MMR: Top 5 Markets to Fetch Maximum Rental Returns

Mumbai, the financial capital of India, is one of the most sought after cities for home buying in the country. At the same time, Mumbai also witnesses a significant demand for rentals. Most of the demand comes from migrant population working in some of the Central Business Districts (CBDs) or the population working in nearby industrial areas.

CommonFloor, in its recent rental report, identified some of the top rental destinations in the Mumbai Metropolitan Region (MMR) during the first quarter of 2015.

Here’s a snapshot of three potential areas that an investor can consider for good rental returns.

Mira Road

Rental Yield: 4%

Mira Road is one of the fastest growing real estate hotspots in MMR in recent times. Situated in the far northern part of Mumbai, just beyond Dahisar, the locality is part of Mira Bhayander.

Growth Factors

• Western Express Highway (WEH)
• Connected to Ghodbunder Road in the East, thus enjoys connectivity to Thane and Navi Mumbai.
• Good Transportation via regular BEST buses, MBMT (Mira Bhayandar Municipal Transport) and TMT (Thane Municipal Transport)
• Railway connectivity via the western line of the Mumbai Suburban Railway
• An extension of the Mumbai metro from Dahisar up to Mira Road is also proposed.
Currently, most of the available residential properties available for rent in Mira Road are 1, 2 and 3BHK apartments.

Powai

Rental Yield: 3.5%

Powai is a north-eastern suburb of Mumbai and is a posh locality located on the banks of Powai Lake.

Growth Factors

• Presence of Kensington SEZ
• Important roads that connect the suburb include Jogeshwari-Vikhroli Link Road (JVLR) and LBS (Lal Bahadur Shastri) Marg.
• The Eastern Express Highway (EEH), which connects the eastern suburbs, passes close to Powai.
• The Eastern Freeway was opened to public last year, which has significantly improved the area’s connectivity with South Mumbai
• Regular BEST and A/C bus
• About 5 km from the city’s International Airport.
Most of the available units for rent in the suburb are 1, 2, 3 and 4BHK apartments.

Andheri East

Rental Yield: 3%

Andheri, once a regular western suburb, is currently touted as one of the most sought-after regions in Mumbai for rent. The suburb is divided into the western and eastern zones.

Growth Factors

• Connectivity via Airport Link Road, Sahar Elevated Road and Jogeshwari Vikhroli Link Road (JVLR); and Andheri Railway Station.
• Western Express Highway (WEH) passes through the area.
• Andheri East has two metro stations in its proximity – one at WEH and the other in Azad Nagar. There is one more metro station planned at Santacruz Electronics Export Processing Zone (SEEPZ) SEZ.
• Both the domestic and the international terminals of the Mumbai International Airport are also in proximity to the area.
• Andheri East is also close to several business and industrial hubs. SEEPZ SEZ is just about 1.5 km away while Bandra Kurla Complex (BKC) is about 7.5 km away.
• The most commonly available units available for rent are 1, 2 and 3BHK units. The average rental yield in the area is about 3 per cent.

Goreagon East

Rental Yield: 3%

Goregaon is a western suburb situated along WEH. While it is located farther away from key CBDs in comparison to suburbs such as Bandra and Andheri, its excellent connectivity and strategic location makes Goregaon East a sought after area.

Growth Factors

• Well connected to other suburbs via the Aarey Road.
• The western line of Mumbai suburban railway passes through Goregaon East. The area is situated at as short distance from business areas of both the eastern and western suburbs.
• Nine kilometers away from Powai SEZ and about six kilometers away from Andheri SEEPZ.
• A metro station is planned in Aarey Milk Colony, close to the area.
• Home to the Mumbai Film City.
• Some of the commercial centres in the area include Aarey Milk Plant, Westin Hotel and Oberoi Mall.
The most commonly available residential units for rent are 1, 2 and 3BHK apartments.

Malad West

Malad is a western suburb situated in proximity to posh areas of Goregaon and Andheri, on the coast of Arabian Sea. The western line of Mumbai suburban railway divides the suburb into Malad West and Malad East. Malad West’s good connectivity to key important CBDs make it a sought after area for rentals.

Growth Factors

• Well connected via Link Road and S.V Road.
• Marve Road is an important road in the area that connects Link Road to S.V. Road.
• WEH lies in proximity to the area, which connects it to CBDs of BKC and Andheri SEEPZ.
• Malad Railway Station lies on the western line of Mumbai’s suburban railway network.
• A metro station is also planned in Malad.
• The area itself is an upcoming IT/BPO hub.
• Malad West offers a number of 1, 2 and 3BHK apartments for rent.

Hence, if you are looking to invest in an apartment in Mumbai that offers a good rental yield, these areas should be in your radar.