According to a report, the city is leading the race with net rental earnings of 3.14 percent, followed by Gurugram with 2.27 percent, Noida, and Gr. Noida in the third position with 2.78 percent. The national capital city Delhi secured the fourth position with 2.55 percent.
Ghaziabad has a large office space for sale with industrial units as its base. The city adjoins Delhi via Raj Nagar extension and hence is an entry door to a huge number of jobseekers. This year Ghaziabad outshined in the return on investment as residential properties receive high amount of rentals. The commercial shops in Ghaziabad are also one of the reasons behind rise in net rental earning.
Reasons that make Ghaziabad top net rental yielding NCR city:
Location preference – Ghaziabad is the most preferred living city for the professionals working in Sector 62, 63, and other nearby areas of the adjoining Noida city. The employees working in Noida, largely opt to reside in the Indirapuram, Ghaziabad as it offers quick accessibility to their workplaces.
Those who can’t find a rented residential property in Indirapuram look for tenant accommodation in Vasundhara and Vaishali. These three localities of Ghaziabad offers metro and road connectivity. The smart livability here makes these the most preferred localities in Ghaziabad for the tenants.
Low Housing Units – In comparison to Gurugram, Noida, and Greater Noida, the housing inventory is low in Ghaziabad. According to a report, the city has the lowest listing for 2BHK apartments for rent, in comparison to the Noida, Greater Noida and Delhi. Ghaziabad has the lowest share of merely 10 percent out of the total properties listing of the Delhi-NCR region.
Although, the commercial shops in Raj Nagar extension and limited residential properties for rental purposes are also behind the jump in net rental earning in Ghaziabad.
Infrastructure – The fast-paced development of infrastructure is an important reason behind the surge in net rental earning in Ghaziabad. The 10.3 Km long stretch of Hindon-elevated road connects UP Gate to Raj Nagar extension. Other than this, the Regional Rapid Transit System (RRTS) and Delhi Meerut Expressway are the factors behind the rise in the net rental earning.
Industrial Area – It won’t be wrong to say that Ghaziabad banks upon industrial units. The city is a hub of manufacturing, paint, food, beverages, and rubber industries. People from the neighbouring cities and states also come with a hope to get employment here. This results in the demand for rental residential properties in Ghaziabad.
Formula to calculate Net Rental Yielding:
Annual rental income / market value of the property * 100 = Rental earned.
Each monetary transaction is a result of mathematical calculation and it implies here also. The rental earned is calculated by dividing the annual rental income with the market value of the property while multiplying it with 100.
If experts are to be believed, then the all above mentioned factors and the situation arose due to COVID 19 is responsible for the jump in net rental earning in Ghaziabad. The Nyay Khand 1, Shalimar garden, Vasundhara, Raj Nagar extension, and Vaibhav Khand localities in the city have a high rental earning of up to 4 percent. Out of these areas, some indicate positive growth of 6 to 8 percent.