India’s rental real estate market holds immense potential. Experts determine rental solutions are the key to addressing India’s housing challenges. In 2017, the country’s rental real estate was pegged at one crore units and valued $22 billion (Rs 1.53 lakh crore). By 2023, the market volume is expected to reach 1.8 crores with a valuation of $41 billion (Rs 2.85 lakh crore). However, maximizing rental yields has been a challenge for the rental real estate market in India, with homebuyers struggling with the important question— ‘real estate where to invest.’ In the past two-three years, low rental yield and poor capital appreciation have hurt investors. A smart choice of investments, value-added services, and online rental disruptors can therefore change the face of the rental real estate market in India.
In India, markets with cheaper real estate have the potential to get higher yields. With a 3.9% return, real estate at Kolkata has the highest rental yield. The rental yield is around 4.4% and 4.3% in localities like Barasat and Garia respectively. Other than Kolkata, cities like Bengaluru, Hyderabad, Ghaziabad, and Ahmedabad also have higher rental yields.
Real Estate Where To Invest: Upcoming Localities in Kolkata
The City of Joy has recently witnessed an industrial and commercial makeover with employment hubs emerging especially around the peripheries of the city. This has been a major reason for the surge in residential properties in Kolkata in the city. Mainland Kolkata has limited space which makes the localities around the fringes a hotbed for real estate traction. In spite of the fast-paced developments, accessibility to infrastructure, and connectivity, Kolkata is one of the most affordable markets in India that offers high rental yields. As a result, real estate Kolkata has gained prominence and captured demand especially from Non-Resident Indians (NRIs) and those living in the nearby cities. If you want to generate maximum rental income in properties at Kolkata, and are searching the web for ‘real estate where to invest’, here are some promising localities in Kolkata—
Flats in New Town
Developed as a smart city, this suburb in Kolkata not only has high-end residential units with proximity to two major roads— the EM Bypass and the VIP Road, the area is also well-connected to bus and other public transport services. Furthermore, commercial properties, clubs, business parks, and offices of top-notch companies like Tata and DLF, make this Government developed locality an ideal concoction of residential and commercial developments.
Becoming a major IT industrial hub, New Town Kolkata witnesses high demand from millennial out-of-state IT professionals. This locality is therefore pegged at number one for rental accommodations in Kolkata, and mostly in the segment of 1BHK, and 2 BHK flats in New Town, Kolkata. The rental ‘asks’ are between Rs 8,000-12,000 per month, and with 3 BHK in the new town— the monthly rental ‘ask’ can go up to Rs 13,500-17,000. Check out the exclusive flats in New Town for buying.
The upcoming metro line running from Airport-New Garia further boosts the residential prospects of New Town, and the connectivity quotient of the locality will foster the demand of the area.
Flats in Salt Lake City
Salt Lake is one of the newer, more metropolitan regions of the city that has witnessed a lot of new construction in the last decade. Plush with great residential and commercial structures, Salt Lake houses some of the biggest IT and software companies in the gated parks. Many premium three-star hotels are also conveniently located in the city’s largest open green space. Residential real estate in this area is available in the range of Rs 6,500-7,000 per sq. ft. Owing to the large IT employers in the area, a lot of employees look for rental homes in this area; this phenomenon makes flats in Salt Lake a worthy investment destination.
Flats in EM Bypass
Located in East Kolkata, the Eastern Metropolitan Bypass, popularly known as EM Bypass has become the primary artery connecting North & South Kolkata. Given the seamless connectivity of the 32 km highway to all the suburban roads running from multiple premium localities across the city, EM Bypass is becoming a hotspot for luxury projects offering flats for sale in Kolkata.
Investing in large residential complexes that house 4 BHK and 3 BHK flats in EM Bypass can yield significant rental yield as well as attractive returns at the point of a future sale. You will find houses that fit into every affordability bracket in this locality, EM Bypass flats that attract the well-heeled citizens of Kolkata are available for anything above 2.5 Cr.
Apartments in Bansdroni
Rental properties in Kolkata from this locality offer the next best rental accommodations with over 60 percent, especially for 2 BHK variants. It is well connected to the southern employment hubs— a crucial reason for the massive rental yield of five percent, ranking the rental yield in Bansdroni as one of the highest in Kolkata.
The locality also boasts an equally divided rental accommodation rate of over 60 percent in the 1 BHK and 3 BHK segment. With the proximity of Masterda Surya Sen Metro Station and the emerging development of housing complexes in the area, the demand in the area is anticipated to rise in the near future, considering that the property prices in the locality have also doubled from the last five years.
