Insights on rental yields - Delhi NCR vs Mumbai vs Bengaluru

Mumbai's Real Estate Market: In Q1 2024, Mumbai saw a significant increase in rental yield to 4.15%, up from 3.5% in pre-COVID 2019, making it an attractive investment destination. The region also dominated the Indian housing market with 33% of nationwide sales and showed a reduction in inventory levels, indicating a robust and growing market.

NCR's Market Dynamics: The National Capital Region (NCR) experienced stable to decreasing rent trends and an 11% increase in residential launches, particularly in the ultra-luxury segment led by Gurgaon. Gurugram's rental yield improved to 4.1%, and Noida's to 3.7%, highlighting potential strong rental returns and a balanced supply-demand scenario.

Bengaluru's Sales Growth: Bengaluru's residential market recorded a strong performance with 17,800 units sold in Q1 2024, reflecting a 14% year-on-year growth. East Bengaluru led in sales, and the city maintained a low inventory level, especially in the high-end segment, making it a key market for real estate investments with stable rental yields at 3.6%.

Mumbai Metropolitan Region (MMR) - Q1 2024

Rental Yield: Mumbai's rental yield improved to 4.15% in Q1 2024, up from 3.5% in pre-Covid 2019. This increase makes Mumbai an attractive market for property investments and home loans in India, especially for NRIs seeking profitable rental income.
Sales Performance: MMR dominated the Indian housing market with 33% of Pan India sales and a 71% share in Mumbai alone. Sales surged by 24% YoY, driven by Peripheral Central and Western Suburbs. This growth is indicative of a thriving real estate market in Mumbai, a prime destination for home loans in India.
Inventory Levels: Inventory levels decreased by 2 months QoQ and 7 months YoY, with Mumbai holding the largest share at 74%. MMR's inventory overhang was reduced to 14 months, mainly due to affordable and mid-range segments, suggesting a favorable environment for housing loans in India and a potential decrease in home loan EMIs.
Price Trend: The price trend in MMR showed a positive trajectory in Q1 2024, making it a hotspot for potential NRI home loans in India. This trend supports the growing demand for real estate loans in the region.

Rent Trend: NCR witnessed a stable to decreasing rent trend for 2 BHK apartments, maintaining balanced market dynamics. This stability can influence the mortgage loan calculator trends in India, especially for potential home buyers considering the rent vs. buy decision.
Residential Launches: Despite a minor dip in home sales, NCR experienced an 11% increase in residential launches, with a focus on the ultra-luxury segment led by Gurgaon. This growth is significant for the Indian home loan market, particularly for those seeking home equity loans in India.
Inventory Situation: NCR saw a significant reduction in available inventory, particularly in Gurgaon, contributing to a more balanced supply-demand scenario. This reduction enhances the appeal of home loans, especially for NRIs looking at property loans in India.
Price Trend: The price trend in NCR indicated stability with a cautiously optimistic outlook for the real estate market. This trend supports the need for accurate India home loan calculators and mortgage loan calculators to help buyers make informed decisions.
Rental Yield: Gurugram's rental yield stood at 4.1% in Q1 2024, up from 3.5% in pre-Covid 2019, and Noida's rental yield improved to 3.7% from 3.2% in 2019. These increases highlight the potential for strong rental returns in NCR, making it a compelling region for home loans and real estate investments

Sales Growth: Bengaluru's residential market had a strong quarter, selling 17,800 units, showing a 5% increase from the previous period and a notable 14% YoY growth. This robust sales performance highlights Bengaluru as a key market for home loans in India, including NRI home loans.
Regional Sales Distribution: East Bengaluru led in sales with a 50% share, followed by North (28%) and South (18%). This distribution is crucial for understanding the demand for real estate loans in Bengaluru and the impact on EMI calculations for home loans in India.
Inventory Levels: Bengaluru had a low inventory level at 8% of the national total, with a dominance of the high-end segment. This low inventory level underscores the city's attractiveness for home loans in India, particularly for high-value property loans for NRIs.
Price Trend: The price trend in Bengaluru reflected positive growth and a robust upward trajectory in the market. This growth emphasizes the need for reliable Indian home loan EMI calculators to aid potential buyers in their financial planning.
Rental Yield: Bengaluru's rental yield in Q1 2024 was 3.6%, maintaining its pre-Covid 2019 level. This stable yield supports Bengaluru's position as a favorable market for real estate investments and home loans in India, particularly for those looking at long-term rental income.

MMR showcased strong sales performance and reduced inventory levels, emphasizing affordability and mid-range segments. This is pivotal for the Indian home loan market, attracting both domestic and NRI buyers.
NCR maintained a stable market with a focus on ultra-luxury segments and a balanced supply-demand scenario. This balance is crucial for the mortgage loan sector in India, ensuring steady interest rates and favorable loan terms.
Bengaluru experienced significant sales growth, particularly in the East, with a low inventory level and a strong high-end segment presence. This growth highlights the city as a prime destination for home loans in India, necessitating efficient home loan processes and accurate mortgage loan calculators

Source: Anarock Residential Market Viewpoints Delhi, Mumbai, Bangalore Q1 2024