Want Higher Rentals? Check Out Indian Real Estate Avenues With Maximum Rental Yields

RBI regulatory measures
RBI regulatory measures

The rentals have been the key solution to the housing problem in India since ages and are expected to play the same role for times to come. As per a recent report, the rental real estate market that was pegged at one crore units and was valued at $22 billion (Rs 1.53 lakh crore), is expected to be 1.8 crore with valuation $41 billion (Rs 2.85 lakh crore) by 2023.

One can ensure a steady flow of steadily increasing income if one chooses to invest smartly. Here are some of the real estate avenues with maximum rental yields:

  1. Affordable Homes:

Various reports suggest that yields in the affordable homes segment are higher compared to the mid-level or luxury segment. In fact, CEO Magicbricks wrote in ET that across cities,  properties priced below Rs 6,000/sqft have an average rental yield of more than 3 percent while properties priced at Rs 6,000 per sq ft or more had rental yields between 2.4% and 3%.

Clearly, from a rental income perspective, it makes more sense to invest in affordable properties.

  1. Affordable Markets:

Apart from lower-priced affordable homes, some locations are also comparatively priced lower than the prime ones. In all the metros, there are some micro-markets where property prices are reasonable and investors can expect good returns. In such micro-rental yield can go up to almost 4.5% as compared to the average yield per sqft of 3%.

In short, markets with cheaper real estate were found to have higher yields. Some of higher rental yield locations are:

  1. Kolkatta:
  • Garia
  • Barasat

2. NCR:

  • Gyan Khand 2 in Ghaziabad
  • Vasundhara Sector 1

3. Bangalore:

  • Bellandur
  • Hosur Road
  • BTM Layout

4. Hyderabad:

  • Nallagnadla
  • Toli Chowki
  1. Co-Living Segment:

This real estate baby is going to be huge in the coming times. With 30 percent of the population falling in the Millenial category with almost a third, leaving their home towns for further study or work, the co-living segment is bound to grow in leaps and bounds.

The rental yield in such an avenue can go up to 8 percent.



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