A wise decision always pays you better, and Pune is in the mood to bring investors higher rent than Mumbai, according to experts.
A wise decision always pays you better, and Pune is in the mood to bring investors higher rent than Mumbai, according to experts.u00a0u00a0u00a0
Mohammed Aslam, city head of international property consultancy firm Jones Lang LaSalle Meghraj, said, "With the same capital investment, you will get higher rents in Pune as compared to Mumbai's residential market."
Added Aslam, "Capital appreciation in Mumbai is higher, but Pune beats Mumbai in terms ofu00a0 rent offered. One would only get a rent of around three per cent of the capital investment per annum in Mumbai, while the city promises 5-7 per cent."
Pune-based Rohit Gupta, who works in an investment firm, recently purchased a one- BHK flat in Lokhandwala for Rs 1.3 crore for which he gets a rent of Rs 35,000 per month. He has also bought two flats in Koregaon Park for a crore, which get him a rent of Rs 25,000 each. With the city real estate paying good, Gupta has already booked two more flats in Wanorie for Rs 34 lakh each and expects Rs 40,000 rent by next year. "I will give both the flats on rent, which I am sure will be astronomical," he added.
Harish Talereja, a real estate consultant, said that Mumbai properties do not fetch a rent of more than five per cent of the capital investment per annum. "If we compare a property worth Rs 5 crore on Warden Road, one can expect a rent of Rs 30,000 which comes to around three per cent. But Pune has an edge over Mumbai," Talereja said.
A three-BHK flat in Aundh for Rs 90 lakh would fetch Rs 40,000 rent, which is a good sum when compared to a
2 BHK in Andheri (E) for the same amount, where the rent is around Rs 20,000.
Experts, however, warn that appreciation is still higher in Mumbai. Iali Hiuda, a real estate consultant and developer of Classik Estate in Mumbai and Pune, explained, "A flat worth Rs 50 lakh in Mumbai will fetch you Rs 13,000 as rent, while and you can own two flats in Pune and draw a rent of Rs 20,000 from each by investing the same amount."
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