Why Service Apartments are better than Hotels in Times of Coronavirus

Even as the rental market grew steadily across major cities, rental yield (the annual rate of return an investor can earn from his capital invested in a property) has long since stagnated to a national average of 3%.

However, the lower the property cost, the higher is the rental yield. Therefore, investing in affordable or mid-segment properties will yield better rental returns (depending on external factors like location, project type, developer‘s brand, etc.)

For the same reason, luxury and super-luxury homes are not at all rewarding from a rental yield point of view.

Despite the relatively low rental yields, residential property investors increasingly prefer to earn a steady rental income instead of selling the property (after appropriate appreciation).

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