Why Rental Yield Matters
Rental yield is a measure of your investment’s income: the annual rent collected as a percentage of the property’s cost. In Indian metros, average yields hover around 4–5%, but Kolkata outshines others at a 6.3% average. Naturally, smart investors track where yields are highest—and North Kolkata offers several hotspots worth noting.
1. Salt Lake (Sector V Fringe & Sectors I–IV) – 7–8% Yield
- Annual yield: 7–8% (1BHK ~7.95%, 2BHK ~7.3%)
- Why it’s strong:
- Adjacent to Sector V – Kolkata’s IT core with 14.6 million sq ft office space
- High demand from professionals and families seeking proximity to workplaces
- Rents: ₹55K–65K for 3BHK, ₹18K for 2BHK
- Adjacent to Sector V – Kolkata’s IT core with 14.6 million sq ft office space
- Bottom line: Best-in-class yields with premium tenant pull.
2. East Kolkata (Baguihati, Rajarhat) – 6.5–7% Yield
- Local data: Baguihati ~6.8%, Narendrapur ~6.1%
- Why it works:
- Rajarhat and Baguihati buffer Salt Lake and New Town, drawing suburban growth
- Strong spillover from IT growth
- Rajarhat and Baguihati buffer Salt Lake and New Town, drawing suburban growth
- Typical outcomes: Solid mid-6% yields as renters seek newer, affordable housing.
3. Howrah (Shibpur & Bally Corridor) – 3–4% Yield
- Yield range: 3–4% gross yield
- Rental rates: ₹10K–31.2K/month depending on flat size & type
- Selling point:
- Proximity to Howrah Station, the upcoming East-West Metro
- Chennai-like strong demand from blue-collar workers to executives
- Proximity to Howrah Station, the upcoming East-West Metro
- Investor view: Lower than North Kolkata, but still reasonable and often overlooked.
4. North Kolkata (Kankurgachi, Shibpur) – ~6% Yield
- City average: North Kolkata rental yields typically align with 6%
- Why it earns money:
- Long-standing neighbourhoods with heritage housing and steady demand
- Connectivity via Vidyasagar Setu, railway stations, metro station expansions
- Mix of older and newer buildings offers options across budgets
- Long-standing neighbourhoods with heritage housing and steady demand
5. Central/East Kolkata (EM Bypass & Surrounds) – 5.5–6.5% Yield
- Local insights: EM Bypass ~5.7% yields
- Why it’s attractive:
- Near hospitals, malls, offices (Topsia, Ruby, Kasba areas)
- Balanced rent-to-buy value
- Near hospitals, malls, offices (Topsia, Ruby, Kasba areas)
Yield Snapshot
| Area | 1 BHK Yield | 2 BHK Yield | Rationale |
| Salt Lake (Sector IV–V) | ~7.95% | ~7.3% | IT hub access, strong rents |
| East Kolkata (Baguihati…) | – | ~6.8% | Suburban expansion, affordable options |
| North Kolkata (Kankurgachi) | – | ~6% | Heritage charm, stability |
| EM Bypass Corridor | – | ~5.7% | Proximity to services & traffic |
| Howrah (Shibpur/Bally) | – | ~3–4% | Cost-effective, commuter base |
Why Salt Lake Outperforms
- Proximity to Sector V offices – ensures year-round tenant demand
- High rental rates – ₹18K for 2BHK, ₹55K+ for 3BHK
- Infrastructure support – schools, metro, malls, parks
- Rents exceed capital value averages – rent-to-price ratio stands strong vs city average
Choosing the Best Area for You
- Ultimate yield & tenant reliability? Go for Salt Lake
- Balancing affordability and growth? Consider Baguihati/Rajarhat
- Want heritage-by-the-river living? Try Kankurgachi/Shibpur
- Need budget rentals near transport hubs? Howrah is viable
- Prefer urban convenience near services? Check EM Bypass areas
How to Maximise Rental Yield
- Buy 1–2 BHK—higher yields and tenant demand
- Use furnished flats—improve monthly rent by 10–15%
- Target ready-to-rent properties—avoid empty months
- Keep property well maintained—retain tenants and justify rent
- Watch rent escalation—annual hikes add compound yield
- Monitor infrastructure growth—new metro, expressways boost capital
Final Thoughts
- Salt Lake delivers top-tier returns (7–8%)—a must-watch North Kolkata area
- East & Central corridors (Baguihati, EM Bypass) offer 5.5–7% yields with good balance
- North Kolkata is appealing for heritage charm and stable income (~6%)
- Howrah provides affordable entry but lower yields (3–4%)—best for value seekers
By focusing on renter demand, property type, and readiness-to-rent, you can strategically choose a North Kolkata area that aligns with your investment appetite and yield goals.
Source : fulinspace.com