Flats in Kestopur
A mouza in the Rajarhat area— Kestopur is a lucrative choice if you are looking for options of ‘real estate where to invest.’ The area is close to the employment hubs of the city like Salt Lake and New Town which are connected within a radius of 8 km. Closely surrounded by prominent areas that offer easy access to developed infrastructure, the area has picked up traction for rental homes with 2 BHK being the most common room configuration in the locality.
Furthermore, developing infrastructure like the new bridge over the Kestopur canal in the works, its connectivity to New Town and Salt Lake, and the expected shorter commute to these prominent areas of the city will further improve the rental yield of the area.
Houses in Baguihati
Located in Northern Kolkata, Baguihati is covered by the Kolkata Metropolitan Development Authority. Connected to the commercial hubs of New Town, Krishnapur, and Dum Dum, Baguihati boosts a four percent appreciation in rental asks.
Baguihati is especially recommended for affordable rental accommodations, as the area is majorly popular among the lower middle-class strata. Common rental configuration starts with 1 BHK for Rs 4,500 per month, 2 BHK for Rs 6,000 per month, and 3 BHK for Rs 10,000 per month.
Furthermore, the four-lane flyover connecting EM Bypass to VIP Road and the proximity of several schools such as Calcutta High and North Point Sr Sec School located along VIP Road is adding to the popularity of the locality.
Flats in Ballygunge
Ballygunge is the most notable upmarket and the best preferred residential locality for houses in Kolkata. The area is well-connected to Kalighat Metro Station, taxis, and bus. If the question of ‘real estate where to invest’ has been your family’s priority, top-ranked schools in the city like Army Public School, Modern High School, and South Point High School are all located in the plush area of Ballygunge. Furthermore, with Park Circus, and Lake Gardens in the vicinity, a great number of families have started to reside here.
Given the area’s posh repute, it boasts of premium projects with the steepest capital rental ‘asks.’ Rental configuration for 1 BHK is over Rs 15,000 and Rs 52,000 for a 3 BHK.
Other Localities in Kolkata
Apart from the above-mentioned localities, Mukundapur, Gariahat, Lake Town, Kalikapur, Patuli, Madhyamgram, Joka, Behala, Dum Dum, Kasba, EM Bypass, and Salt Lake are also gaining prominence in the residential sector of real estate Kolkata.
With the city in general refurbishing to several civic and social infrastructure developments, upcoming projects of metro lines in the works, marked by the presence of schools, and healthcare institutes, retail malls, shopping complexes, residential localities in Kolkata are adequately endowed with social infrastructure promising healthy returns on rental investments.
In the future, healthy traction from the homebuyer community is thus anticipated for properties in Kolkata. It is however always advisable to consult a real estate professional before making hefty investments.
Real Estate Where To Invest: Guide for higher rental income
If you want to yield higher rental, we have put together the following guidelines to help you make wise decisions in rental investments:
Real Estate in India has a huge latent demand from the country’s millennial looking for co-living options. It includes both the student community and the migrant working professionals ranging from the 18-35 age bracket. Millennials make up around 30% of India’s population, therefore if you are pondering over the dire question— ‘real estate where to invest,’ investing in co-living housing has both demand and opportunity to invest.
The affordable housing segment has the highest traction
The need for rental housing is also greater and more pressing for low- income groups of the country. Rental housing is the only affordable option for daily wagers and migrant workers from informal sectors. Based on Government data, between 26-37 million families in urban India live in informal housing. Therefore, investing in India’s affordable home segment yields higher returns.
The overwhelming outcome of urban rental housing
Furthermore, in India, there is an extensive group of people who are unwilling to purchase property and prefer living in rented units, rather than troubling themselves with endless paperwork and issues faced by property owners such as maintenance and the payment of taxes.
In big cities in India, especially in a city like Kolkata, rental housing is a vital option of investment. Real estate Kolkata with high rental income further also provides an opportunity to service this upcoming demand from a diverse group of people. These include people relocating to different towns and cities for work, students moving for education, public sector employees with postings without accommodation provisions, and informal sector workers. To such groups of people owning a house is not an option because their stay is usually temporary, or they cannot afford to buy a house.
As India is rapidly urbanizing in the recent decades, and with the urban millennial population growing substantially, in the coming years the co-living rental housing market is anticipated to foster the residential real estate sector in India. A substantial number of innovators and real estate companies have already entered the segment. Additionally, in metro cities of the country, rental housing is expected to be a far more viable option for those seeking accommodation in both the formal and informal sectors.
Real estate is any property consisting of the land and the buildings on it. A flat is a real estate because one does not buy just the structure alone. They also buy part of the land upon which the structure is built. This is known as the owner’s Undivided Share in the Land or USL. Thus, the ownership of the land upon which the building is built is divided amongst all the flat owners. If the value of the land increases over time, so does the value of the flat.