Ulhasnagar in MMR Offers Rental Yield of 8%
Ulhasnagar is one of the fastest growing areas beyond Thane and in Mumbai Metropolitan Region (MMR). Situated near Kalyan and Dombivli, the area offers a good rental yield of more than 8 per cent for people who like to invest in rental properties.
The rental yield is obtained by dividing the annual rental income earned from the property by the property’s cost price.
Ulhasnagar features
Ulhasnagar is an area situated just beyond Thane, Kalyan and Dombivli. It is also a part of MMR and is managed by the Mumbai Metropolitan Region Development Authority (MMRDA). The area is also one of the largest jeans manufacturing hubs in the world. It is now increasingly witnessing residential real estate activity.
Several highways and roads connect Ulhasnagar to other parts of MMR and other cities in Maharashtra. These roads include Kalyan-Ahmednagar Road, Kalyan-Shilphata Road and Pipeline Road. The Ulhasnagar Municipal Transport Service buses connect the area to Kalyan and Kailash Colony of Ambernath. There are several city buses available from Mumbai and Thane to the area. The Ulhasnagar railway station is on the Central Line of Mumbai’s suburban railway. This connects the area to both Mumbai and Pune.
Ulhasnagar is mainly an area occupied by Sindhi population who took refuge here after the country’s partition. As the area was later developed as a township, the infrastructure has grown very well here. Social infrastructure here includes educational institutions, religious centres, small and big business centres, entertainment facilities such as Big Cinemas Funcity, and retail shopping centres. Apart from being a jeans manufacturing hub, the area is also close to Ambernath, which is another important commercial centre in Thane. This offers a good number of job opportunities.
Real estate rentals and yield
Good connectivity, social and civic infrastructure, and the presence of business centres as well as factories in the area are contributing to the real estate growth here. Moreover, the proximity to Kalyan and Dombivli, which are upcoming areas in MMR, are also contributing significantly to the real estate activity. The commonly available housing types are apartments. A small number of independent houses and villas are also available in the region.
While Ulhasnagar witnesses significant apartment sales, it also witnesses a good rental transaction. Most of the housing configurations available for rent are 1BHK apartments with a built up area of 600-650 sq. ft. There are a few 2BHK apartments available with a built up area of 1,000-1,200 sq. ft. The approximate monthly rental for a 1BHK apartment is in the range of Rs 6,000-10,000, while that of a 2BHK apartment is an average of Rs 25,000.
A 2BHK apartment in the area offers a good rental yield for people who prefer to invest in rental properties. The approximate price of a 2BHK apartment in the area is in the range of Rs 30-45 lakh. This offers a rental yield of an average 8 per cent in the area.
Hence, if you are looking at earning a good rental yield by investing in and around Mumbai, Ulhasnagar is an area that should be on your radar.
