Property Investment in Vadodara: All You Need To Know

Have you ever thought of property investment in Vadodara? Vadodara, or Baroda, is a key city in Western Gujarat. It has a thriving real estate business and is the 10th largest city in the country! This detailed guide will assist you in making profitable investments and making your own decisions.

What Is Property Investment in Vadodara?

The real estate market in Vadodara is divergent; one will get endless investment options, from affordable to luxurious ones! Vadodara is linked to other prime cities in Gujarat, like Surat and Ahmedabad, by roadways such as the Ahmedabad Vadodara Expressway, and some major railway stations here are Vadodara Junction, Ranoli, Banjwa, and Nandesari.

Further, several renowned educational institutes, tourist attractions, and shopping malls elevate Vadodara's charm. Some include Laxmi Vilas Palace, Pratap Vilas Palace, Sardar Patel Planetarium, Khanderao Market, Downtown Vadodara, Old Vadodara District Court, and Baroda Museum.

Factors To Consider Before Investing in Vadodara Real Estate

Economic Growth

With the presence of several top industries such as Larsen and Toubro Ltd, Angel Lasers Instrument, Safteywala Equipments LLP, Alfa Tech India, Shiva Scientific Glass Pvt Ltd, Siemens and many others, the economic growth in the city is on the rise. Over time, this city has also become a central point for emerging startups and companies like Motion Breeze, NextBlock Technologies, CoolCrop, Merlin Dentifrices Private Limited, Dalnex, and many others.

Infrastructure

Several major roadways and railway projects are ongoing in Vadodara to enhance the city's infrastructure. The development of National Highways Development Project phase 6 is a work in progress. The Vadodara- Mumbai Expressway, approximately 379 km in route, is still under construction. Recently, the Prime Minister inaugurated the Vadodara- Bharuch section of the Delhi-Mumbai Expressway, which is around 90 km long.

Affordability

In comparison to other pricier cities of the country like Delhi and Bengaluru, the cost of living in Vadodara is cheaper as it is roughly around Rs. 102,180.9 ( for a family of four) while it is around Rs. 29,600 (for just one person). According to several reports, Vadodara is 18.5 % less pricey than Bangalore, and even the rent is 63% lower in Vadodara.

Rental Yield

With the heightening demand for real estate properties and demand, Vadodara has become a hive for investors, with an approximate rental yield of 7.5%. Some prime localities like Vadsar, Gotri, Waghodia Road, Harni and Bhayli have witnessed rental yields of 4%, 7%, 4%, 5%, and 5% respectively.

Potential for Growth

The property investment in Vadodara ensures a golden opportunity for sustainable growth and profit, as depicted by the elevated property rates of approximately 29% over the last five years.

Demand of the Location

Vadodara is equipped with a well-grounded power supply, current telecommunications, modern management systems, and many more to improve the attractiveness of the business, ultimately enhancing the location's demand. Strategically, Vadodara is located along the Delhi-Mumbai Industrial Corridor, offering excellent connectivity to numerous national and international markets.

RERA

The Real Estate Regulatory Authority (RERA) Act 2016 says that every state in the country must form an RERA, which will govern all real estate builders to register and record their properties under RERA. Check the buyers' and property's details on the RERA Gujarat's website before buying.

Builder Credibility

While finalising the property for investment in Vadodara, one should do a background check on the portfolio and the reputation of the real estate builder for an advantageous and hassle-free purchase.

Steps to Invest in A Property in Vadodara

Step 1: Conduct a market survey and finalise your investment budget.

Once one has decided to invest in property, it is crucial to run a market survey, which includes the real estate trends and property price rates, before finalising the investment budget, the area around the investment location, and much more.

Step 2: Shortlist a few properties based on your requirements

After deciding the property budget, one should shortlist some properties that will suit their taste based on location, amenities, development in the area, type of property and more.

Step 3: Plan a field visit to the properties to assess the ease of daily amenities

Once the second step is done, one should plan to visit the location of shortlisted properties to assess their various aspects, such as infrastructure, transportation facilities, hospital proximity, etc.

Step 4: After finalising a property, do a background check and check all the property documents.

After making a field trip to the properties' locations, one should prepare for a thorough background check using RERA. Background checking includes the history, legal disputes, builder's reputation, and more.

Step 5: Prepare all the necessary documents, such as the sale deed, agreement, etc., to purchase the property.

Now, one should prepare all the legal documents, including the sale deed, purchase agreement, and others, to move into the final step and avoid unwanted issues.

Step 6: Go ahead with paying for the property. Remember to pay the stamp duty and registration charges as well.

After the final selection of the property and getting contented with the property, one can move to the final step, the payment step! One should include additional costs like registration charges, stamp duty, and the property price rate.

