India

Prices of apartments in Mumbai continue to rise, astoundingly. Prices of US$17,000 per square metre (sq. m.) are typical for 300 square metre luxury used apartments in Mumbai’s prime areas. Smaller apartment sized sell for around US$11,600 to US$14,000 per sq. m..

Rents in Mumbai have not kept pace, and as a result rental yields on apartments have slipped to 2.5% to 2.8%. At this level, few landlords can make money, once costs are stripped out. Given that the Global Property Guide’s figures are for gross rental yields, i.e., do not make any allowance for vacant periods, for legal costs, administration costs, cleaning and repairs, rental taxes, property taxes, and other taxes, etc, it is safe to say that landlords in Mumbai earn very little on their apartments.

Property prices in New Delhi have continued to rise this year. They are moving toward the US$4,000 per square metre range for used apartments in prime areas.

In Bangalore prices continue to be very reasonable, at around US$1,000 to US$1,300 per sq. m. for a used apartment in a prime district. Rents also continue to be low, so that gross rental yields of around 3.5% to 4.2% can be earned.

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