What is the Commercial Rental Yield in Bangalore?

Hey Rishikesh. The commercial rental yield in Bangalore ranges from 7 percent to 10 percent on average. Now, when it comes to rental yield for commercial properties, a lot of factors have to be considered. If you see the trend right now, commercial properties which have high quality construction with premium amenities and all in a premium locality earn the highest rental yield. 

If you are looking to invest in a commercial property to earn rental yield in Bangalore, here is what I would tell you to focus on:

1. Tenant Type: When you look for a property, consider the kind of tenant it will attract. Commercial properties attract a variety of tenants, based on the property area, features and location. These include tech companies, education institutions and more. See your budget and which kind of tenant will be the best to earn the maximum rental yield.

2. Location: This is like one of the most important areas. If you have a lot of funds to invest, you can go with a premium location. However, if you are on a budget, eye locations that are under development with proof of future development. These locations are set to rise in demand in the future.

I hope this helps.

Earn High Rental Yield from Your Property in Bangalore Via NoBroker!

The rental yield is an important consideration that is applied to the computation of profit derived from various commercial real estate asset types. You must be thinking about what is the commercial rental yield in Bangalore. Embassy Tech Square, where I have invested, has a 15.9% rental yield. However, it varies on several factors, including type, location, operating expenses, length of lease, and so forth.

What is the Highest Commercial Rental Yield in Bangalore?

Buying your first house is a significant life milestone and a dream come true. But why stop there? It makes sense to invest in commercial real estate especially in the prime location in Bangalore since you can expect high rental returns. As per my knowledge, the highest rental yield for commercial property is in Whitefield Tech Park which offers 19.4%.

You can calculate the commercial rental yield value by dividing the annual rental revenue generated by the property by the entire purchase price. The resulting percentage is then multiplied by 100. 

Factors Influencing Rental Yield of Commercial Property in Bangalore

• Location -

  Better rental yields can be achieved by properties located in highly sought-after areas like Whitefield, Electronic City, and Koramangala, where higher rental rates are typically demanded.

• Property Type and Size -

  The rental yields of various commercial property types, such as office buildings, retail stores, and warehouses, might differ. Larger or more uniquely designed properties also command higher rental prices.

• Lease Terms -

  Higher yields can also be attributed to favourable lease escalation clauses that permit periodic rent increments.

• Operating Cost -

  The rental yield may be impacted by the running costs of managing the property, including insurance, utilities, property taxes, and maintenance fees. If you have high operational expenses, the rental yield will increase.

• Property Situation -

  High quality renters are typically attracted to well-maintained homes with contemporary amenities and infrastructure. This results in improved rental yields.

• Financing Costs -

  The net rental yield will be lower if your property is funded with a commercial loan with higher borrowing expenses.

• Embassy Tech Square, Outer Ring Road

• Prestige Tech Cloud Park

• Prestige Trade Tower

• Whitefield Tech Park

• The Pavilion III, Outer Ring Road

To obtain a greater rental yield, I would advise you to select a commercial property that is well-located, in high demand, and has long-term lease agreements. I hope you get an idea of how to calculate Commercial rental yield in Bangalore today.

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