Is it the Right Time to Rent Out Your Property?

The Real Estate sector of India is back at a favourable position after the prolonged slowdown of more than a couple of years. Although the residential sales have increased, the income earn from rent has declined. A recent study not even a week old, reveals that the yearly rental income as a percentage of the flat’s cost is stagnant or has dipped across most cities.

Landlords need to wait sometime before they too, can celebrate the revival of Real Estate. They can pin hopes on Chennai and Ahmedabad since these are solely the places out of the country’s 12 leading realty markets that have recorded an increase in rent as compared to the last year.

The biggest city of Gujarat witnessed a significant rise in rental yields from 0.7% to 4.2%. The southern powerhouse recorded a 0.4% growth in year-to-year rental income from 3.2 to 3.6 percent.

On the other hand, the 3 biggest realty markets of the country haven’t been faring well in terms of rental yield. Both NCR (the National Capital Region) and Bengaluru account for decreased rents. The Mumbai Metropolitan Region too records negligible rental growth.

Faridabad, Noida and other satellite towns of the National Capital Region (NCR) experienced a decline in rent that remained unchanged in Gurugram. Bad news for metros like Kolkata and Bengaluru that received the highest rental yields the previous year. These two, have shown a decline in rental yields in 2018.

As depicted by the survey, rental yields are seen to vary on the basis of localities in a city.

For instance, those areas in Gurugram with luxury condominiums have fetched high rental income rising to 3.5% this year while the city as a whole did not record any change in rental yield as such.

In comparison to the last year, the rental income of properties on the Sarjapur Road of Bengaluru has shown an increase of 1.1%. Despite the average rental yield of the city declining from 4.6 to 4.2%, the Brookefield area of Bengaluru bags up an average of 4.9%.

The highest rental income was recorded by an evolving IT area of Hyderabad, Gachibowli, with 5.3% as against the average 4% recorded by the overall city.

Wasn’t the reading helpful? If you have apartments for sale or rent in Kolkata but not able to get a suitable customer, feel free to contact Transventor Property Management. We offer the most accurate solutions to meet all your property buying, selling or renting requirements.

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