13 Feb Know the ROI Analysis of Flats in 2020
We have to analyse and take care of many variables while investing in real estate. The returns of investment in this field business depend on the location and comparable properties. Therefore, it is hard to calculate the precise investment of returns but we can always draw a rough estimation of the expected return of investment.
Since there is a lot of housing demand and many key players are addressing the challenges in the housing sector, India’s real estate business has a lot of potentials. The numbers revealed in 2017 stated that the rental market was valued at Rs 1.53 lakh crore. The growth volume is expected to be Rs 2.85 lakh crorebu 2023. But the market was majorly affected by the higher rental yields and poor appreciation. As per the reports of the Economic Times, the average rental yield of affordable flats ranging less than Rs 6,000/sqft across cities was almost 3%. The flats of around Rs 6,000/sqft was between 2.4% and 3%. On pan-India the average rental yield is also at 3%.
Capital Yields in different Cities
The micro-markets of real estate in the local cities have seen a lot of fluctuations in recent times. The cities with the lowest yields were Mumbai and New Delhi ranging from 1.6% – 2.4% The cities that have the highest capital yields are Kolkata, Banglore, Hyderabad, Ghaziabad, and Ahemdbdh. Among these, Kolkata tops the list with around 4.4% yield. As far the other cities are concerned the yields are
- Banglore – 4% – 4.2%
- Hyderabad – 3.9% – 4.3%
- Ghaziabad – 3.8% – 4%
- Ahmedabad – 4% – 4.2%
NRI Investments in 2020
The giant houses projects recently launced were ou-numbered in the Mumbai city followed by Banglore, Pune, and New Delhi. NRI’s inclination will be towards these cities as their micro-markets have focused affordable and luxurious projects. In Banglore, the major areas having potential are Devanahalli, Whitefield and Sarjapur Road and Pune’s Hinjewadi and Balewadi areas seem a lot more promising the other areas. If you are looking for premium flats in Banglore or Pune, contact the Vivansaa Group that a wide range of options at affordable prices. Their ongoing project offer 2BHK, 3BHK apartments at Hinjewadi Road, Pune and 25 BHK, 2BHK apartments at Sarjapur Road, Banglore.
Determining Return of Investment
While calculating the return of investment of a property you need to foucs on various factors. The evaluation process comes with two main sources viz. Regular income from rents and Appreciation from owing the property. The best possible way to gain a good return of investment in real estate is to hold on to hold property or REIT shares for at least five to ten years.
It is a really good time to invest in property especially in cities like Banglore and Pune. If you are also planning to buy a flat in these cities and confused what would be a wise choice then associate with the Vivansaa Group. Their current project in Banglore offers you BMRDA approved project of 2 BHK flats in the most lucrative areas on Sarjapur Road that defines luxury clubbed with safety and serenity. Those searching a flat in Pune, the VivansaaCellandine is the best option as it reflects a world-class living experience in the backdrop of a serene locale at Kasarsai in Hinjewadi.