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What is Rental Yield in Mumbai?

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0 2024-04-04T08:51:51+00:00

Mumbai rental yield is, by definition, the annual rental value, expressed as a percentage of the property's value, that an income-generating asset receives. 

What is the Rental Yield?

Rental yield is a word that is used in the real estate industry to describe the rate at which residential and commercial properties provide a return on investment (ROI). It is an important property data indicator that directly affects consumer demand for a product. For example, a property's higher rental yield indicates better revenue potential and increased investor interest in the asset.

What is the Best Rental Yield in Mumbai?

Since 2019, the average rental yield in Mumbai has increased by 20%. As to the most recent data from Anarock Research, Mumbai's rental yield grew by nearly 15% in just 5 years, from 3.5% in 2019 to 4.05% by September 2023.

City 2019 2020 2021 2022 2023 Q3 2023-end

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

I hope this helps!

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What is a Good Rental Yield?

Rental yield

in Mumbai

is a financial metric used in real estate to assess the return on investment generated by a property through rental income.

It is calculated as the annual rental income divided by the property's market value, expressed as a percentage.

The average annual rental yield in Mumbai for residential properties has risen 15% since 2019. The rental yield has increased from 3.5% in 2019 to 4.05% by September 2023 end. Your query about

rental yield in Mumbai should be solved.

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As far as the

commercial rental yield in Mumbai goes, data from KinghtFrank shows that in Mumbai, the rental yield for commercial properties is at 7.75%. This is anticipated to increase in 2024 to 8% to 9%.

The formula for rental yield is:

Rental Yield (%) = (Annual Rental Income/Property Value) ×100

To determine the

best

rental yield in Mumbai, you can look for property price trends and rental rates in Mumbai. For this, you can check the real estate websites and platforms that provide rental and property price data.

If you have contacts with the local real estate agents or property management companies in Mumbai, seek their help. Connect with real estate investors or professionals in Mumbai who may have insights into the current rental market and yields.

Most importantly, keep an eye on financial news and reports that cover the real estate market in Mumbai.

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