Capital values outpace rental growth: Report

MUMBAI: Even as property prices continued to rise at a faster pace - 2.2 % in the Dec quarter, rental demand declined by 2.4% quarter-on-quarter across India, indicating a market adjusting to yield compression rather than a broad-based slowdown, Magicbricks said in a report. Chennai emerged as the top market in terms of gross rental yields at 4.16%, followed by Ahmedabad at 3.98% and Hyderabad at 3.93%. Bengaluru and Kolkata reported similar yield levels at 3.88% each. "A key structural takeaway is the sustained outpacing of rental growth by capital value appreciation across cities, resulting in visible yield compression," analysts at the firm said.