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
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