Ghaziabad is considered to be on the top in terms of the highest rental yields in comparison to other NCR states. The area stands out for having many industries and a comparatively low pile-up of housing inventory. However, the development of Ghaziabad has its origin from its industrial settings. With great economic growth and job opportunities, Ghaziabad has been boosted with a great migrant working population. Furthermore, it\’s great proximity with the national capital has made it a gateway to the National Capital Region (NCR) for migrants from Uttar Pradesh and further east.
The steady increasing population and relatively strained supply have given rise to higher rental income for the comparable plot size in Delhi, Gurgaon or Noida. Moreover, Ghaziabad has the highest net rental yield of almost 3.14%, whereas Gurgaon has a net rental yield of 2.27%. With this, Noida and Greater Noida remain at 2.78 per cent, and Delhi has 2.55% of net rental yield.
There are many reasons to believe why rental yields of any property in Ghaziabad are higher. If the people are specifically seeking to earn rentals through real estate investment in Delhi NCR, then Ghaziabad would be an ideal situation. Thus, here are four key reasons why Ghaziabad has more rental yield than the other part of Delhi NCR.
Settlement Structure
Considering the settlement structure of Ghaziabad, the working population of Sector 63 and 62 in Noida prefer to live in Indirapuram and areas nearest to Ghaziabad. Usually, many workers that come from eastern Uttar Pradesh that are experienced in industries in Ghaziabad seek to stay in Ghaziabad rather than in Noida or Delhi. Thus, high rental residential areas with great proximity to the workplace become the ideal option rather than a cheap and distant option.
Generally, high rental areas in Ghaziabad such as Vaishali and Vasundhara provide excellent proximity to Delhi and the metro network. However, the settlement structure keeps changing with time, and it is among the many factors affecting the rental yield.
Industrial Developments
Ghaziabad has the dual advantage of being a part of the NCR and having many industrial developments within the region. Most of the industries include rubber industries, food, paints, beverages, real estate and manufacturing industries that have created several job opportunities. Due to more resultant crowding, it has led to an increase in higher rentals for homes in Ghaziabad.
Lesser Housing Inventory
In comparison with Gurgaon, Noida and Greater Noida, Ghaziabad stands out for having the least number of properties available on rent. Considering the total properties listed for rent in Delhi, Noida, Ghaziabad, Noida and Greater Noida, Ghaziabad has the lowest share of around 10% for a 2BHK unit. However, the demand for apartments is steady, and the supply side constraints automatically fuel rentals. Renowned projects such as Migsun Roof, Migsun Kiaan and more are among the popular residential properties in Ghaziabad.
Infrastructure Projects
Projects such as Regional Transit System (RRTS) and Delhi-Meerut Expressway are some of the essential reasons why Ghaziabad is having an influx in the rental yield in NCR. Furthermore, two important stations of RRTS that are Guldhar and Duhai, are located in Ghaziabad. With this, a proposed multimodal transport hub at Sahibabad in Ghaziabad is another reason which will keep the rental demand high.
In the upcoming years, the workforce that is engaged in these projects will certainly sustain housing demand from the blue-collar segment. The Ghaziabad Development Authority (GDA) has also planned to stretch out the current metro routes from Mohan Nagar to Vaishali. The routes are proposed to be extended from Sector 62 to Sahibabad Extension, and Shiv Vihar to Mandola in Loni. As a result, it will reduce the traffic issues in Ghaziabad and promote the rental sentiment in the area.
