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Guide for Nizamabad Residential Real Estate Investment

9 min read • Updated 12 May 2023
Written by Anshul Gupta

Nizamabad is well-connected to the other cities of the country by roadways and railways. Modern infrastructure and amenities like educational institutions and healthcare facilities are available in this city. There are numerous shopping malls and markets to cater to the needs of the people.

Apart from that, Nizamabad is also an important industrial centre and a tourist destination for many. The city has a developed industrial sector. 

Due to the high employment opportunities and developing infrastructure, Nizamabad is an ideal place to buy a home. Read about the residential real estate investment opportunities in Nizamabad below.

Top Reasons to Invest in Nizamabad Real Estate

Here are some of the prominent factors which make Nizamabad a very liveable place in Telangana: 

  • Transport

Having excellent transport facilities, the city is well-connected to the other cities and towns in the country through roadways and railways. 

Nizamabad is only 175 km from Hyderabad. You can easily travel by car or take a bus ride. These buses connect this city to Secunderabad and Hyderabad.

Nizamabad is also connected to Secunderabad and Hyderabad. There are 7 trains currently running between Nizamabad and Hyderabad.

The nearest airport to Nizamabad is the Rajiv Gandhi International Airport in Hyderabad which is 224 km from the city.

  • Industries and Employment

Nizamabad is a major industrial centre in Telangana. The state is also investing funds for attracting new industries. Under the “Telangana State Industrial Project Approval and Self-Certification Program”, there will be speedy processing of the applications for investment.

To make Nizamabad the best industrial investment destination in the country, the state government has announced several incentives for new investors. With the increasing industrial investments, there will be a spurt in employment opportunities in the city.

  • Liveability

Nizamabad is one of the best cities to live in current times. It has a very low cost of living. The monthly cost of living in this city can be less than ₹22,250.

Another major factor which makes Nizamabad an ideal location for residence is the high safety and security that this city offers and a very low crime rate. The current crime rate in the city is 25%, as compared to the much higher crime rate of Hyderabad, which stands at 42.60%.

Despite having a lower cost of living than many other cities, the city has all the necessary modern infrastructure and amenities that are sought out for having a comfortable life in the city. 

There are numerous private and government hospitals in Nizamabad, like the Government Hospital and the Government Medical College, Sunrise Super Speciality Hospital, Manorama Super Speciality Hospitals, and others. 

There are also several educational institutions in Nizamabad. Some of the best educational institutes in this city are Ramakrishna Educational Society, Triumphant Academy and Mahatma Phule Paramedical College.

Residential Real Estate Investment Opportunities in Nizamabad

These are some of the best localities in Nizamabad where you can invest profitably in residential real estate:

  • Kamareddy

Kamareddy is a prominent residential locality in Nizamabad. It is one of the safest places in this city.  

It has excellent connectivity facilities, which is a major advantage for anyone wanting to reside in that location. There are 10 bus stops near this location. This area is also near the Kamareddi railway station.

Apart from transportation facilities, Kamareddi also has good educational and healthcare facilities. Some of the best schools in this locality are Gouthami Public School, Krishnaveni School and Kennedy International School. There are several hospitals nearby which can cater to any emergency requirements, such as Jaya Multi Speciality Hospital, Suraksha Hospital and Sri Padmavathi Multispeciality Hospital.

Due to the availability of modern state-of-the-art infrastructure and amenities, Kamareddi is a popular residential destination for many.

  • Vinayak Nagar

Vinayak Nagar is another major residential locality in Nizamabad. Apart from its good transportation facilities, it also has numerous hospitals, like Pratibha Super Speciality Hospital, SSK Super Speciality Hospital, Kiwi Speciality Hospital and Sri Surya Hospital. There are also 11 schools nearby.

This area is a major recreational hub in the city. There are several shopping malls like South India Shopping Mall and Tirumala talkies Complex. There are also numerous restaurants which you can visit on weekends.

Thus, Vinayak Nagar is another good locality where you can have a comfortable life.

Things to Consider Before Buying a Residential Property in Nizamabad

Here are some of the factors which you should keep in mind while selecting a property:

  • Accessibility to Infrastructure and Amenities

While choosing a property, you must keep in mind to look at its proximity to the necessary infrastructure and amenities like bus stops, schools, colleges, and hospitals. You should also consider the number of malls and restaurants in this location and understand whether this is a commercially important location.

Any property located in an area which is near these required infrastructures and has good connectivity is bound to fetch you a good resale value and high rental prospects.

  • RERA Verification

Under the Real Estate Regulatory Authority Act, 2016, every state has a statutory body which was established to regulate its real estate market.

This regulatory body is aimed at maintaining transparency and accountability in the real estate business and eliminating property-related fraud.

