HOUSE PURCHASE AFFORDABILITY

Cities that command The highest
rental yield

Moneycontrol-Liases Foras House Purchase Affordability Index is a survey aimed at drawing up a list of the top five affordable cities in India based on homebuyers’ capacity to rent a house rather than purchase it. The survey measures the rental yield in distance bands. Cities have been divided into different distance bands based on the travel time from a housing project in the city to the city centre or the Central Business District.
Cities with higher rental yields are the most affordable. This is also due to the fact that capital values of properties are largely speculative but rental values are not. It is perhaps due to this reason that the pandemic has had a much bigger impact on capital values rather than on rentals.
Presented by: sponAdv

HERE'S WHY THESE
CITIES ARE THE MOST
AFFORDABLE

Presented by: sponAdv

Bengaluru is ranked the most affordable city in India especially when it comes to an individual's capacity to rent a home against the option of purchasing it and the distance from the central business district. The other top four cities include Indore, Rajkot, Vadodara and Kolkata, according to the Moneycontrol-Liases Foras House Purchase Affordability Index.

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city
INDORE
Ranks second in terms of rental yields
  • City divided into two distance bands
  • Maximum distance travelled is 21.3 km
  • Rental yield more than 4%
city
RAJKOT
Ranks third in the rental yields ranking
  • City divided into five distance bands
  • Maximum distance travelled is 16.9 km
  • Rental yield is more than 3.5%
city
VADODARA
Ranks fourth in terms of rental yields
  • City divided into five distance bands
  • Maximum distance travelled is 18.8 km
  • The rental yield ranges from 3.3% to more than 3.5%
city
KOLKATA
Ranks fifth in the rental yields ranking
  • City divided into five distance bands
  • Maximum distance travelled is 36.7 km
  • The rental yield ranges from 3.0% to 3.5%
city
BENGULURU
Ranks the highest in terms of rental yields
  • City divided into five distance bands
  • Maximum distance travelled is 48 km
  • Rental yield ranges from 3.0% -5.0%
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HERE'S WHAT HOMEBUYERS HAVE TO SAY

Five homebuyers residing in the top five cities that command the highest rental yields share details about how much they spend on groceries, entertainment, transportation and on domestic help every month.

