For an investor looking for higher rental income from residential properties, Gurgaon may be the best bet among all cities in Delhi-NCR while Greater Noida will be last choice .The latest report from real estate consultants suggests that the rental yield is 3.5% in Gurgaon, which is higher than the national average of 3%. In Noida, it is 3.2%, Delhi 2.2% and Greater Noida 2%, the lowest in the area.
Rental yield is the annual rate of return an investor can earn from his property. Rental yield, or how much an asset generates as a percentage of its value, has long stagnated nationally at 3%. This is despite the increasing demand for rental housing as an investment asset. The Anarock report says affordable and mid-segment properties are yielding better rent but a lot depends on external factors like location, type of the project, developer’s brand and others.
But luxury and super-luxury homes are not at all rewarding from the rental yield point of view, according to the report.“A large section of tenants in cities falls in the salaried segment. In fact, IT and the IT-enabled services sector has been a key driver for commercial spaces and caused a steady migration to these cities as well,” said Prashant Thakur, head of research at Anarock.
Pradeep Aggarwal, chairman of the national council on affordable housing, said properties in Gurgaon give better returns in terms of rent because the city has the ideal location for people who are always on the move and work in the private sector. “The city is very close to the international airport and real estate developers here have taken care of the taste of people. And, affordable housing rent is also lower. Not only the rental returns, the appreciation of property in Gurgaon is far better than the rest of NCR,” he said.
A consumer sentiment survey by the consultancy showed that around 49% investors in the entire NCR preferred to earn a steady rental income while another 42% wanted to sell their property if they got an appropriate price. Merely 9% wanted to build it as an asset for the future. Experts said the reason for this sentiment was the ever-increasing migrant population around the national capital. In Noida, which too is a major employment hub, people from the private sector prefer to stay there.