Actor Kartik Aaryan rakes in ₹4.5 lakh rent from Mumbai home: Which city leads in rental yields?

Bollywood actor Kartik Aaryan reportedly secured a lucrative lease agreement for his plush Juhu apartment, earning Rs 4.5 lakh per month. 

The deal, according to a transaction reviewed by Square Yards, underscores the steady demand for premium properties in Mumbai's elite neighborhoods. 

The apartment, located in the Siddhi Vinayak Presidency Co-operative Housing, spans 1,912 square feet and was purchased by Aaryan and his mother for Rs 17.5 crore in June 2023. 

The rental yield on this property stands at 3.1%, reflecting broader trends in Mumbai’s high-end real estate market. 

Business Today could not independently verify the details of the transaction.

Mumbai's rental market, especially in sought-after areas such as Juhu, has shown resilience, with rental yields climbing to 4.15% in the first quarter of 2024, up from 3.5% in 2019. 

This 19% increase in yields marks a significant recovery post-pandemic, driven by a surge in demand as the city’s commercial and entertainment hubs regain momentum. The city's strategic importance as a business and cultural center continues to drive demand, pushing rental values upward.

In comparison, Bengaluru, often dubbed India's Silicon Valley, leads the country in rental yields, boasting a 4.45% yield in Q1 2024. This represents a substantial 24% increase from the pre-pandemic levels of 3.6% in 2019. 

Key areas such as Sarjapur Road and Whitefield have seen average rent hikes of 8% between the last quarter of 2023 and the first quarter of 2024, with some localities experiencing a staggering 40% increase since 2022. The tech-driven city’s strong post-pandemic rental demand has made it the most lucrative market for landlords in India.

Other major cities are also experiencing a surge in rental yields. Gurugram, for instance, has seen yields rise to 4.1%, up from 3.5% in 2019. Pune, Noida, Delhi, Navi Mumbai, and Thane have all reported improvements, driven by the increasing demand for rental properties as work-from-office trends return.

In Pune, the rental market has been buoyed by the IT sector's growth, with rental yields approaching 4%, while Noida's Sector 150 and Delhi’s Dwarka have witnessed rent increases of 9% and 6%, respectively. Mumbai’s own suburbs, such as Chembur and Mulund, have seen 4% growth in rental rates, reflecting the broader citywide trend.

This nationwide uptick in rental yields points to a robust recovery in India’s real estate market, particularly in urban centers where the return to normalcy post-pandemic has driven up demand for rental properties. The trend is expected to continue, with experts predicting further increases in rental values in the coming quarters, especially in cities like Bengaluru, which remains the frontrunner in both rental yields and rental value growth.