Therefore, before investing in a residential property in Nizamabad, visit the Telangana RERA website and check the authenticity of the property and its builder.

Stamp Duty in Nizamabad, Telangana

The stamp duty charges in Nizamabad are given in the table below:

Sales AgreementStamp Duty
Sale of immovable property in corporations, selection grade and special grade municipalities4%
Sale of immovable property in other areas4%
Sale agreement with possession4%
Sale agreement without possession0.5%
Sale agreement with GPA5% (4% adjustable and 1% not adjustable)

Registration Charges in Nizamabad, Telangana

Given in the table below are the registration charges for residential real estate in Nizamabad:

Sales AgreementRegistration Charges
Sale of immovable property in corporations, selection grade and special grade municipalities0.5%
Sale of immovable property in other areas0.5%
Sale agreement with possession0.5%
Sale agreement without possession0.5%
Sale agreement with GPA₹2000

Residential Real Estate Sector in Nizamabad: What’s the Forecast?  

The state government of Telangana is pushing towards developing the infrastructure of Nizamabad to attract new investments in the industrial sectors of the city. Plans are to initiate industrial growth by focusing on the establishment of large and small industries in Nizamabad. The main focus of industrial development in the district is in software and information technology.

Due to such developments, the residential real estate industry is poised towards witnessing rapid growth as the demands for living space will increase with more job-seekers migrating to the city.

Residential Real Estate vs Other Asset Classes

  • Residential Real Estate vs Commercial Real Estate

Commercial real estate can yield higher returns since it can produce a higher rental income than residential properties. It is however easier to get tenants for residential properties due to their low rental cost. Residential real estate also can get you some tax exemptions which you would not get in the case of commercial real estate.

  • Residential Real Estate vs Gold

Due to the rental prospects of residential real estate, it can get you higher profits than gold. However, gold has higher liquidity than residential real estate. Thus, it is ideal to invest in residential properties if you have a mid to long-term investment plan.

  • Residential Real Estate vs Stocks and Mutual Funds

Stocks can get you higher profits than residential real estate. However, investing in stocks involves a higher risk since the returns fluctuate according to market conditions. This makes residential properties a safer investment option.

  • Residential Real Estate vs Bonds

Both residential real estate and bonds can get you a stable income. However, investing in bonds involves lower credit risk. Furthermore, bonds have higher liquidity than residential properties.

Are you interested in investing in bonds? Register on our platform and start investing in top-rated bonds in the market at no additional costs and hidden charges.

Given below is a table which compares the different asset classes based on the returns, liquidity, risk, volatility and ticket size:

ParametersCommercial Real EstateStocks & Mutual FundsGoldResidential Real EstateBonds
ReturnsHighHighModerateModerateModerate
LiquidityLow High HighLow Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High LowLow Low 
Ticket SizeHigh Varies LowHighVaries 

Steps to Invest in Residential Real Estate in Nizamabad

Follow these steps to invest in Nizamabad’s residential real estate:

Step 1: Fix your investment budget. 

Step 2: Search online for the best areas which are developing rapidly and have a high rental potential.

Step 3: Select some properties and visit the sites to assess them in terms of infrastructure and amenities available nearby. 

Step 4: Once you finalise a property, prepare the necessary documents of ownership like the title deed, encumbrance certificate and possession letter.

Step 5: Complete the payment process and pay the requisite stamp duty and registration charges for becoming the legal owner of the property.

Final Word

Nizamabad is a rapidly developing society. With the increasing commercial investments in the city, the demand for residential property is bound to rise. Thus, it is the right time to invest in residential property in Nizamabad to get high returns in the future.

For selecting the right property, you should consider taking the help of a real estate agent.

Frequently Asked Questions

What are the current property prices in Nizamabad?

The property prices in Nizamabad vary according to location. The average property prices in Nizamabad range between ₹2500 and ₹5000.

What are some of the best localities where I can buy a residential property in Nizamabad?

Apart from Kamareddy and Vinayak Nagar, you can invest in residential real estate in other areas of the city like Kanteshwar, Bodhan, Dichpally, Mubarak Nagar, Pragathi Nagar, Subhash Nagar and Navipet.

What is registration charge?

The registration charge is the payment that is charged by the state government to put a contract deed in the state records, which is prescribed under the Indian Registration Act, 1908.

What is stamp duty?

Stamp duty is a legal tax that is imposed by the state government on the sale of a property. It is payable under Section 3 of the Indian Stamp Act, 1899 and is levied to legalise the registration agreement.

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Anshul Gupta

Co-Founder
IIT Roorkee Alumnus and CFA with experience of structuring debt products worth more than 15000Cr for institutional and retail investors.

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