city
Anita Iyengar
Former retail professional
Bengaluru
Bengaluru
Property location : CV Raman Nagar
  • Amount invested
    Rs. 90 lakh for a 3BHK apartment
  • Rent per month
    Rs. 40,000
  • Distance from Central Business District
    9.8 km
  • Expenditure on Utilities
    Rs. 6500 per month
  • Cost of movie Tickets for two
    Rs. 250 per head
  • Cost of Transportation
    Taxi fare starts at Rs. 176
  • Metro Fare
    Rs. 22
  • Healthcare facitilities in the vicinity
    Yes
  • Number of parks
    9
  • Cycling track
    No
  • Education Institutes
    7
  • Safety Barometer
    7/10
  • Cost of house help/ drivers per month
    Rs 6000 + Rs 15,000 per month
  • Conducive for Senior citizens
    Yes
city
Himanshu Pandya
Businessman
Vadodara
Vadodara
Property location : Gotri Road
  • Amount invested
    Rs 1 crore for a 4 BHK apartment
  • Rent per month
    Rs 30,000
  • Distance from Central Business District
    12 km
  • Expenditure on Utilities
    Rs. 10,000 per month
  • Cost of movie Tickets for two
    Rs. 150 per head
  • Cost of Transportation
    Auto fare starts at Rs 40
  • Metro Fare
    Not planned yet
  • Healthcare facitilities in the vicinity
    Yes
  • Number of parks
    4
  • Cycling track
    No
  • Education Institutes
    8
  • Safety Barometer
    8/10
  • Cost of house help/ drivers per month
    Rs 8000 + Rs 12,000 per month
  • Conducive for Senior citizens
    Yes
city
Deepak Soni
Banking professional
Indore
Indore
Property location : Nipania
  • Amount invested
    Rs 24 lakh for a 2BHK apartment
  • Rent per month
    Rs 13,800
  • Distance from Central Business District
    7 km
  • Expenditure on Utilities
    Rs. 10,000 per month
  • Cost of movie Tickets for two
    Rs. 250 per head
  • Cost of Transportation
    Auto fare starts at Rs 40
  • Metro Fare
    Planning stage
  • Healthcare facitilities in the vicinity
    Yes
  • Number of parks
    4
  • Cycling track
    No
  • Education Institutes
    4
  • Safety Barometer
    9/10
  • Cost of house help/ drivers per month
    Rs 5000 + Rs 12,000 per month
  • Conducive for Senior citizens
    Yes
city
Tushar Ghosh
Healthcare professional
Kolkata
Kolkata
Property location : Naktala
  • Amount invested
    Rs 46 lakh for a 2 BHK
  • Rent per month
    Rs 14000
  • Distance from Central Business District
    10 km
  • Expenditure on Utilities
    Rs 2000- 5000 per month
  • Cost of movie Tickets for two
    Rs. 150 per head
  • Cost of Transportation
    Taxi fare starts at Rs 30 for first two kms
  • Metro Fare
    Rs 5 to Rs 25
  • Healthcare facitilities in the vicinity
    Yes
  • Number of parks
    3
  • Cycling track
    No
  • Education Institutes
    4
  • Safety Barometer
    9/10
  • Cost of house help/ drivers per month
    Rs 5000 + Rs 12,000 per month
  • Conducive for Senior citizens
    Yes
city
Nikunj Lehru
Businessman
Rajkot
Rajkot
Property location : Sardar Nagar
  • Amount invested
    Rs 45 lakh for a 2 BHK apartment
  • Rent per month
    Rs 20,000
  • Distance from Central Business District
    5-6 km
  • Expenditure on Utilities
    Rs 5,000- 10,000 per month
  • Cost of movie Tickets for two
    Rs. 150 per head
  • Cost of Transportation
    Auto fare starts at Rs 20
  • Metro Fare
    Not planned
  • Healthcare facitilities in the vicinity
    Yes
  • Number of parks
    5
  • Cycling track
    No
  • Education Institutes
    10
  • Safety Barometer
    9/10
  • Cost of house help/ drivers per month
    Rs 5000 + Rs 10,000 per month
  • Conducive for Senior citizens
    Yes

PLANNING TO RELOCATE TO A NEW CITY ? HERE'S WHAT YOU NEED TO LOOK AT

In times like these when you have the option to work from home, Indians are now open to simply pack their belongings and relocate to new cities in search of a new home or a place where rents are low. While the task of relocating to another city is exciting, it is also daunting. Here's what you need to assess before settling in a new place.

QUICK SHOTS DISCOVER THE TOP FIVE CITIES

Here’s why Bengaluru, Indore, Rajkot, Vadodara and Kolkata are steadiest performers in the Moneycontrol-Liases Foras House Purchase Affordability Index

  1. A total of 32 cities with 41,482 projects have been considered for the study
  2. The concept of this approach is an individual’s capacity to rent a home against the option of purchasing it
  3. Bengaluru : The centre of India’s high tech industry, the city also known for its nightlife and parks is the number 1
  4. Indore: Has claimed the title of India cleanest city for 4th year in the row is ranked second
  5. Vizag: Home to the oldest shipyard in all of India is at the bottom of our list and least affordable city in the 32 surveyed
  1. A total of 32 cities with 41,482 projects have been considered for the study
  2. The concept of this approach is an individual’s capacity to rent a home against the option of purchasing it.
  3. Bengaluru : The centre of India’s high tech industry, the city also known for its nightlife and parks is the number 1
  4. Indore: Has claimed the title of India cleanest city for 4th year in the row is ranked second
  5. Vizag, home to the oldest shipyard in all of India is at the bottom of our list and least affordable city in the 32 surveyed

WATCH HERE'S WHAT REAL ESTATE EXPERTS HAVE TO SAY

Where to rent or buy?

Choosing to buy or rent a house is an important decision. So is the city where you decide to settle in. Affordability is all about the cost of living, connectivity, ease of access as well as rental yields. Experts weigh in.

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