Guide for Gwalior Residential Real Estate Investment

Gwalior is one of the largest cities in Madhya Pradesh. It is a city of historical relevance with attractions like medieval forts, palaces and old temples, which attract tourists worldwide.

Furthermore, Gwalior has a literacy rate of 84.94%, which is more than the national average literacy rate. This city also houses several employment hubs and education centres that bring in people from other parts of Madhya Pradesh and neighbouring states. 

Gwalior is also known as the Gateway to Madhya Pradesh, owing to its connectivity to neighbouring states like Uttar Pradesh and Maharashtra. The city lies south of Agra and is connected via the Bombay-Agra National Highway. Delhi is located 319 km north of Gwalior and can be reached via private buses or trains.

The cost of living in Gwalior is quite affordable than to most smart cities. As a result, people working here tend to seek residence in Gwalior. Read along to learn the benefits of investing in Gwalior residential real estate.

Top Reasons to Invest in Residential Realestate in Gwalior

Here are a few good reasons for you to invest in residential real estate in Gwalior:

• Transportation and Connectivity

Gwalior offers excellent roadways transportation to and from the city and other parts of India. The North-south corridor of the Golden Quadrilateral passes through this city. In addition, the Agra-Bombay Highway and Yamuna Expressway connect Gwalior to Agra and New Delhi. Furthermore, you can travel to cities like Bhopal, Indore, Jabalpur, Jhansi, Agra, Morena Bhind and Jaipur via private buses.

The Gwalior Junction is the most traversed railway station in this city. It has also been awarded the cleanest North Central Railway Zone station. This railway station is a five-track intersection point that carries commuters to Agra, Sheopur, Etawah, Jhansi and Shivpuri. 

Furthermore, the city has extensive intra-city transport, including Gwalior City Buses, taxis, autorickshaws, etc. As a result, you can earn high ROI by investing In residential real estate in Gwalior.

• Centre of Education

Besides being a city of palaces, forts and museums, Gwalior holds several important universities for higher education. These educational institutions attract scholars from other parts of Madhya Pradesh. Gujarat Medical College, Indian Institute of Tourism and Travel Management, Rustamji Institute of Technology, and Amity University are some prominent universities in Gwalior. 

These educational institutions attract students who are likely to look for co-living accommodations and hostels near their university premises. This offers real estate investors the chance to get high ROI from rental gains from residential properties in Gwalior.

Investment Opportunities in Residential Real Estate in Gwalior

Following are a few localities in Gwalior to invest in residential properties.

• Mahalgaon

Mahalgaon is a highly developed and prime residential locality in Gwalior. It has well-developed social infrastructures like schools, universities, malls and hospitals surrounding this region. 

Gwalior Junction is the nearest railway station to this place. Also, you can easily access Gwalior Airport from here. Mahalgaon’s location near the State Highway- 37 makes travelling to other cities in Madhya Pradesh relatively easy.

As a real estate investor, you can invest in properties like land, flats and apartments in Mahalgaon to earn high returns. Residential property prices in Mahalgaon start from around ₹1,800 per square foot.

• Morar

Morar is another well-developed area in Gwalior. National Highway- 75 and the Asian Highway- 43 are the major roads connecting this locality to other cities and states. Morar is a hub for educational institutions. Lakshmi bai National Institute of Physical Education, Jiwaji University, Madhav Institute of Technology and Science and Gwalior Polytechnic College are some of the prominent colleges here.

These educational institutions attract students to Gwalior who are likely to seek accommodation in Morar. Therefore, you can earn substantial gains by investing in properties like flats, residential land, and houses. Residential real estate prices in Morar start from around ₹3,471 per square foot.

Read Also: Guide for Solapur Residential Real Estate Investment

Things to Consider before Investing in a Residential Property in Gwalior

Here are some points for you to keep in mind before investing in residential real estate in Gwalior. 

• Safety and Security

A safe shelter and locality are of prime concern for tenants. Therefore, before purchasing any property, it is necessary to conduct locality research. Here, it would help if you analysed matters like the crime rates, women’s safety and the distance from the nearest police station. 

