Guide for Residential Real Estate Investment in Aizawl

With a thriving and expansive population, Aizawl is not only the capital city of Mizoram but also its largest. As a result, this locality remains the linchpin of the entire state’s governmental operations. Employment opportunities in the government services and banking sector had played a crucial role in the sustainable development of Aizawl’s socioeconomic standing. 

Moreover, due to its scenic tourist attractions, the place is also a major centre of hospitality services. This place has also recorded rapid technological growth in recent years due to the Smart Cities Mission. All of these factors played into this rising interest in the real estate sector of Aizawl. So, if you are considering investing in residential property, this city can be an ideal area for you. 

Why Invest in Residential Real Estate Sector in Aizawl? 

You can consider investing in residential properties in Aizawl for a multitude of reasons. Some of these prospects have been discussed below. 

• A Comfortable Environment for Residents 

Referred to often as ‘Home of the Highlanders’, Aizawl is known for its soothing and serene environment. This hilly topography of this locality makes sure that the weather conditions of this city remain pleasing throughout the year. Additionally, one does not have any obstacles to the facilities necessary for household chores. Therefore, the city has become a significantly lucrative option for real estate developers.

• Reliable Transportation Services 

The Lengpui Airport near Aizawl is the primary source of aerial connection between the city and its neighbours. Through this airstrip, this locality is linked to some of the other paramount landmarks of the country. Moreover, there is also a helicopter service available in Aizawl, allowing transport to several other cities of Mizoram without any difficulty.

Moreover, the bus routes here have also succeeded in providing increased interconnectivity in this city. Interestingly, an inter-state bus service called ‘Unity’ has also been inaugurated in Mizoram. Operating from Aizawl to Behliangchhip, this facility allows individuals to travel to Tripura with ease. 

Furthermore, Aizawl is also linked to several other districts of India through the three national highways that pass through this city. Therefore, travelling with private or personal vehicles is exponentially effortless here. 

• Various Industrial Opportunities 

A vivid and multidimensional industrial field has also contributed majorly to the flourishing interest in Aizawl’s residential real estate sector. Whereas the primary commercial activity of Aizawl is centred around steel fabrication, the locality is also renowned for its apparel businesses and wooden furniture production. Moreover, locally produced crafty materials here have earned a nationwide reputation. 

Places in Aizawl Where You Can Invest in Residential Real Estate 

As an investor, you can consider these places in Aizawl compatible with your long-term financial objectives:

• Dartlang

The fascinating scenic beauty here is unquestionably one of the key contributors to the overall urban housing development procedure underway in Dartlang. Moreover, the locality has been one of the touchstone places for the healthcare sector of the state of Mizoram itself. For instance, this locality is the home of the largest private hospital in the entire state, the Synod Hospital. 

• Rangvamual 

Rangvamual is especially known for its friendly neighbourhood localities, so families are likely to feel more comfortable when moving to this area. Aizawl’s national highway goes through this place, and one can reach the airport within a minimal amount of time. Therefore transit-related problems are largely uncommon here. Moreover, the locality is known for regular police patrols. Therefore, residents here can rest assured about their safety concerns. 

Things to Consider Before Investing in a Property in Aizawl 

There are some crucial matters that you must keep in consideration when making a plan to invest in Aizawl’s residential real estate sector. These include:

• Additional Costs of Purchasing a House

Apart from the value of the property itself, you will need to bear the costs of several other expenditures during and after the ownership transfer procedure. These may include an advance maintenance charge submission to the real estate developer, parking fees for your vehicle, and the centralised Goods and Services Tax [GST]. Including these aspects in your primary calculations regarding a financial estimation can make sure you do not go over budget during a property purchase.  

• Quality of Construction of the Property

On-site research of the property is essential from your end to ensure the builder or developer is using adequate materials and following proper protocols. Otherwise, any compromises made in this regard can hurt the standard of the building in the long run. Therefore, market experts suggest that doing background research on the reputability of housing developers can be a helpful practice in this scenario. 

• Checking the RERA Authentication of the Property 

As of 2016, the Real Estate (Regulation and Development) Act had become effective in India by the Parliament of this country. The act takes into consideration the protection of the interests of home purchasers and encourages new investments in the real estate field.

As part of this regulatory directive, every residential and commercial property has to be registered under the Real Estate Regulatory Authority [RERA] of a respective state. So, after you have finalised the property that you want to purchase, it is a must to verify all its details on the official RERA website of Mizoram. 

Stamp Duty and Registration Fees Payable for Residential Properties in Aizawl 

The stamp duty is decided by the state governments of India. Therefore, for the residential properties in Aizawl, the duty payable per the rules and regulations of the Mizoram government had been discussed below. 

On the other hand, as a land buyer, you will need to pay a 1% registration fee as per the value of the property you are purchasing. However, the higher ceiling for this charge has been legally limited to ₹5000.

What Is the Forecast on the Residential Sector in Aizawl?

Aizawl is likely to continue its rapid socioeconomic growth in the coming days. Under the Smart Cities Mission initiative, the concerned authorities are committed to improving the standard of living here by reducing pollution and improving e-governance measures. 

The city is also taking notable steps in reducing over dependence on traditional energy sources. Moreover, significant works are underway regarding improving the water supply here. The authorities have also started preparations regarding modernising the trade facilities here and establishing a digital library. 

