has around 25 engineering colleges, making it an ideal destination for students. 

Tirunelveli is well-connected by roads and rail with the rest of the state and India. It is a strategic point connecting the eastern and western parts of the peninsula and is a trading centre. It also has a railway station, and its nearest airport is Tuticorin Airport.

Tirunelveli is also among the top 0.5% of the most inexpensive cities in the entire world. This city’s low cost of living is a major draw for purchasing real estate here. 

Let us understand why investing in residential real estate in Tirunelveli might be profitable.

Top Reasons to Invest in Tirunelveli’s Residential Real Estate

The following are some reasons why you would want to invest in residential real estate in Tirunelveli:

Well Connected

Tirunelveli comes with an extensive transport network. Due to the Smart City Mission, there have been massive developments. Tirunelveli is on NH-44 and has one of the oldest railway stations in the country.  Tuticorin airport is around 22 km east of Tirunelveli and has regular flights to Bangalore and Chennai.

Safe Localities

This locality has all the facilities that make a good residential locality, like public and private schools, banks, hospitals, pharmacies, markets, public parks, theatres and more. The neighbourhoods are safe enough that anyone can go out at night. The streets are almost free from any traffic jams.

Residential Real Estate Investment Opportunities in Tirunelveli

Here are a few locations which are apt for residential real estate investment in Tirunelveli:

Palayamkottai

It is one of the most prominent and largest neighbourhoods in Tirunelveli. Palayamkottai has several schools, colleges, hospitals, banks and shopping malls. It makes it one of Tirunelveli’s best locations to invest in residential real estate. 

Average rates of residential properties in Palayamkottai start from ₹3,181 per square foot. 

KTC Nagar

This famous locality is rated 4.9 out of 5 in terms of liveability. It is rated on cleanliness and social connectivity parameters. KTC Nagar is known for its colleges, transportation facilities, government health centres, hotels, theatres and much more. 

The average rates of residential properties in KTC Nagar is ₹2,583 per square foot.

Read Also: Guide for Madurai Residential Real Estate Investment

Things to Consider before Buying a Residential Property in Tirunelveli

Given are some of the things that you will want to keep in mind before purchasing a residential property in Tirunelveli:

RERA Authentication

Before opting for a property, it is essential to check whether or not it is RERA registered. It is necessary so that you avoid falling into any legal complications later. Therefore, when looking for properties in Tirunelveli, you should check the project’s and builder’s registration on the Tamil Nadu RERA portal.

The Real Estate Regulatory Authority (RERA) is a body that was formed after the enactment of the Real Estate (Regulation and Development) Act of 2016  to look into the accountability and transparency of India’s real estate sector.

Locality

It would help if  you opted for a property in a prime location. It will offer you better returns on investment than opting for a property on the outskirts of a city. A good location is one with schools, colleges, hospitals, markets, banks etc., in the vicinity.

Stamp Duty in Tirunelveli

Stamp duty is a tax which is levied on property purchases. Here are the rates of stamp duty applicable to property purchases in Tirunelveli:

Registration Charges in Tirunelveli

Registration charge is an essential cost that accompanies when you purchase new property. Rates of registration charges applicable to the people of Tirunelveli are:

Tirunelveli’s Residential Real Estate Outlook

Tirunelveli is a popular tourist destination with many historical sites and natural beauty. Besides tourists, the inexpensive cost of living in this city attracts many people. It also has  several industries and educational institutions that drive demand for real estate here. 

The average price of properties in Tirunelveli is ₹3,422 per square foot. Most of the properties in Tirunelveli are showing an upward price trend, while none are witnessing a downward trend. As per the price trends, it is profitable to both buy and sell properties at the moment.

Around 10,000 rupees per square foot is the typical pricing for the priciest houses in Tirunelveli. People who are looking for a calm and quiet life may opt to buy or build their dream house in this city. Many popular residential areas are present in Tirunelveli, which drives its real estate sector.

Residential Real Estate vs Other Asset Classes

Here is a comparison between residential real estate versus other assets and the returns they offer:

Residential Real Estate vs Gold

Real estate offers the chance to earn passive income every month, which is different when you invest in gold. However, gold is more risky and volatile in comparison to real estate.

Residential Real Estate vs Bonds

Real estate offers better inflation-beating returns in comparison to bonds. However, bonds are comparatively more secure than real estate investments. 

Do you want to invest in secure assets and earn a fixed income between 9 to 11%? Then, register here and start investing.

Residential Real Estate vs Stocks & Equity Mutual Funds

Stocks and equity mutual funds earn better returns in comparison to real estate. However, consistency is better in the case of real estate due to their market volatility. Moreover, residential real estate offers more tax benefits than equity mutual funds. 

Residential Real Estate vs Commercial Real Estate

Residential real estate offers better tax benefits than commercial real estate if you take a home loan on the property. Tenants are easier to find in the case of residential real estate in comparison to commercial real estate.

Discover More: Guide for Tirunelveli Commercial Real Estate Investment

Following is the comparison between different assets on the basis of returns, liquidity, risk, volatility and ticket size:

Steps to Invest in Residential Real Estate in Tirunelveli

Here are the steps that need to be followed if you wish to start investing in residential real estate in Tirunelveli:

Step 1: Come up with a list of locations with good prospects.

Step 2: Set up a budget and stick to it.

Step 3: With a broker, visit each location to check them in detail.

Step 4: Examine their legal documents and confirm whether or not all these properties are RERA registered.

Step 5: Finalise a property and get in touch with a lawyer to complete all the legal formalities.

Step 6: Pay the stamp duty and registration charge.

Step 7: Pay for the services taken from both broker and lawyer and opt for an insurance policy to protect your property from future damages.

Read More: Guide for Agra Residential Real Estate Investment

Final Thoughts 

You should be aware of the potential hazards before choosing to invest in residential real estate in Tirunelveli. Check the official website of RERA Tamil Nadu to check the authenticity of both the builder and the property. Opting for an insurance policy is another wise decision if you wish to safeguard you financially from future damage to your property.

Frequently Asked Questions (FAQs)