1. Why Rental Yield Matters for Investors
Rental yield is the annual rental income from a property, expressed as a percentage of its value. It’s a quick way to measure how well an investment performs year after year. In India, good rental yield typically falls between 3–6%. Kolkata stands out with above-average returns—6.3% gross in 2025, and even 7–8% in certain neighbourhoods. That’s impressive for a metro where capital values are reasonable .
Top rental-yield spots offer:
- Consistent tenant demand
- Strong rental income vs property value
- Potential for capital value growth
In this blog, we’ll compare Salt Lake and Alipore, then spotlight the top 5 rental-yield areas in Kolkata to help you make informed investment decisions.
2. Salt Lake: The IT-Driven Yield Powerhouse
Overall rental yield: 7–8% annually – solid returns backed by commercial and residential rent trends.
Why Salt Lake delivers:
- A thriving IT hub (Sector V), home to over 1,500 firms and 14.6 million sq ft of office space.
- Q1 2025 net absorption reached ~65% of Kolkata leasing activity—strong tenant demand.
- 2025 rent growth projected around 2.5–3% as vacancy drops and leasing steadies.
Sub-areas in Salt Lake to target:
- Sector V fringes: Appeal to IT employees; yields ~7–8% on smaller 1–2 BHK units.
- Sector II–V residential pockets: Good mix of families and working professionals, rental yield ~6–7%.
3. Alipore: Prestige, but Lower Yield
Average rental yield: ~1% in Alipore and New Alipore.
Why the yield lags:
- Very high purchase prices (₹10K+/sq ft in New Alipore) but rents rise slowly.
- Strong demand from families wanting prestige and central location, but lower income-to-price ratio for investors.
4. Kolkata’s Top 5 Rental-Yield Areas (2025)
1. Salt Lake (Sector IV–V) – 7–8% yield
The city’s best performer: proximity to tech jobs, continuous demand from working professionals, and limited new supply .
2. East Kolkata (Rajarhat/New Town) – 6.5–7% yield
Strong tenant demand near tech parks and IT hubs (New Town, EM Bypass) with modern apartments delivering rental returns around 6.5%.
3. South Kolkata (EM Bypass corridor, New Alipore) – 5.5–6.5% yield
Areas along the bypass offer family housing with good rents (~₹27K/mo for 1,000 sq ft), pushing yields above city averages.
4. Central Kolkata (Park, Camac Street fringe) – ~6% yield
Smaller 1–2 BHK units for young professionals draw solid rent at moderate valuations (~₹6–7% city yields).
5. North Kolkata / Suburbs (Garia, Joka) – 5–6% yield
Affordable entry prices (₹15–18K rent per month) and growing infrastructure connectivity deliver stable rental returns .
5. Yield Comparison: Salt Lake vs Alipore
| Neighbourhood | Avg. Property Price | Avg. Rent for 1,000 sq ft | Gross Yield |
| Salt Lake (Sector V) | ₹5,000–6,000/sq ft | ₹40–45K/month | 7–8% |
| East Kolkata | ₹3,500–4,500/sq ft | ₹25–30K/month | 6.5–7% |
| South Kolkata (EMB) | ₹4,500–6,000/sq ft | ₹27–30K/month | 5.5–6.5% |
| Alipore | ₹10,000+/sq ft | ₹25–30K/month | ~1% |
| North Suburbs (Garia) | ₹2,800–4,200/sq ft | ₹17–20K/month | 5–6% |
6. What Drives Higher Yields in Salt Lake
- Proximity to Sector V jobs—tech workers pay premium rent.
- Strong office leasing—0.28 msf absorption in Q1 2025.
- Limited fresh residential supply—rental demand keeps up pressure with yields at 7–8% .
By contrast, Alipore’s sky-high prices mean rent-to-price returns are low.
7. Rental Yield Formula: Easy to calculate
Use this formula:
Gross Rental Yield = (Annual Rent ÷ Property Value) × 100
Example: ₹50K rent/month × 12 ÷ (₹50 lakh flat × 100) → 12 ÷ 50 = 0.24 → 6%.
Net yield (after costs) is typically 1–2% lower.
Always factor in maintenance, agent fees, taxes, and vacancy bills for realistic returns.
8. Tips to Maximize Rental Yield in Kolkata
- Buy smaller units (1–2 BHK) near office or metro for better tenant demand.
- Target Salt Lake & East Kolkata for higher yields.
- Evaluate net yield after all expenses—this is what truly matters.
- Choose ready-to-move homes to start earning faster; ready newer flats avoid delays.
- Market smartly—use online portals for higher visibility and faster leasing.
- Maintain the apartment well—higher-grade units can fetch 10–20% more rent.
- Leverage short-term rentals—Airbnb yields ~₹39 ADR and ₹3,600/yr average revenue; can boost returns in areas like Salt Lake.
9. Final Takeaway
If you’re comparing Salt Lake vs Alipore for investment:
- Salt Lake delivers strong 7–8% yield thanks to its tech community and rent appetite.
- Alipore, while upscale, only gives ~1% yield—great for capital gains, not income.
- East and South Kolkata offer decent 5–7% yields—balanced investment options.
Summary of Top Rental Yield Spots
- Salt Lake (Sector IV–V) – 7–8% yield
- East Kolkata (Rajarhat/New Town) – 6.5–7% yield
- South Kolkata (EM Bypass/New Alipore) – 5.5–6.5% yield
- North Suburbs (Garia, Joka) – 5–6% yield
- Central areas (Park Street fringe) – ~6% yield
Source : fulinspace.com