The average annual rental yield in cities like Mumbai and Bengaluru has jumped up to 20% since 2019. According to the latest Anarock Research data, Bengaluru has the highest rental yield of 4.35% as of September 2023 end. It was just 3.6% in 2019, showing a jump of over 20% in the last five years.
In Mumbai, the rental yield has increased from 3.5% in 2019 to 4.05% by September 2023 end, which is a growth of over 15% in 5 years.
“Residential rental yield – the annual ROI from capital invested in a property – has never been spectacular in India. The national average of 3% for the last few years before the pandemic was more or less par for the course. However, with rental demand picking up after Covid-19 in 2022, there has been a considerable change – one of the main reasons why investors are back on the housing market,” Anarorck Research said in a report.
“Among the top 7 cities, Bengaluru has the highest rental yield of 4.35% as of September 2023-end, followed by Mumbai with 4.05%. Pre-Covid in 2019, the rental yield in Bengaluru was at 3.6% – the highest back then, as well,” Anarock Research said.
In Navi Mumbai, the rental yield has increased from 2.8% in 2019 to 3.35% by September 2023 end, which is a growth of over 19% in 5 years.
Also Read: House Rent in Bengaluru, Hyderabad, Pune: Average monthly rentals in top areas jump over 30%
In Thane, the rental yield has increased from 2.7% in 2019 to 3.15% by September 2023 end, which is a growth of over 16% in 5 years.
Residential rental yield measures the annual ROI from capital invested in a property.
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