Rental Trends: How Much Can You Earn from Flats in Calicut?

One of the smartest real estate investment strategies in Calicut you can have is letting homes out on rent, especially flats. Calicut today has a significant floating population as it is an important centre of trade and commerce, and is now also becoming one of the biggest IT hubs of Kerala. This leads to an influx of professionals and entrepreneurs  to the city, seeking their fortunes; and they will all need housing. 

There will always be a reasonably high demand for rental flats in Calicut for this very reason. Now how much rent can you charge? How much can you expect to earn? 

Factors Influencing Rental Trends

Before we try to calculate how much you can earn, it is important to know what factors impact the rental income. 

Location

Where real estate is concerned, location is one of the most important factors to consider while investing in real estate. There are two types of locations that are popular: one, right in the middle of town, close to major offices, bus stands, railway stations and so on, and second, in the suburbs, where it’s green and tranquil. Some prefer the first, especially those whose offices are located in the area, so that they can reduce commute, and some prefer the peace of the suburbs. They could be business owners or retired people, or those who have their place of work in those areas.

But there are some things that both categories of homeowners want: proximity to stores or markets that sell daily needs like groceries, household items, dairy, and so on; access to public transport and/or main roads; proximity to healthcare services and schools. 

Any apartment that is in such a location will typically command more rent. Most popular locations in Calicut include Mavoor Road, Beach area, Eranhipalam, Nadakkave, YMCA Road, Vellayil, etc.

Type of Neighbourhood

A well-maintained, clean, and safe residential neighbourhood with little or no crime is always preferred, especially by families. Green spaces, presence of recreational facilities, playgrounds, and family-friendly entertainment centres, cafés and restaurants are added bonuses. Areas where garbage is seen dumped on the streets or have slums in the vicinity are not preferred, and any apartments in such areas will not earn high rents.

Obviously, what rent you can charge depends on the flat size, as rent is usually calculated per square foot. You can charge the highest rent for a 4 BHK flat; a 2 BHK flat would be the least, and for a 3 BHK you can get something between the two. The rental trends will always reflect the size of the house. Again, which floor the apartment is on may also impact the rent amount. In many buildings, apartments on higher floors attract more rent as they offer beautiful views of the city, the beach, or surrounding greenery.

Market Trends

The general market trends will also impact the rental trends; when the economy is doing well, there is more money in the system, and people have more disposable income, rents are also likely to be high. The reverse can also happen when the market is down. Ups and downs are a given and you must be prepared to face the challenges of the market fluctuations.

Condition of the Flat

Apart from the size of the flat, how well maintained it is can also have a significant impact on the rent you can charge. When it is well maintained, painted, no cracks or seepage, no leaks, and so on, you can definitely charge your tenants a higher amount than for an ill-maintained flat.

If you rent out your apartment fully furnished, you can include the cost of renting all of the appliances and furniture in the rent, which means you can get a significantly higher amount of rent from the tenant. Today, many flats are available where you just have to move in with your personal belongings. Appliances like fridge, cooking stove, washing machine, air conditioners; furniture like sofa set, beds, dining table, wardrobes, and kitchen cabinets, are all provided by the homeowner.

Amenities

Flats with desirable amenities like swimming pool, gym, kids’ play area, party hall, landscaped gardens, power backup, clubhouse, and others, will be always in high demand, and command higher rent than ordinary flats which don’t include them. Premium plumbing and electrical fixtures are also considered. The more the amenities, the better, as far as charging rent is concerned.

Security

Security is a high priority for families; any apartment with round-the-clock security and CCTV surveillance, security grills, intercom between security cabin and the flats etc., will earn higher rents. Other desirable security features are biometric access for residents, restricting visitor entry by proper screening, issuing passes to tradesmen and delivery people, electronic barriers with fob access for vehicles, and so on. The better the security, the higher the rent that you can charge.

Aesthetics

An apartment building that looks stunning and features great layouts, a grand reception area and lobbies etc. are likely to earn higher rents than a plain-faced one. High quality construction, putty and top quality exterior and interior paints are also factors that can impact rental yields.

Builder Reputation

This is very important as well. The main reason why certain flats seem to be more expensive when you try to purchase or rent them is because the builder has a great reputation for quality, transparency, and service. Many people consider it a prestige to reside in these flats, and hence are willing to pay more to rent them. You can check online reviews or talk to those already living in those flats to know about the builder.

What Amount Can You Expect to Make?

Based on the above factors, the rental income you can make from flats in Calicut range from 10,000 to 50,000 for 2 and 3 BHK apartments. For 4 BHK flats and penthouses, you may be able to charge even up to one lakh rupees, depending on the factors discussed. On an average, we can estimate a range of 20 to 30 thousand per month.

Conclusion

If you’re looking for the right properties for investing in Calicut, look no further than PVS Builders. Everything that we talked about can be found in our flats, and then some. We are sure you will be happy with your decision.