The average annual rental yield in cities like Mumbai and Bengaluru has jumped up to 20% since 2019. According to the latest Anarock Research data, Bengaluru has the highest rental yield of 4.35% as of September 2023 end. It was just 3.6% in 2019, showing a jump of over 20% in the last five years.
In Mumbai, the rental yield has increased from 3.5% in 2019 to 4.05% by September 2023 end, which is a growth of over 15% in 5 years.
“Residential rental yield – the annual ROI from capital invested in a property – has never been spectacular in India. The national average of 3% for the last few years before the pandemic was more or less par for the course. However, with rental demand picking up after Covid-19 in 2022, there has been a considerable change – one of the main reasons why investors are back on the housing market,” Anarorck Research said in a report.
| Rental Yield (in %) Across Top Cities | ||||||
| Cities | 2019 | 2020 | 2021 | 2022 | 2023 | Q3 2023-end |
| Gurgaon | 3.5 | 3.4 | 3.5 | 3.7 | 3.8 | 4 |
| Noida | 3.2 | 3 | 3.1 | 3.4 | 3.45 | 3.6 |
| Greater Noida | 2 | 2 | 2.3 | 2.8 | 2.8 | 2.95 |
| Delhi | 2.2 | 2.1 | 2.3 | 2.6 | 2.65 | 2.8 |
| Pune | 3.3 | 3.1 | 3.2 | 3.5 | 3.6 | 3.75 |
| Bangalore | 3.6 | 3.4 | 3.5 | 3.9 | 4.1 | 4.35 |
| Mumbai | 3.5 | 3.3 | 3.5 | 3.8 | 3.9 | 4.05 |
| Navi Mumbai | 2.8 | 2.6 | 2.7 | 3.2 | 3.25 | 3.35 |
| Thane | 2.7 | 2.5 | 2.6 | 2.9 | 3 | 3.15 |
“Among the top 7 cities, Bengaluru has the highest rental yield of 4.35% as of September 2023-end, followed by Mumbai with 4.05%. Pre-Covid in 2019, the rental yield in Bengaluru was at 3.6% – the highest back then, as well,” Anarock Research said.
In Navi Mumbai, the rental yield has increased from 2.8% in 2019 to 3.35% by September 2023 end, which is a growth of over 19% in 5 years.
Also Read: House Rent in Bengaluru, Hyderabad, Pune: Average monthly rentals in top areas jump over 30%
In Thane, the rental yield has increased from 2.7% in 2019 to 3.15% by September 2023 end, which is a growth of over 16% in 5 years.
Residential rental yield measures the annual ROI from capital invested in a property.