Homebuying may soar as gross rental yield climbs to 3.62%

22 Nov 2024 CW Team

Prasun Kumar, Chief Marketing Officer, Magicbricks, commented on the evolving investment landscape “For decades, homebuyers primarily sought properties for personal use or as a primary residence. However, today’s dynamic real estate market is shifting that trend, with residential investments offering better returns. Encouraged by rising rental yields, we expect many buyers to explore multiple property investments, even leveraging loans to do so."

Interestingly, the highest rental yields are not in traditional investment hubs like Bengaluru or Delhi but in Ahmedabad, Hyderabad, Kolkata, and Pune. These cities are becoming hotspots for investors looking to maximize rental income.

Ahmedabad tops the list with a rental yield of 3.9%. The city’s average monthly rent has increased by 16.9% YoY to INR 19.35 psf, while property prices average Rs 5,927 psf. The combination of affordable property rates and robust rental demand makes Ahmedabad a prime destination for investors.

Hyderabad saw rental yields rise from 3.5% in Q2 2024 to 3.7% in Q3 2024. Average monthly rents surged by 28.2% YoY to Rs 25.17 psf, while residential prices experienced a modest 6.2% YoY increase to Rs 8,188 psf. Similarly, Kolkata offers balanced market dynamics with a rental yield of 3.7%. Average rents grew by 12.9% YoY to Rs 22.14 psf, attracting investors seeking stable returns in a city known for its affordable living and increasing job opportunities. Both Hyderabad and Kolkata stand out due to their influx of tenants, driven by burgeoning employment opportunities and cost-effective lifestyles.

For investors, the current market conditions present an opportune moment to capitalize on rental income and property appreciation. With demand remaining robust across major urban centers, these high-performing cities offer lucrative prospects for long-term gains.

The Indian rental market is witnessing a surge as the average gross rental yield across 13 prime cities reaches an impressive 3.62%, according to Magicbricks' latest report. The report highlights significant growth in cities like Chennai and Delhi, which have outperformed the national average. Chennai reported a remarkable 21.3% QoQ increase in rental yields, while Delhi saw an 8.8% rise.Prasun Kumar, Chief Marketing Officer, Magicbricks, commented on the evolving investment landscape “For decades, homebuyers primarily sought properties for personal use or as a primary residence. However, today’s dynamic real estate market is shifting that trend, with residential investments offering better returns. Encouraged by rising rental yields, we expect many buyers to explore multiple property investments, even leveraging loans to do so.Interestingly, the highest rental yields are not in traditional investment hubs like Bengaluru or Delhi but in Ahmedabad, Hyderabad, Kolkata, and Pune. These cities are becoming hotspots for investors looking to maximize rental income.Ahmedabad tops the list with a rental yield of 3.9%. The city’s average monthly rent has increased by 16.9% YoY to INR 19.35 psf, while property prices average Rs 5,927 psf. The combination of affordable property rates and robust rental demand makes Ahmedabad a prime destination for investors.Hyderabad saw rental yields rise from 3.5% in Q2 2024 to 3.7% in Q3 2024. Average monthly rents surged by 28.2% YoY to Rs 25.17 psf, while residential prices experienced a modest 6.2% YoY increase to Rs 8,188 psf. Similarly, Kolkata offers balanced market dynamics with a rental yield of 3.7%. Average rents grew by 12.9% YoY to Rs 22.14 psf, attracting investors seeking stable returns in a city known for its affordable living and increasing job opportunities. Both Hyderabad and Kolkata stand out due to their influx of tenants, driven by burgeoning employment opportunities and cost-effective lifestyles.For investors, the current market conditions present an opportune moment to capitalize on rental income and property appreciation. With demand remaining robust across major urban centers, these high-performing cities offer lucrative prospects for long-term gains.

Infrastructure Urban

09 Mar 2026

Industry Welcomes Infra Push In Maharashtra Budget 2026

The Maharashtra State Budget 2026, presented by Devendra Fadnavis, has received a positive response from the real estate sector, with industry leaders highlighting its strong focus on housing, infrastructure expansion and urban development. The budget outlines the completion of 3.57 lakh houses under Pradhan Mantri Awas Yojana with rooftop solar incentives, alongside significant investments in metro corridors, highways and digitised urban services. It also includes development plans for Pune, Nashik and Nagpur, with the broader aim of strengthening Maharashtra’s economic growth and urban in..

Resources

09 Mar 2026

Vedanta Power Reports 29 Per Cent Women Workforce

Vedanta Power marked International Women’s Day by highlighting rising gender diversity across its workforce, with women now comprising nearly 29 per cent of employees in FY2026, among the highest levels in India’s thermal power sector. At Talwandi Sabo Power Limited (TSPL) in Punjab, women account for about 52 per cent of the workforce. Other assets also show increasing representation, with Meenakshi Energy reporting 26 per cent women employees and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP) recording 19.5 per cent. Women are contributing across engineering and plant operat..

Real Estate

09 Mar 2026

DRA Homes Debuts AI Sales Assistant At Fairpro

DRA Homes has launched Chennai’s first multi-lingual Virtual Sales AI Assistant at the CREDAI Chennai Fairpro exhibition, marking a step towards technology-led customer engagement in the city’s real estate sector. Designed as a digital sales assistant, the AI-powered tool enables prospective buyers to access project information, pricing details, configuration options and amenity specifications. It also allows users to schedule site visits, helping buyers explore projects with greater convenience. Ranjeeth Rathod, Managing Director – DRA Homes, said, “Innovation in real estate is no l..