Where to Earn Good Rentals in Mumbai
Mumbai has undoubtedly become increasingly unaffordable. However, it still attracts a huge population that look for rental accommodation, primarily from migrants who come to Mumbai and work in its CBDs such as Churchgate, Colaba, Bandra-Kurla Complex (BKC) and Powai. As such, rental values in surrounding areas too are growing.
Having said that, the best rental yield in an Indian city for a residential unit is 3-4 per cent. As such, it may be difficult for a property owner to find good rental yield in Mumbai. Yet, there are few areas that can give a good rental earnings for a property owner. Following are three such localities that can give good rental earnings.
Powai
Powai is a suburb in Central Mumbai and is considered one of the posh areas in Mumbai. While the area has several property buyers, it also attracts several people who come for rental properties, primarily those who work in the nearby Kensington SEZ. The SEZ has several multinational companies that provide employment opportunities for people in Mumbai. It also has several other social amenities that attract people to this area.
The configuration of rental units available in Powai include 1, 2 and 3BHK apartments, 2 and 3BHK units being the most in demand. The approximate monthly rental for a 1BHK apartment goes up to Rs 25,000-30,000 while the approximate rent of a 2BHK apartment goes up to Rs 35,000-50,000. The approximate monthly rent of a 3BHK apartment may go up to Rs 50,000-1.25 lakh.
Andheri East
Andheri is one of the most posh western suburbs in Mumbai. Andheri is a neighbouring area to Bandra. Due to its proximity to Bandra, BKC and the International Airport, Andheri commands high rentals. While Andheri West commands higher rentals, many people prefer to find rental accommodation in Andheri East where rentals are lower. The area is also closer to the railway stations and upcoming metro. Some of the most popular places in Andheri East include Marol, JVLR and JB Nagar.
The working population living in Andheri look for bigger units. The area also sees more demand for 1 and 2BHK apartments as most of the working population here includes single professionals and small families. A 1BHK apartment may command a monthly rental of up to Rs 20,000-30,000, while a 2BHK apartment commands a monthly rental of up to Rs 30,000-50,000.
Vile Parle East
Vile Parle is another western suburb which has BKC, Juhu and Andheri as its neighbours. It is also just adjacent to the Mumbai International Airport. These amenities automatically draw people to live there. Another highlight is that it lies just adjacent to National Highway 8, which is also part of the Delhi Mumbai Industrial Corridor (DMIC). While many people cannot dream of buying a property in the vicinity, they certainly like to live in rented properties in this area to enjoy these facilities.
Similar to Andheri East, Vile Parle too witnesses a number of 1 and 2BHK apartments available for rent. While a 1BHK property commands a monthly rental up to Rs 20,000-35,000, a 2BHK apartment commands a monthly rent up to Rs 40,000-55,000.
With the growth in demand for rental houses due to high property prices, a property owner may look at some of these localities where they can rent out their property.
