"Chennai’s residential yield, a component of net return a landlord can get by investing in property, is much higher than in cities such as Delhi and Mumbai, according to a report by IDFC Institute, an independent, economic development-focused think-tank to investigate the political, economic and spatial dimensions of India’s ongoing transition from a low-income, state-led country to a prosperous market-based economy.
According to the Institute’s India Infrastructure Report 2018: Making Housing Affordable, which uses data available on Numbeo, a crowd-sourced data platform of the costs of living in cities around the world, Chennai’s residential yield is 2.38 which is higher than Delhi (2.28) and Mumbai (2.18).
According to the report, Indian cities have residential rental yields between 2 to 4% which is much lower, compared to cities across the world. Interestingly, cities such as Hyderabad (4.37), Ahmedabad (4.33), Bengaluru (3.47pc), Kolkata (3.33pc) and Pune (2.83pc) have better rental yields than Chennai."
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