It seems that it is the best time to be a landlord in Bangalore. With property prices appreciating and the IT sector booming, the time is right for investors to earn a few quick bucks by renting out their flats in Bangalore. According to recent reports, Bangalore tops the list for high rental yields. Residential pockets across the city have seen rental yields as high as 5.15 percent in the first quarter of this year. Stable capital values and an increase in capital appreciation are the factors that are driving higher rental returns. Towns like Koramangala, Marathahalli and HSR Layout are three neighborhoods that produce the highest yields. Excellent connectivity and strategic locations help these locations top the list.
Koramangala
Being one of the most premium localities in South Bangalore, Koramangala is in high demand for rented housing due to the established IT sector. A series of multi-story buildings have sprung up here and because the neighborhood is considered an IT hub, the area attracts a large number of floating population. Koramangala is a great favorite among professionals working in Sarjapur and investors leave no stone unturned in providing them with a variety of homes. A 2BHK flat in Bangalore, especially in areas like Koramangala, could easily earn rent returns of Rs 23-28 depending on the amenities on offer. The locality’s easy connectivity to other parts of the city via Banerghatta Road, MG Road, Sarjapur Road, Outer Ring Road and Intermediate Ring Road is helping the prevailing prices soar.
HSR design
Investing in property in Bangalore seems to be an ideal option for investors and if you are looking to buy a house that is relatively high in price but generates high rents, then HSR Layout is the place for you. With Kormangala attracting the premium crowd due to its great connectivity and organized commercial property, HSR Layout is developing at a high speed and the neighborhood has a good number of premium projects which are relatively lower in price and which attract many investors. The town’s proximity to Marathahalli and Electronic city helps attract the working class to rent space at HSR Layout. While properties in Bangalore have been revamped, the locality is also adapting to create many multi-story apartments. Dominated by a series of individual houses, a 3BHK villa for sale here could range from Rs 17-22 per sqft, but you’ll need to net just Rs 3100-6600 per sqft to own a home here.
marathahalli
A house below 50 lakhs here is capable of generating a rent between Rs 15-22 per square foot. The locality benefits the investor due to its high returns and as Marathahalli is one of the top performing localities in terms of infrastructure, the locality is considered as an investor market. Some of the factors driving the high rents here are the neighborhood’s proximity to the ORR (Outer Ring Road). And as Marathahalli is close to an IT hub like Whitefield, there is a high demand for IT professionals. In addition to the schools and colleges that dominate the commercial space, the information parks occupy land in large parcels. Marathahalli’s connectivity with other parts of the city is also helping the real estate scene here to flourish. The locality is about 28 km from the international airport, KR Puram railway station is only 10 km from Marathahalli.