Bangalore: Top 5 Areas that fetch healthy rental returns
Bangalore is renowned for being a residential destination that provides healthy rental returns for investors. Similar to the residential sale market that has been booming in the city, the rental market has also seen considerable appreciation in rental values across all major rental markets. As a result, investors in rental property, irrespective of the BHK configuration or the sq. ft. area, have made healthy returns especially in few lucrative micro markets across the city. These include the IT hubs or areas with considerable infrastructure facilities and easy connectivity. As per data with CommonFloor, the top five localities that can fetch high rental returns are Koramangala, Sarjapur Road, Electronic city, Whitefield and HSR Layout.
Koramangala
Koramangala is located about 8 km south-east of the heart of the city via Hosur Road. It has developed by leaps and bounds in the last 10 years, into a prominent residential cum commercial hub. Besides IT companies, Koramangala houses many other important infrastructure facilities like Forum Mall and St John’s hospital. There are also many reputed educational institutions here. The area is divided into 8 blocks with different types of rental property available here. Based on CommonFloor data, the collective rental yield for property here is between 3.5 – 4.5 per cent per cent which is the highest in Bangalore. This includes apartments, individual houses, builder floors and villas.
Sarjapur Road
Sarjapur Road starts from about 15 km away from the heart of the city via Hosur Road. It stretches from St John’s Hospital in Koramangala to Sarjapur, measuring about 21 km. It traverses through many important residential areas like Koramangala, HSR Layout, Agara and Bellandur, flanked by many prestigious residential projects. Wipro’s corporate office is an important landmark along this stretch. The collective rental yield for property here is anywhere between 3.5 – 4.5 per cent. This includes apartments, row houses and villas.
Electronic City
Electronic City is located about 20 km south of the heart of the city via Hosur Road. It is one of the most lucrative rental destinations in the city due to being a premier IT/ITES hub in Bangalore. Among different types of rental residential property, apartments provide the highest rental yield for investors. The collective rental yield for rental property here is 4.22 per cent. This includes apartments and builder floors. Apartments have the highest rental yield here with 4.7 per cent.
Whitefield
Whitefield is located about 19 km east of the heart of the city via HAL Airport Road. Like Electronic City, Whitefield also is a renowned IT hub in Bangalore and is located adjacent to ITPL. Besides, it is located in the vicinity of many other important residential areas like Marathahalli, Brookefield, Kundalahalli, Mahadevapura and KR Puram. The collective rental yield for rental property here is 4.06 per cent. This includes apartments, builder floors, row houses and villas. Villas have the highest rental yield here with 4.18 per cent.
HSR Layout
HSR Layout is located about 12 km south-east of the heart of the city via Hosur Road. Predominantly a quiet residential area, it is divided into seven sectors with well-planned out residential layouts. Due to its proximity to Koramangala, it has developed commercially as well in recent times. The collective rental yield for rental property here is 4.04 per cent, most of which are apartments.
