Bottom Line: Rental returns is something that is always on top of the mind of any investor.
In today’s job market even if one is buying it for self use he/she is not sure whether tomorrow the transferable job would require to rent out the property. Therefore, rental returns are one of the key determinants in investing into the property market of Mumbai.
There are five locations across Mumbai that offer better rental returns than the average rental in the city. These are the markets where the average rental values are in the range of 3% and above. These markets are spread across the Eastern and Western Suburbs.
In the Eastern Suburbs Vikhroli is a locality that is by and large residential but turning into commercial destination of late. Furthermore, it is surrounded by important localities like Powai and lies in the heart of the city of Mumbai. There are several big residential complexes in this area and has today turned out to be a very demanding residential area among the people.
The price of 1BHK is in the range of INR 55 lakh to 1.2 crore and the rental yields are in the range of INR 20,000 to 28,000 per month. The rental yields of 2BHK are in the range of INR 45,000 to 75,000 per month and the capital values are around INR 2 to 3 crore. In the 3BHK segment the property prices are in the range of INR 3 to 4.5 crore and the property fetches rental returns in the range of INR 70,000 to 1.2 lakh per month.
Mulund in the north eastern part of Mumbai is located between two strategic nodes of Thane and Navi Mumbai. The locality lies close to a number of developed areas of the city and is home to some of the largest companies of India, like Johnson and Johnson, Wellcome (Glaxo), Hoechst, Richardson Cruddas, Chicago Pneumatic, Oxygen, ACC, Merind and Agfa & Gabriel. As a result, Mulund has grown as a key residential as well as commercial hub.
The price of 1BHK here is in the range of INR 85 lakh to 1.5 crore and the property commands rental returns in the range of INR 20,000 to 30,000 every month. The 2BHK property price over here is around INR 1.5 to 2.5 crore and the rental yields are in the range of INR 30,000 to 40,000 a month. The property rates of 3BHK are around INR 2.5 to 3.5 crore and the rental returns are in the range of INR 40,000 to 70,000 per month.
Vile Parle is surrounded by upmarket localities like Vasant Vihar and Sindhi Colony. It is one of the most developed areas of Mumbai, with a rising number of residential and commercial complexes. It is a preferred location for its seamless connectivity with the business destinations. The distance from Bandra to Vile Parle east is 8.9 kms; Vikhroli to Vile Parle East is 15.5 kms via Chembur Link Road; and distance from Andheri East to Vile Parle East is 4.3 kms via Chakala Road.
The property prices of 1BHK are in the range of INR 1.25 to 2 crore and the rental yields are around INR 30,000 to 50,000 every month. 2BHK apartment in this locality costs around INR 2 to 3.5 crore with the rental returns of INR 50,000 to 80,000 a month. The price of 3BHK goes from INR 3 to 5.5 crore and the rental returns are around INR 80,000 to 1.5 crore per month.
Goregaon is one location that has ideal balance of residential and commercial developments. Economic growth, coupled with infrastructure development in Goregaon have made it a key locality of Mumbai. Goregaon is today home to some of the major corporate offices, like IBM India, Abbott India and Aegon Religare Life Insurance.
The price of 1BHK apartment in this locality is between INR 90 lakh to 1.2 crore and the rental values are around INR 20,000 to 30,000 per month. A 2BHK apartment costs around INR 1.4 to 2.5 crore and the rental yields are in the range of INR 45 to 65 lakh a month. A 3BHK costs 2.3 to 4.6 crore and the rental returns are in the range of INR 70,000 to 1.2 lakh every month.
Thane is undoubtedly the most fast developing zone across the MMR. But its emergence as a rental market with sizeable returns is also adding up to its attraction quotient. A Knight Frank report says that Thane’s strategic location, realistic property prices, rapid infrastructure development and availability of land for housing, have helped it to emerge as a residential location that suits the new age homebuyers.
1BHK apartment costs in the range of INR 70 to 90 lakh and the rental returns are around INR 12,000 to 17,000 a month. A 2BHK can be bought around INR 90 lakh to 1.5 crore and rental yields are in the range of INR 20,000 to 30,000 every month. A 3BHK is available in the price range of INR 1.4 to 2.5 crore and the rental returns are in the range of INR 32,000 to 40,000 per month.