India Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

13.3x

Ratio of property prices to annual income

Rental Yield

2.7%

Average annual rental return

Price to Rent

36.9

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Additional Insights

Expert analysis of India Real Estate trends and investment implications

Market Overview

India's property market is currently characterized by a high price-to-income ratio of 13.3, indicating potential affordability issues and an overheated market. Rental yields at 2.7% are relatively low, suggesting limited attractiveness for income-focused investors, especially when compared to prevailing interest rates. The price-to-rent ratio of 36.9 suggests that renting is more economically viable than buying at this stage. The market appears to be at a peak or potentially entering a declining phase, given historical trends and current metrics.

Key Findings

Data-driven insights

•Price-to-income ratio at 13.3 indicates limited affordability and potential overheating.
•Gross rental yield and rental yield both stand at 2.7%, low for investor attraction.
•Price-to-rent ratio is 36.9, suggesting that renting is more economical than buying.
•Average price per square meter is 886.49 USD, reflecting high property prices.

Market Trends

Historical patterns

•Historical data shows a consistent increase in property prices, with recent years showing signs of slowing growth.
•Rental yields have gradually decreased over decades, reflecting a tighter rental market.
•Price-to-income ratio has been rising steadily, indicating growing affordability challenges.

For Investors

Actionable takeaways

•Potential investors should consider waiting for a market correction before buying to achieve better value.
•Current low rental yields suggest focusing on capital gains rather than income for property investments.
•Investors should target properties in emerging areas with potential for future infrastructure development to maximize returns.
•Given the economic viability of renting, investors should be cautious about buying unless for long-term holding.

Market Context

India's property market is maturing, with significant development in urban areas but facing challenges such as affordability and low rental yields. The market's current phase suggests caution, particularly for short-term investments, as it may be approaching or at a peak stage.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.