Guide for Mulugu Residential Real Estate Investment

Mulugu is a small town in the Mulugu district of Telangana. The split of the Jayashankar Bhupalpally district resulted in its formation in 2019. With a population of 2,94,671 as of the 2011 census, this area is known for having beautiful lakes and temples as tourist destinations.

The connectivity of Mulugu with the rest of Telangana makes it a great residential area. The transportation and conveyance in this area are highly efficient. Various roads connect it with the rest of Hyderabad while connecting it with other states. It is a developing area for residential properties, with various new projects coming up. 

Read along to get a complete overview of the residential real estate properties and investment opportunities in Mulugu.

Top Reasons to Invest in Residential Real Estate in Mulugu

Here are a few reasons to discuss reasons for investing in residential real estate properties in Mulugu.

• Commercial Hub 

Hyderabad is evolving as a major commercial hub, offering a diverse job market. Besides IT, the state is also working on other areas like manufacturing, engineering, finance, pharma and hospitality. As Mulugu has great connectivity across the state, it can serve as a good residential area with a close connection to commercial points and offices for easier access to employment. 

• Transport & Connectivity 

Mulugu is known for its transport and connectivity. Roads like National Highway 163 help to connect across various states of India, like Delhi and Chhattisgarh. Its main source of transport is the bus stand of TSRTC, which has a 40-bus capacity and follows the route of Warangal-Bhadrachalam. Apart from that, rickshaws and Commander Jeeps are also popular means of transportation in Mulugu. 

• Affordability 

As a metropolitan city, Hyderabad offers an affordable and budget-friendly lifestyle. As a result, you can find affordable residential properties in areas like Mulugu. With a GDP growth rate of 8%, the city is focusing on real estate development. There are also various lucrative benefits of property taxes here. A basic 1 BHK residential property starts from ₹ 10.5 lakh, which is comparatively lower than in other areas. 

Investment Opportunities in Residential Real Estate in Mulugu

While investing in residential properties, people often wonder about finding the right investment opportunities. In Mulugu, you can find various residential societies that offer properties at an affordable range with good amenities. Here are a few options. 

Medak 

This area has a bunch of residential societies, making it a perfect area for residence. It has clean neighbourhoods, and easy access to hospitals, schools, colleges, and fast food centres. A basic 1BHK apartment starts from ₹ 10 lakhs in this area, which is quite affordable for most people. 

Warangal

This is another area near Mulugu with good residential property options. It is closely related to Birla Open Minds School, Greenwood High School, Padmavathi Degree College, SRM Junior College, Warangal Hospitals Diagnostic & Research Centre, etc. The basic price of a 1BHK apartment is about ₹ 17 lakhs. It also has good rail and bus connectivity. 

Things to Consider Before Investing in a Residential Property in Mulugu

Here are a few factors you must consider before purchasing a residential property in Mulugu. 

• Construction Quality

As a developing city, you will find numerous apartment societies around Mulugu. However, if they are offering extremely low prices, it might mean that the construction quality is not up to the mark. This jeopardises the safety of residing in such buildings. Try to inspect the quality of construction by consulting with experts, or generating reviews before investing in a property.

• Local Amenities 

Make sure that the property you are purchasing has good connectivity to schools, colleges, hospitals, shopping malls and police stations. If it is located in an extremely remote area, it will be a challenge to find regular amenities, which can further add to the difficulty of living in this area. 

• RERA Authentication 

The Indian Government came up with the Real Estate Regulatory Authority Act 2016 to ensure fair and transparent transactions while buying and selling real estate properties. Every broker and property should be registered under RERA to prove authenticity. Make sure that the property you choose in this area is registered under RERA Telangana. 

Stamp Duty in Mulugu

The state government levies a stamp duty tax on the transfer of properties. If you are about to purchase a residential property in Mulugu, you should be aware of the stamp duty charges in Telangana. The stamp duty charges on property registration in Telangana are as follows.

When it comes to the partition of gift, property, and settlement, the stamp duty has different rates. It is listed below. 

The stamp duty of Telangana in terms of power of attorney is as follows. 

Registration Charges in Mulugu

The registration charges of Mulugu should also be known for making an informed decision in purchasing a residential property. Here is the charge for property registration in Telangana.

When it comes to gifting or settlement or properties, the registration charges will be as follows. 

Finally, here are the registration charges on power of attorney. 

Mulugu Residential Real Estate Sector-What’s the Forecast?

According to research, the affordability index of residential real estate in Hyderabad has reduced to 31% in 2021, compared to its initial index of 53% in 2010. This shows the reasons for the increasing demand for real estate in Telangana, within regions like Mulugu. There are nearly 9,482 upcoming residential projects across Telenaga, some of which are EAPL Sri Tirumala Millennium, Om Sree Heights and G Square Olympia.

As Hyderabad is getting more affordable for residents, Mulugu is likely to develop better investments in its real estate sector. Despite a 9% decline in the real estate sector of Hyderabad following the COVID-19 crisis, its chances of growth are insane. More people will like to settle in Mulugu as Telengana is now the IT hub of Hyderabad. 

Residential Real Estate Vs. Other Asset Classes

If you are planning to purchase residential real estate properties, you might be interested to learn how it is better than other asset classes. Here are some areas of comparison to help you out. 

• Residential Real Estate vs. Commercial Real Estate 

Commercial properties, as the name suggests, are designed to serve commercial purposes. These usually generate higher returns, as individuals or organisations renting properties for business pay higher rents. However, finding tenants is comparatively easier in residential properties than in commercial ones. 

• Residential Real Estate vs. Stocks

Investment in stocks and mutual funds has been popular over the years. These generate good returns and additional dividends. Unlike residential properties, you can easily liquidate these. However, they are volatile and easily affected by fluctuations in economic conditions. Thus, the risks of returns are higher in stocks than in real estate properties.

• Residential Real Estate vs. Gold

Gold prices are increasing rapidly in India, which increases its value for investment possibilities. Moreover, these can be liquidated easily. However, the returns on gold can never match up to the high returns on residential real estate properties. 

• Residential Real Estate vs. Bonds

Bonds are also a good option for investment. As these offer lower returns, the level of risks is also low. Bonds hardly become volatile in a fluctuating market, which helps to maintain a fixed return. However, the returns are much higher when you invest in residential real estate properties. 

You can check out our website for good options if you are planning to invest in high-rated bonds. 

Steps to Invest in Residential Real Estate in Mulugu

Step 1: Plan the kind of real estate property you wish to purchase. Fix a budget for this.

Step 2: Conduct market research, and shortlist some properties. Visit the sites and analyse them closely. 

Step 3: Compare them based on the amenities and price. Consult professional brokers on reviews of each property. 

Step 4: Make your final choice for the property selection. Check the RERA website and confirm if it is registered under RERA.

Step 5: Contact a lawyer and complete legal activities like paying stamp duty and registration charges. Assess and collect all the legal documents. 

Step 6: Get insurance for your newly-purchased real estate property to secure its future. 

Final Word

Hopefully, that gives you an idea of the investment opportunities in the real estate sector of Mulugu, Telangana. As a metropolitan city, Hyderabad has been growing rapidly in various sectors, which makes it a great residential area. With clean neighbourhoods and transport infrastructure, a residential real estate property in this area can be highly profitable. 

Frequently Asked Questions