Rental yields in India-Top cities for best returns
Rentals are one of the best passive income earning methods but understanding Rental yield is the best way to ensure that you get the best returns for your real estate investment. The mindset of real estate investors in India is for capital appreciation and not rental amount. The rents haven’t risen in proportion to the housing prices thus making the rental yield low.
Rental Yield is defined as the ratio of the Annual Rent of the property to the Total cost of the property. Generally, in India a 3-5% gross rental yield for apartments is considered an average expectation and is common in most cities. Individual houses usually get a higher rental yield. Commercial properties usually get a rental yield of 6-10%. Along with these two classifications for rental yield now there is a new segment from co-working spaces, student housing and warehousing.
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