Introduction
Proximity to the office has traditionally been one of the key factors governing the rental market. Hence, areas like Whitefield, Sarjapur Road, and Electronics City are always favorites for young IT workers in Bangalore. However, a recent trend indicates a change in this dynamic. Areas that are slightly away from employment centers, but boast of sound connectivity, especially North Bengaluru.
North Bengaluru, Which Has Seen Significant Development,
Bangalore North is an area that includes areas like Yalahanka, Hebbal, Jakkur, and Thanisandra Main Road and has seen significant progress in real estate activity in recent times. The area has seen significant development in recent years with the construction of new flyovers, underpasses, and metro stations.
North and East, Bengaluru rental yields were 3.38 and 3.7 percent, respectively, in Q3 2018; in Q3 2023, it was 4.48 and 4.41 percent, respectively, according to data released by Meraki Advisors Pvt. Ltd.
Moreover, the international airport, along with various IT parks, has further boosted demand from a rental and purchase perspective. Many companies in Bangalore still operate in a hybrid-work model, which has also contributed to the rise in demand, informed Ashish Sharma, Bangalore City Head, Anarac Group.
According to the Anarock Research
Anarock Research’s data also pegs the rental yield at 4.5 percent by Q3 2023-end if we look at the city’s key IT hubs, such as Sarjapur Road (located in the eastern region). The same is true at the same time. In 2019, it was 3.65 percent. Similarly, in Whitefield (which is in the eastern region), the rental yield is currently 4.41 percent. In 2019, it was 3.7 percent.
Thanisandra Main Road is currently offering a rental yield of 4.48 percent, up from 3.38 percent in 2019. “However, in areas like Indiranagar and Koramangala with mixed demand for IT and other sectors, the rental yields are lower at 3.4 percent and 3.37 percent. The main reason is high capital values. Hence, we can see that rental yields in northern regions are at par with or higher than many leading eastern regions,” said Sharma.
Popular Areas in North Bangalore
Hebbal, Nagawara, Yelahanka, and Hennur are popular rental markets in North Bengaluru. “In Hebbal, Nagawara, and Yelahanka, the percentage increase in rental values has been more than 50 percent in the last five years. The announcement of the Metro blue line has also led to an escalation of rental values,” said Jhunjhunwala.
North Bengaluru is emerging as one of the leading rental markets in the city. Among the many rental hotspots in the region, Hebbal, Nagawara, Yalahanka, and Hennur are the most prominent. These areas offer a good mix of residential and commercial space with excellent infrastructure and proximity to major employment centers.
According to experts, rental values in Hebbal, Nagawara, and Yalahanka have increased significantly in the last five years. Especially in these areas, rental values have increased by more than 50 percent. This upward trend is mainly due to infrastructural development such as the Metro Blue Line, which has increased connectivity and accessibility to these areas. As a result, more and more people are looking to rent properties in these areas.
Conclusion
North Bengaluru, especially Hebbal, Nagawara, and Yalahanka offer lucrative opportunities for renters and investors. With proper guidance and market knowledge, one can make the most of these rental markets and reap the benefits. So, your investment search will be more extensive. Then use our Openplot website.
Also read: Bangalore Real Estate: Top 5 Developers in Bangalore in 2024