Aizawl is also planning on developing a mass housing complex project, the initiation for which was done in the middle of 2022. Moreover, in the vein of its ‘Unity’ bus route, the Mizoram government had also shown interest in starting similar inter-state travelling options to Manipur, and even cross-border ones to Myanmar. 

All of these prospects, as a whole, had played into the growing appeal of Aizawl to the real estate developer organisations of India. So, if you are considering an investment in this sector, it can be beneficial in the long run. 

A Comparison Among Residential Real Estate and Other Asset Classes 

In the globalised free market economy, there are several alternatives where you can invest for a profitable return down the line. Therefore, it can be beneficial to compare the basic prospects of a residential real estate investment and other different assets. 

• Residential Real Estate vs. Gold 

Opting for a residential real estate investment can be comparatively beneficial over doing the same with gold. For instance, an investment in residential property tends to provide higher returns in the long run – despite the higher liquidity of this precious metal. Moreover, as rental yield in India tends to be around 7 to 9%, it can be a stable source of monthly residual income. 

When you are investing in a property, it is helpful to take into consideration that the value of your real estate asset can also get positively affected by the changing nature of the market. Therefore, your residential property’s price will be increasing if the market also improves. 

Notably, investing in gold can be effective during an economic downturn, as it has historically been able to beat the effects of inflation. However, gold’s value appreciation can be directly related to the paper currency’s devaluation. Therefore, gold investment can potentially end up fetching minimal profits. 

• Residential Real Estate vs. Commercial Real Estate 

Market experts have observed investing in real estate to be an ideal way of your portfolio diversification. This way, if one certain class of assets begins to underperform, it will not drastically affect your entire portfolio.

However, there are some crucial differences between investing in residential and commercial real estate. For once, commercial property requires a hefty payment in the initial stage of investment – which can present severe challenges in maintaining adequate financial discipline. 

On the other hand, residential properties tend to have lower rental or lease terms than their commercial counterparts. That is why, as an investor, you will need to spend a comparatively lesser amount to cater to the basic infrastructural and utilitarian needs of a residential property. 

It must be noted that commercial properties can indeed fetch a higher return on investment. However, an economic downturn in the market can also effectively reduce the rental value of such real estate. As a result, such an investment can become comparatively riskier. Alternatively, a fiscal slowdown does not lead to a decrease in a residential property’s rental value. 

Residential real estate investment can also be pivotal for your ability to claim tax benefits. To elaborate, as per the rules and regulations of India’s Income Tax Act, you can claim certain exemptions against investing in residential property. However, no such exemptions are applicable for investment in commercial real estate sector. 

• Residential Real Estate vs. Stocks and Mutual Funds

When making an investment decision, you have to consider the risk tolerance capacity of your profile. Therefore, if you are a risk-averse investor, residential real estate can be an ideal alternative for you.

To elaborate, trading in stock market or investing in mutual funds comes with an inherent risk due to the volatile nature of this field. Moreover, depending on the performance of a company whose stock you have purchased, the return can vary significantly. Similarly, as a mutual fund holds stocks, equities, and other money market instruments, a profitable return cannot be guaranteed. 

With real estate, on the contrary, returns are predictable and a stable source of income generation. In general, a fixed amount is paid out by the tenants of your property over a pre-decided tenor as basic rent. Moreover, you can also register a substantial profit by reselling the property down the line. 

• Residential Real Estate vs. Bonds

Both the asset classes of residential real estate and bonds have proven to be profitable sources of passive income for an investor. Much like a residential property, bonds also need a lower initial investment amount. Therefore, the ROI tends to be comparatively higher.

Moreover, if you do not sell a bond till the end of the maturation period, you are guaranteed to receive your capital amount back. Therefore, you can rest assured about your capital protection while entering the investment market. So, if you are also considering investing in bonds alongside residential real estate, you can register for the same on our website. As we are committed towards complete transparency, you do not have to worry about additional charges or hidden fees while investing. 

A brief overview of the different aspects of these diverse asset classes had been given below:

If you are planning to invest in low-risk options and bonds for stable returns, then you may explore the top-rated bonds displayed on our homepage. Complete the registration now to start investing.

Steps to Invest in Aizawl Residential Real Estate 

The basic steps that you must follow in this regard had been discussed below:

STEP 1: Make a proper fiscal estimate keeping all the charges in mind.

STEP 2: Decide on the potential properties that you may be interested to invest in.

STEP 3: Visit these properties and conduct developer reputation assessment via direct and digital means available.  

STEP 4: Consult your trusted real estate expert about the output capacity of this property in the long run.

STEP 5: Finalise the site where you will be investing.

STEP 6: Verify the RERA authentication of the real estate plot. 

STEP 7: Ensure all the data records and documentation produced are genuine. 

STEP 8: Conduct all the necessary monetary transactions to gain legal ownership of the property. 

STEP 9: Get insurance cover for the house. 

Final Word

The residential real estate sector in Aizawl is thriving due to widespread development in the city’s infrastructural, industrial, and transportation developments. The city’s locality is known for its vibrant tradition, with festivals such as Chapchar Kut, Pawl Kut, and Mim Kut being a cornerstone of Aizawl’s culture. 

Furthermore, because of the Smart Cities Mission government initiative, Aizawl was selected as one of the 100 cities in India which would be provided with adequate resources to establish a template for the country’s all-inclusive development as a whole. Therefore, if you are considering investing in residential properties, this place can be ideal for you. 

Frequently Asked Questions