New Delhi, Aug. 4 -- India's residential real estate market is increasingly offering investors a combination of strong capital appreciation alongside improving rental income that has traditionally been difficult to achieve. According to ANAROCK Research, home prices and rental yields have both risen across the country's top 11 housing markets between 2019 and the second quarter (Q2) of 2026, making residential property a more attractive investment proposition.

Typically, rising property prices tend to compress rental yields because rents do not increase at the same pace as capital values. However, the latest data suggests that India's major housing markets are bucking this trend, with rental growth keeping pace despite sharp increases in...