Good news for landlords! Net rental yield in India one of the highest in the world
The real estate market in India has been witnessing exponential boom over the last two years. With rentals skyrocketing, the sector has remained buoyant with property owners enjoying the lucrative appeal of their property investment. And it is interesting to note that the net rental yield in India is one of the highest in the world.
According to NoBroker, the average rental inflation in India has surpassed that in Singapore, London & New York. For instance, the average rental inflation in Singapore has been around 29%. However, the net rental inflation in India is higher than these countries, with some pockets of major cities witnessing an exponential rent increase of 30% and above.
And this is not without reasons.
For example, with offices opening in major cities, the demand for properties around IT parks and office hubs has increased manifold. The supply is still catching up with the increasing demand. This has led to the surge in rental yield.
Also Read: Top reasons why accurate documentation is crucial while investing
Furthermore, cities such as Mumbai and Bangalore, with new metro corridors coming up, have also seen an increase in demand for houses along these metro corridors. With the demand rising, properties in proximity to metro corridors in these cities have witnessed 15%-18% rent inflation.
The housing rents have seen a massive jump in Bengaluru in the last year. The average rent inflation in the IT capital has been 24%, with rent inflation in certain areas of the city reaching 30%.
Besides Bangalore, housing rents have soared in other major cities such as Hyderabad and Chennai. The average rent inflation in Chennai has been 18%, closely followed by Hyderabad, where the rise has been 16%. Some pockets in
Read more on financialexpress.com