Benefits of Investing in Vadodara Real Estate Property

Affordable City

Vadodara is a perfect blend of modernity and history, which is a magnet for real estate investors to invest in pocket-friendly properties. The rent here is approximately Rs. 15,000 to Rs. 25,000 for 2BHK, the public transport can range from Rs. 450- Rs. 750 monthly and the food costs around Rs. 2,400 - Rs. 3,400.

Employment Opportunities

The city is a hub for numerous industries such as engineering, pharmaceuticals, petrochemicals, and others, ultimately adding economic stability and great employment opportunities. Some top manufacturing industries in Vadodara are ABB, GE, Siemens, Linde, General Motors, Matrix ComSec, Xylum, Larsen and Toubro, Apollo Tyres, Reliance Industries, Sun Pharmaceutical Industries, and others.

Great Connectivity

Several city buses run throughout the city, and there are also many public bus services offered by GSRTC, which are inexpensive. Also, the railway line, NH 8 and others are joining this city to other prime cities like Mumbai, Delhi and others. The city also has many connecting flights to Mumbai and other cities.

Educational Excellence

With many great educational institutes, such as Maharaja Sayajirao University, Parul Institute of Management, GSFC University, Amity University, Sigma University, Frankfinn Institute of Air Hostess Training and many others, Vadodara is an appealing choice.

Strategic Location

Being a central location in Gujarat, Vadodara is a prime junction for several key cities like Surat, Ahmedabad and others. This arrangement also favours orderly transportation and logistics, making it an excellent business option. Further, this city's location along the Delhi-Mumbai Industrial Corridor contributes to numerous national and international markets' great connectivity.

Top Locations for Real Estate Property Investment in Vadodara

Bhayli

Surrounded by numerous water bodies, Bhayli has several connecting roads such as Jay Prakash Narayan Marg Road, Vasant Vihar, Vasna, Makrand Desai and others. This location is well-known and offers several top institutes like Bright Day School, St. Kabir School, Sabari Vidyalaya, and more.

Alkapuri

Alkapuri is a beautiful location on the western side of Vadodara, which is swiftly expanding in infrastructure and real estate evolution. This locality is also known as the new Vadodara. It has excellent connectivity to other prime areas such as Dr Rustom Cama Marg, Rustom Patel Marg, Indubhai Patel Marg and others.

Sama Savli Road

Sama Savli Road is an emerging locality of Vadodara, offering amazing connectivity to Asoj, Tundav, Dumad, Gothda, Bautha, Manjusar, Savli and many others. Some of the amazing amenities provided by this locality include Allmart HyperMarket, Lotus Aura 2, Bansal Mall, Baroda Eye Hospital, New Sarwa Mangal School and many more.

Karelibaug

Karelibaug is a beautiful location located on the northern side of Vadodara, and it is well-known for offering several amenities, including Amicus International School, Sangam Hospital, Tricolour Hospital, Aura International Preschool, Podar International School, Inorbit Mall Vadodara, Center Square Mall and numerous others.

Tarsali

Tarsali is a well-known, fast-developing location in Vadodara and close to localities such as Chikodara, Ghanghretia, Manjalpur, Danteshwar, Makarpura and others. This location is well-connected to other key parts of the city via Susan-Tarsali Ring Road, NH-48 and others. Some top amenities here are Eva The Mall, Inorbit Mall, Sanjivani Hospital, Medistar Hospital, Sun Pharmaceuticals and more.

Risks and Challenges of Property Investment in Vadodara

• Real estate markets are about property rates and demand alterations at specific locations, ultimately affecting investment returns. Often, positive outcomes hinge on the location of the city.
• One of the greatest challenges is selecting the right property for investment and looking for maintenance to sustain the property's value.
• There can be numerous unexpected displacements in interest rates, property values, etc.

Conclusion

What is property investment in Vadodara?

Vadodara's booming real estate business portrays golden opportunities for real estate investors. The magnificent location, diversified economic base, encouraging government policies, great connectivity, superb infrastructure and many more add to the popularity of the real estate business in Vadodara.

Factors to consider before investing in Vadodara

• Economic growth
• Infrastructure
• Affordability
• Rental Yield
• Potential for growth
• Demand of location
• RERA
• Credibility of builder

Steps to consider before investing in Vadodara

• Conduct a market survey and finalise your investment budget
• Shortlist a few properties based on your requirements
• Plan a field visit to the properties to assess their various aspects
• After finalising a property, do a background check and review documents
• Prepare the necessary documents for the property purchase
• Pay for the property, including stamp duty and registration charges

Benefits of investing in properties in Vadodara

• Affordable city
• Employment opportunities
• Great connectivity
• Educational excellence
• Strategic location

Top locations for real estate property investment in Vadodara

• Bhayli
• Alkapuri
• Sama Savli Road
• Karelibaug
• Tarsali

Risks and challenges of property investment in Vadodara

Real estate markets are all abount returns.