Homebuying may soar as gross rental yield climbs to 3.62%
Real Estate

Homebuying may soar as gross rental yield climbs to 3.62%

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.

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.

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?