Finding Value in Housing: Look for Areas with Rental Yield Above 3%

The real estate sector has witnessed significant growth in recent years

Real EstateHousingRental YieldReraIndiaReal EstateMay 26, 2024

Finding Value in Housing: Look for Areas with Rental Yield Above 3%
Real Estate:The Indian real estate sector has been on a growth trajectory, with housing prices rising by 10% year-on-year on average across top cities. While this growth may seem promising, it's essential for buyers to exercise caution and look for value in housing. One way to do this is by identifying areas with a rental yield above 3%.

The establishment of the Real Estate Regulatory Authority (Rera) in 2016 has forced developers to complete their projects on time, leading to a surge in demand for housing. As a result, housing prices have risen significantly, with cities like Bengaluru, Delhi National Capital Region (NCR), Ahmedabad, and Pune registering double-digit growth.

However, experts warn that buyers who procrastinate amid this steady rise in prices may be compelled to buy at higher prices later. Therefore, it's crucial to identify areas with a high rental yield, which can provide a steady source of income and offset the costs of ownership.

The Indian real estate sector has witnessed significant growth in recent years, driven by factors such as urbanization, increasing demand, and government initiatives. The establishment of Rera has brought in much-needed transparency and accountability in the sector, leading to a surge in demand for housing.

Credai, Colliers, and Liases Foras are leading real estate organizations that provide insights and research on the Indian real estate sector.

Frequently Asked Questions

What is the average year-on-year growth in housing prices across top cities in India?

10%

Which cities have registered double-digit growth in housing prices?

Bengaluru Delhi National Capital Region (NCR) Ahmedabad and Pune

What is the importance of identifying areas with a high rental yield in real estate investment?

It can provide a steady source of income and offset the costs of ownership

What is Rera and what is its role in the Indian real estate sector?

Rera stands for Real Estate Regulatory Authority and it was established in 2016 to bring in transparency and accountability in the sector

Why is it essential to exercise caution while investing in real estate amidst the current growth?

To avoid buying at higher prices later and to ensure a stable source of income

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