Home to some of Delhi's popular localities, such as Connaught Place, Karol Bagh, and Sunder Nagar, Central Delhi presents a competitive real estate market to invest in. Its central position close to major business districts and embassies makes it popular among high-net-worth (HNI) individuals and senior executives. This ensures a high rental income from properties in Central Delhi compared to other parts of the city.
Want to know the best locations in Central Delhi to generate high rental income? Read on to know them all.
Top five areas in Central Delhi to earn the highest rental income
Consider the areas mentioned below in Central Delhi to earn a substantial rental income.
Karol Bagh
Karol Bagh is a mix of residential and commercial areas, known for its shopping streets such as Gaffar Market, Tank Road (famous for garments) and Hardhyan Singh Road (famous for leather products).
Besides, the area houses numerous schools, hospitals and recreational areas, catering to the varied needs of the residents. Some of the popular ones are outlined in the table below.
| Schools | Hospitals | Marketplaces |
|---|---|---|
| Ramjas Higher Secondary School | Saraswati Memorial Hospital | Gaffar Market |
| Baghbani Public School | Jeewan Mala Hospital | Tank Road Market |
| New Arya Public School | Apollo Spectra Hospitals | Siddipura Market |
Proximity to such convenience has earned Karol Bagh a rating of 4.3 out of five on the 99acres Ratings and Reviews platform. Metro connectivity, proximity to New Delhi Railway Station, and a dedicated metro station add to its liveability aspect, making it a preferred choice among tenants and end-users. In fact, these factors have been highlighted by past and existing residents in their reviews of Karol Bagh.
Owing to its popularity and the presence of sound social amenities, property prices in Karol Bagh have surged by over 50 percent in the last five years. As of August 2024, the average apartment price in Karol Bagh is around Rs 20,000 per sq ft (source: 99acres). The price of a 3 BHK flat ranges between Rs 3 crore and Rs 4 crore and fetch a monthly rental close to Rs 35,000.
To explore properties in Karol Bagh, Delhi, click here.
Old Rajinder Nagar
Old Rajinder Nagar is surrounded by numerous schools, colleges, and coaching centres for competitive examinations, leading to constant rental demand from the students in the area. Its proximity to well-known hospitals such as BL Kapoor, Ganga Ram, and Apollo Spectra hospitals (within a three-km radius) makes it a preferred residential spot for families.
The area has received a 4.2 rating out of five on the 99acres Ratings and Reviews Platform. Residents’ reviews of Old Rajinder Nagar have praised its seamless metro connectivity, easy availability of public transport, good road conditions, and proximity to markets.
Additionally, its proximity to several employment zones makes it a preferred choice for working professionals. Some of the nearby commercial hubs include:
- Moti Nagar Industrial Area (7 km)
- Connaught Place (5 km)
- Karol Bagh Market (a km)
- Kirti Nagar Industrial Area (6 km)
- Sadar Bazaar (5 km)
- Paharganj (4 km)
When it comes to property options, Old Rajinder Nagar is dominated by builder floors, which start from Rs 1.3 crore to Rs 2 crore. The average rent of a builder floor hovers between Rs 15,000 and Rs 55,000 per month.
To check out properties in Old Rajinder Nagar, Delhi, click here.
New Rajendra Nagar
Proximity to schools, such as JD Tytler, Manav Sthali, and DI Khan schools, makes New Rajendra Nagar a preferred housing spot among families. It is also close to Old Rajendra Nagar, a hub for competitive exam coaching centres, further driving the demand for paying guests (PG) and rental accommodation here.
In fact, in reviews about New Rajendra Nagar, residents have cited good road conditions, proximity to the metro station, and closeness to the marketplaces as positives.
New Rajendra Nagar is conveniently located close to prime employment hubs, including Connaught Place (five km), Rajendra Palace and Moti Nagar. Also, owing to the easy metro access, the region enjoys seamless connectivity to the commercial hubs in Noida and West Delhi, making it a popular residential choice among working professionals as well.
The locale offers ample upscale independent floors and houses by city-based developers. With an average monthly rent of about Rs 31,000 to Rs 85,000, a 3 BHK builder floor price in New Rajendra Nagar ranges between Rs 1.8 crore and Rs 2.5 crore.
To discover properties in New Rajendra Nagar, Delhi, click here.
Connaught Place
Known for its commercial establishments, Connaught Place needs no introduction. Its proximity to numerous employment zones across Barakhambha Road, Kasturba Gandhi Road, Janpath, and more drives the demand for property from end-users and tenants alike.
On the 99acres Ratings and Reviews platform, the locality has received an impressive 4.4 out of five rating. Most reviews about Connaught Place highlight its upbeat markets, office spaces, restaurants, and safety.
The area's centralised location provides easy connectivity to parts of Lutyens’ Delhi and beyond. This includes:
- Khan Market (5 km)
- Chanakyapuri (7 km)
- Indira Gandhi International Airport (12 km)
- Lajpat Nagar (11 km)
- CGO Complex (7 km)
Dominated by independent houses, with prices starting from Rs 9.9 crore. Before we explore what social amenities you may find here, let's look at the rental income prospects of Connaught Place:
| Expected property rent in Connaught Place, Delhi | |
|---|---|
| Property type | Minimum rent |
| 2 BHK builder floor | Rs 30,000 per month |
| 3 BHK builder floor | Rs 1.8 lakh per month |
Disclaimer: The above details are based on the listings posted on 99acres in July 2024.
To check out properties in Connaught Place, Delhi, click here.
Sunder Nagar
Sunder Nagar is among the premium housing locales in Delhi, offering primarily independent houses. The price for such property starts at Rs 95 crore, and its monthly rental hovers around Rs 7.5 lakh. This presents a lucrative opportunity for an investor to capitalise on their investments.
The locality is close to several industrial areas across Central Delhi and popular landmarks like the Delhi Golf Club, Indian Habitat Centre, Humayun’s Tomb and CGO Complex. It also offers easy access to social amenities that offer an upscale lifestyle to its residents.
Some of the popular schools, hospitals and marketplaces in proximity to Sunder Nagar include:
| Schools | Hospitals | Marketplaces |
|---|---|---|
| Delhi Public School | Batra Hospital | Lajpat Nagar Market |
| New Horizon School | Kothari Hospital | Khan Market |
| Jormal Periwal Memorial School | Moolchand Hospital | Jangpura Market |
The benefits of its strategic location are also cited in the reviews about Sunder Nagar. On the 99acres Ratings and Reviews platform, Sunder Nagar has received a rating of four out of five. These combined factors make Sunder Nagar a highly desired area among property investors and tenants.
To explore properties in Sunder Nagar, Delhi, click here.
Owing to its status as a premium location and strategic and robust connectivity across Delhi NCR, Central Delhi ensures steady rental demand. This makes the locale attractive for real estate investors looking to maximise returns through rental income. However, before diving into the final decision, it is crucial to thoroughly do proper research about the market and seek advice from a real estate expert if required.
