Top Areas In Bangalore With High Rental Demand

Quite recently, Bangalore has been classified as the top property market in the country. With expanding employment opportunities in the city, the demand for rental property in Bangalore is on a constant high.

There are several pockets where flats for rent in Bangalore are much in demand. The top three localities of Bangalore where house seekers want to rent are:

• Bellandur
• HSR Layout
• Koramangala

These areas enjoy good connectivity with the rest of the city. HSR Layout and Koramangala are BDA layouts which lie en-route to areas CBD regions such as Electronics City, Richmond Road and MG Road. The localities are along the routes to Bellandur and Marathahalli as well. They have ample green spaces, shopping and entertainment zones to keep residents gratified.

The highest rental values for flats for rent in Bangalore were charged in Bellandur and Koramangala. For a middle segment apartment in Koramangala, one has to pay anything between Rs 21,000 and 27,000 in a month. On the other hand, Bellandur has a rental rate of Rs 17,000 to 21,500 in a month.

In contrast with HSR Layout, Bellandur and Koramangala, there are several micro-markets in Bangalore which offer similar kinds of infrastructure without being heavy on the pocket. Some of the areas where there are affordable flats for rent in Bangalore are Marathahalli, Sarjapur Road, Electronics City, Whitefield and Bannerghatta Road.  

The rental values in Whitefield hover between Rs 15,000 and 18,000 in a month while in Bannerghatta Road, they range from Rs 13,500 to 17,500 per month. Albeit towards the outskirts, but Electronics City has the most affordable rental rate yet. For a 2BHK apartment, the rent charged is around Rs 12,000. For larger 2 and 3BHK flats for rent in Electronics City, the ongoing rate in Rs 16,000 or so. The size of these apartments is 1100 to 1200 sq. ft.

Rental market in Electronics City is mostly characterised by the IT populace who want to walk to work. The rental market is on the lower side despite being well-connected to the CBD is that the area lacks green cover and has undergone disproportionate development.

As an investor, investing along Sarjapur Road or Marathahalli will yield much as the areas have reported good returns on investment recently. These markets do not display any kind of volatility like the markets in North Bangalore and neither are they sluggish like the southern ones.

A 2BHK apartment in Marathahalli is priced at Rs 40 lakhs, and the rent generated by it would be around Rs 17,500. Hence, an investor stands to make close to Rs 2 lakhs in a year from the rental property. For a similar apartment in Sarjapur, the rental returns per month is Rs 17,750, which cumulates to a little over Rs 2 lakhs per annum, taking into account rental rate revisions. Electronics City is also a credible proposition for investment, especially if the investor works in the area. The returns may not sound much on paper, but compared to the lower amount invested, the ROI is quite competitive.