• Amenities

If you plan to invest in buildings or apartments, consider conducting on-site research on their amenities. Make sure to check if the builders provide adequate parking, elevator and ventilation. Some residential buildings provide additional amenities like parks, rooftop gardens, recreation areas, gyms, etc., to attract buyers.

Residential properties which provide these features are likely to fetch more ROI than those which lack these amenities. 

• RERA Authentication

The Real Estate Regularity Authority Act (2016) mandates the formation of a Real Estate Regularity Authority (RERA) in every state to monitor real estate transactions.

Every broker or builder in Gwalior must register their properties on the official RERA portal of the Madhya Pradesh Government. So you can quickly check a property’s authenticity before purchasing or investing in one. 

Stamp Duty in Gwalior

The table below displays the stamp duty charges for purchasing residential real estate in Gwalior.

Registration Charges in Gwalior

Following are the registration charges applicable for purchasing residential real estate in Gwalior

Residential Real Estate Sector in Gwalior- What’s the forecast?

Besides transportation and centres of education, Gwalior also supports an affordable lifestyle. It ranks 12^th out of 220 least expensive cities in India and the most affordable place to live in Madhya Pradesh.

Gwalior hosts three industrial areas Malanpur, Sitholi and Banmore. Tourism, dairy, handicraft, chemical and manufacturing are prime industrial sectors here. However, most of the population here participate in trading firms or own their business. Furthermore, as an education hub, coaching centres dominate business here. This attracts more students to this city. 

A slew of development projects, mostly road infrastructure projects, are taking place in and around Gwalior. This includes the development of the Agra-Gwalior Road and the Gwalior-Shivpuri National Highway project. Recently, the Union Minister of Road Transport and Highways has inaugurated 7 more road projects costing ₹1,128 crore. 

As a result, there will be a boom in the city’s real estate sector. This will help you earn substantial ROI as periodic rentals from residential properties.

Residential Real Estate in Gwalior vs Other Asset Classes 

Regarding ROI, let’s look at the differences between residential properties and other asset classes. 

Residential Real Estate vs Commercial Real Estate

Commercial real estate is relatively more expensive than residential real estate. As a result, the former brings in more ROI than the latter. However, because of its soaring prices, commercial real estate faces higher credit risk. Furthermore, you can receive more tax benefits from residential real estate. 

Discover More: Guide for Gwalior Commercial Real Estate Investment

Residential Real Estate vs Gold

Buying and selling gold is easy, so the gold market is more liquid than the real estate market. Also, gold is a preferable asset for both long and short-term investments, while residential real estate is suitable for long-term investments only. However, you can earn much higher ROI from residential properties than gold.

Residential Real Estate vs Stocks and Mutual Funds

Stocks and mutual funds have a volatile market. Due to this, you can either make a high profit or face massive losses. Therefore, you need a basic idea of this marketplace before investing in stocks. On the other hand, residential properties come with stable returns and have comparatively low market risks.

Residential Real Estate vs Bonds

Both residential real estate and bonds are excellent sources of passive income. Bonds also have a highly liquid market, as finding suitable tenants for residential real estate is time-consuming. However, you can earn more ROI from residential properties than bonds. 

Are you planning to invest in bonds and earn stable returns at low risk? Then, explore our homepage for top-rated bonds that are trending in the market. 

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

Steps to Invest in Residential Real Estate in Gwalior

Here are some basic steps you need to follow while investing in residential real estate in Gwalior.

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

Step 2: Shortlist a few locations and conduct on-site research to analyse the ground situation.

Step 3: Visit these locations for a thorough understanding of your benefits. 

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

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

Step 5: Collect the necessary documents like the sales deed and encumbrance certificate.

Step 6: Pay all necessary charges like stamp duty and registration charges to transfer the property under your name.

Step 7: Consider paying the service charges to brokers or real estate consultants. (If any)

Read More: Guide for Thane Residential Real Estate Investment

Final Word

Investing in residential real estate in Gwalior can fetch you good returns. However, like every other investment, you can also face a certain degree of risk in this form of investment. Therefore, it is advisable to take the help of a real estate broker/agent when choosing a property. Taking the help of a lawyer is also advisable for reviewing or preparing property documents.

Frequently Asked Questions