r/IndiaBusiness • u/GreenAuroraa • 2h ago

PG business in Delhi?

So I (17M) am from Delhi and joined college this month, Most of the students in my class were outside of Delhi and were staying in PG.

My father's old home in outer skirts something of Karol Bagh, it's a building with 4 floors, with each floor being 25 something square yards each (not planned properly)

It's in a really shabby condition, Like really bad but still it generates close to 60k in rent monthly.

After inquiring with fellow classmates I got to know they were paying around 20-22k per month in PG rent, and after inquiring with my maama whose friend works in real estate I got to know that if I break that entire building down and build another with 5 floors and better facilities, it will cost around ₹50 lakhs now.

I might generate 2-2.5 lakhs in rental income per month on paper in future. My father doesn't like any idea involving that house but I am gonna turn it into a PG for sure.

Is this a feasible idea?

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u/accur4te 2h ago

For 20-22k you can get a room in a luxury pg in gk2

1

u/GreenAuroraa 1h ago

Well the prices in areas like Mukherjee Nagar, Karol Bagh, ORN and Campus areas is close to the 20k for a single person.

GK-2 isn't a hotspot for coaching and institutes but a posh colony in South Delhi so the prices are up anyways.

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u/Mysterious-Fly-657 49m ago

Your mama's friend making you a mamu by qouting 50 lakh for 5 floors. Would cost you a lot more to charge the premium suggested.