North Bangalore Exhibited higher Rental Growth than Easter IT Corridor

According to Property Consultant Anarock, North Bangalore has won over and moved ahead of Eastern IT Corridor of Whitefield and the prime areas in terms of rental yield. The rental growth has been recorded at 4.48 percent in the third quarter of this calendar year, four years earlier which was 3.38 percent.

The report further says the rental yield presently stands at 4.41 percent, which was 3.7 percent in 2019. Surprisingly, Thannisandra Main Road in the north showed a higher rental. In prime locations of Bangalore such as Indiranagar and Koramangala have mixed demand of IT and other sectors, the rental yield is lower at 3.4 percent and 3.37 percent, respectively.  

After witnessing the market around, expert Ashish Sharma, city head, Bengaluru, ANAROCK Group explained that capital values in these two areas are fairly higher than in the prominent IT hubs, while the difference in rentals is not as much.

According to the local brokers, the prime reason of increasing rental growth in North Bangalore commands a higher rental yield is because real estate in the area is fairly new and booming. On top of that, infrastructural failures close to the eastern IT corridor such as waterlogging and severe traffic snarls have impacted real estate prices in some areas.

Vice president of Hanu Reddy Realty, Kiran Kumar said, "Certain pockets in the east that see constant flood every few months, the project prices in those areas have appreciated slowly or are rather stagnant."

Reports revealed that, Sarjapur Road and Whitefield have an edge over North Bengalore in terms of rental growth because they are strategically located close to the city’s major IT parks, be it the IT-belt along the Outer Ring Road, Whitefield itself, or even Electronic City further south. Rent for a two-bedroom flat near the eastern IT corridor of Whitefield can touch Rs. 40,000-50,000 per month in a prime location, while for a three-bedroom apartment, it could be Rs. 60,000-70,000 per month. In the eastern side total growth witnessed was 30-40 percent, but in some renowned gated communities the growth is nearly 50 percent.