Indian Rental Yield Rankings: Ahmedabad Tops the List!

According to the report JAS 2024, Ahmedabad's real estate market has the highest rental yield in India, clocking in at 3.9% Strong demand and affordable property prices make this impressive rental yield possible, compared to other major cities.

During the quarter, the city's rental market experienced a 7.9% increase in rents, with average rents for a 2BHK apartment rising to Rs. 21,100 in areas like Shela and Rs. 23,200 in South Bopal.

High demand in prime localities like Satellite and Prahlad Nagar makes Ahmedabad one of the most lucrative markets for rental investors. The steady rise in rental income potential reflected in the soaring rents for a 3BHK in Satellite and 40,000 in Prahlad Nagar in these areas.

The rental market in Ahmedabad has experienced a steady expansion, with demand increasing by 18.07% YoY across diverse areas and supply decreasing by 5.8% YoY. The city's rising yield and rental rates make it a tempting destination for those looking to reap the rewards of steady income streams and long-term asset appreciation.

Prasun Kumar, CMO, Magicbricks, noted, “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.”

The city of Hyderabad provided another lucrative opportunity for investors, with rental yields soaring from 3.5 percent in the second quarter of 2024 to 3.7 percent in the third quarter of the year. The metro saw an increase in average monthly rents of 28.2% to Rs. 25.17 per square foot, while property prices saw a decrease of 6.2 per cent to Rs. 8,188 per square foot year-on-year.