Rich investors book prime business space in search of rental yields

Economic Times | 3 Jul, 2012, 04.18AM IST, Shailesh Menon,ET Bureau

MUMBAI: Affluent investors are waking up to the idea of buying commercial real estate and renting it out to earn a fixed rate of interest. Stable demand for prime commercial space and high rentals are prompting them to include rental yields in their investment portfolios. According to wealth managers, rich investors are booking prime business spaces or buying out pre-leased commercial real estate to have a play on rental yields.

Several such deals - valued between 3 crore and 10 crore - are being consummated across important business districts in the four metros and tier-I cities. These investors hope to generate 8-15% annualised returns from their rental yields portfolios, wealth managers said.