Despite its reputation as one of the most expensive property markets in the world, Mumbai continues to surprise investors looking to diversify their portfolios and increase their return on investment.
The city provides a variety of housing alternatives to potential homeowners in various locales, ranging from villas to flats. When considering a property investment, it’s important to check not only the location, building quality, and surrounding area, but also the rental yields. The appeal of Mumbai over Navi Mumbai and Thane among commercial office space occupiers is the main reason for its high rental yield. The bulk of Mumbai’s working population chooses to rent a house nearby because office space leasing is still at an all-time high. As a result, Mumbai’s rental rates have been steadily rising throughout the years. As a result, if you’re looking to invest to make a rental income, Mumbai is more likely to give superior returns in MMR. The following are a few micro-markets whose annual rental yields grew the most over the study period:
The area’s rental appeal was boosted by its proximity to the well-known micro-markets of Kalina, Andheri, Ghatkopar, Saki Naka, the city’s well-known industrial sector, and the Bandra-Kurla Complex’s (BKC) Central Business District (CBD). Kurla (West) also has unrestricted access to the rest of the city thanks to the Eastern Express Highway (EEH) and Lal Bahadur Shashtri Marg.Kurla has been a residential hotspot in the city for migrant workers and a desirable home choice for the investment community, thanks to its hassle-free living circumstances and numerous career prospects.
Mahalaxmi, a prominent neighborhood with a bevy of contemporary facilities, powerful infrastructure, and a smooth networking network, is home to various B-town superstars. However, because the typical property values in the region are exorbitantly high, many people interested in settling down in the area opt to rent rather than buy. While the monthly rent for a medium-sized 2 BHK property in Mahalaxmi is between Rs 90,000 and Rs 1.3 lakh, the EMIs might be anywhere between Rs 3-3.5 lakh. As a result, rental properties are a popular choice, according to Vijay Kumar, the Property Consultant at Jai Ambe Real Estate.With the projected Cuffe Parade-Mahalaxmi metro route and the building of proposed bridges near the Mahalaxmi Railway station, Mahalaxmi’s investment potential might rise even further.
One of the most important aspects that led to the area’s rental appeal is its geographic position. The micro-market is close to the Mumbai Harbour Line and the Santacruz-Chembur Link Road, providing easy access to many sections of the city such as Andheri, Goregaon, and Panvel. A surge of high-rise residential buildings in favor of traditionally built chawls, as well as an increase in the number of Occupancy Certified (OCs) developments, have further improved the area’s desirability among tenants. The average monthly rent for a 2 BHK property in Tilak Nagar is between Rs 30,000 and Rs 35,000, based on a purchase price of Rs 1.5-2 crore.
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