North Bengaluru is ahead of eastern IT corridor of Whitefield in terms of rental yield, as per ANAROCK.
4.48%
Rental yield in North Bengaluru was 4.48 percent in the third quarter of this calendar year, up from 3.38 percent four years earlier.
What is rental yield?
Rental yield is income generated by a rented property relative to its purchase value.
Other areas
In Whitefield, rental yield stands at 4.41 percent, while back in 2019, it was 3.7 percent.Thannisandra Main Road in the north commands a higher rental. In Indiranagar and Koramangala, the rental yield is lower at 3.4 percent and 3.37 percent
Reason
North Bengaluru, according to brokers, commands a higher rental yield because real estate in the area is fairly new and booming.
Factors
Infrastructural failures close to the eastern IT corridor such as waterlogging and severe traffic snarls have impacted real estate prices in some areas
Whitefield, Sarjapur
Rentals in Whitefield and Sarjapur Road grew 31 percent and 27 percent, over the past nine months of 2023 for a standard, 1,000 square foot two-bedroom apartment.
IT proximity
Sarjapur Road and Whitefield have an edge over North Bengaluru in terms of rental growth because they are strategically located close to the city’s major IT parks
Rates
Rent for a 2-bedroom flat near eastern IT corridor of Whitefield can touch Rs 40,000-50,000 per month, while for a 3-bedroom apartment, it could be Rs 60,000-70,000 per month.
Appreciation
There has been a 30-40% rental appreciation in most projects in the east, while in some gated communities, rentals have spiked by as much as 50%.