Finding Value in Housing: Look for Localities with Rental Yields Above 3%
The real estate market is witnessing a cyclical uptick. With prices rising steadily
Real EstateHousingRental YieldIndiansInvestmentReal Estate NewsMay 26, 2024
While cities like Bengaluru, Delhi National Capital Region (NCR), Ahmedabad, and Pune have registered double-digit growth, the price growth has been in single digits in Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Chennai. Experts warn that buyers who delay their purchase may be forced to buy at higher prices later.
The current rise in prices can be attributed to the overall rise in demand and an increase in rental yields. There is strong demand for housing, particularly in areas with high rental yields. Therefore, investors should focus on localities with rental yields above 3% to get the best value.
The Indian real estate market has been experiencing a resurgence after a period of correction from 2015 to 2022. The COVID-19 pandemic further affected the market, but now it's witnessing a cyclical uptick.
Credai, Colliers, and Liases Foras are leading real estate research firms that provide insights and analysis on the Indian real estate market.
Frequently Asked Questions
What is the average year-on-year price growth in India's top eight cities?
10% according to a recent report from Credai Colliers and Liases Foras
Which cities have registered double-digit growth in housing prices?
Bengaluru Delhi National Capital Region (NCR) Ahmedabad and Pune
Why should investors focus on localities with high rental yields?
To get the best value in the housing market
What is the recommended rental yield for investors?
Above 3%
What is the current trend in the Indian real estate market?
A cyclical uptick after a period of correction from 2015 to 2022
Related News Articles
Indian Real Estate Sees Resurgence in Private Equity Investments
Private equity investments in Indian real estate surged 15% YoY to USD 3 billion in H1 2024, driven by growth in warehousing and residential sectors.
Government Offers Flexibility to Taxpayers on Capital Gains Tax for Real Estate Transactions
In a move to simplify tax calculations, the government has introduced an option for taxpayers to compute capital gains tax on real estate transactions. This change is expected to benefit property sellers and reduce disputes over tax liabilities.
Small Cities, Big Opportunities: How Tier-2 and Tier-3 Cities are Revolutionizing the Real Estate Market
Mid-tier cities like Faridabad, Lucknow, Vrindavan, Ludhiana, Chandigarh, Indore, Dehradun, and Jaipur are becoming hotspots in the real estate market, offering a low-cost, peaceful life and high returns on investment.
Pre-Budget Expectations for the Real Estate Sector in Maharashtra
MahaRERA appoints NAREDCO Maharashtra as the first self-regulatory organization. The Maharashtra Real Estate Regulatory Authority makes a significant step towards ensuring transparency and accountability in the real estate sector.
Barbara Corcoran to Headline Kinexions 2025: A Premier Supply Chain Conference
Real estate mogul and entrepreneur Barbara Corcoran will take center stage at the premier supply chain conference of the year in Ottawa, Ontario, Canada.
Housing Sales Surge in India's Top 15 Tier-II Cities by 20% in Value
Coimbatore leads the growth with a 36% increase in sales volume, while Visakhapatnam's real estate market experiences a 21% downturn.