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

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    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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