Rental Yields Rise to 3.62% in 13 Major Indian Cities: Latest Report
The average monthly rent in 13 major Indian cities has seen a significant year-on-year increase of 16.9% to Rs 19.35 per sq ft, while property prices average Rs 5,927 per sq ft. Hyderabad stands out as a standout performer in this trend.
Rental YieldsReal EstateIndian CitiesProperty PricesInvestmentsReal EstateNov 22, 2024
Hyderabad has witnessed a substantial increase in rental yields, which is attributed to its growing economic activities, infrastructure development, and a steady influx of corporate investments. The city’s average monthly rent has surged to Rs 19.35 per sq ft, making it an attractive destination for both investors and tenants. Property prices in Hyderabad have also seen a moderate rise, standing at Rs 5,927 per sq ft on average. This balance between rental income and property value makes Hyderabad a favorable market for real estate investments.
Other cities such as Bengaluru, Mumbai, and Delhi have also shown positive trends, with rental yields and property prices aligning with the national average. Bengaluru, known for its IT hub status, has seen a steady increase in rental demand, particularly in areas like Whitefield and Electronic City. Mumbai, despite its high property prices, continues to attract investors due to its strong rental market, especially in suburban areas. Delhi, with its well-developed infrastructure and proximity to key business districts, remains a popular choice for both residential and commercial real estate.
The report highlights that the rental market has been resilient in the face of economic challenges, with investors and tenants showing a preference for stable, long-term investments. The increase in rental yields is also a result of improved rental policies and better tenant-landlord relationships. The government's focus on affordable housing and the development of rental housing schemes has further boosted the market.
For real estate investors, the current market conditions present a favorable environment for both short-term and long-term investments. The rise in rental yields offers a promising return on investment, while the relatively stable property prices ensure that the overall risk is manageable. Investors are advised to conduct thorough market research and consider factors such as location, infrastructure, and economic growth potential when making investment decisions.
In conclusion, the rental market in major Indian cities is on the rise, with Hyderabad leading the way. The combination of increased rental yields and stable property prices makes it an attractive time for investors to enter the market. As the real estate sector continues to evolve, it is crucial for stakeholders to stay informed and adapt to the changing dynamics of the market.
Frequently Asked Questions
What is the average gross rental yield in 13 major Indian cities?
The average gross rental yield in 13 major Indian cities has reached 3.62%.
By how much has the average monthly rent increased in these cities?
The average monthly rent has increased by 16.9% year-on-year to Rs 19.35 per sq ft.
What is the average property price in these cities?
The average property price in these cities is Rs 5,927 per sq ft.
Which city has shown the most significant growth in rental yields?
Hyderabad has shown the most significant growth in rental yields.
What factors are driving the increase in rental yields?
The increase in rental yields is driven by factors such as growing economic activities, infrastructure development, corporate investments, and improved rental policies.
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