Howrah, often called the “Gateway to Kolkata,” is transforming from a purely industrial town into a mixed residential and commercial hub. With four bridges linking it to central Kolkata, ongoing metro expansion, and improving road networks, Howrah is seeing steady demand from commuters, students, and small families. Property prices here remain lower than nearby Kolkata suburbs, yet monthly rents are competitive—resulting in healthy rental yields of roughly 3–4% in 2025. But not all localities in Howrah deliver the same returns. In this guide, we’ll deep‑dive into the top five micro‑markets in Howrah that promise the best rental yields, based on current rent levels, prevailing prices, and tenant demand. Whether you’re an NRI investor, a first‑time landlord, or simply scouting for passive income, these insights will help you pinpoint where to put your money.
How We Calculated Rental Yields
Rental Yield (%) = (Annual Rent ÷ Property Value) × 100
- Gather Rent Data: We surveyed recent 1 BHK rents on platforms like Housing.com and 99acres across multiple Howrah localities.
- Estimate Property Prices: We used price ranges from Wintwealth’s Howrah investment report and local broker listings to set per‑sq ft. averages for each area.
- Assumed Carpet Areas: Typical 1 BHK sizes (350–605 sq ft.) and 2 BHK sizes (600–800 sq ft.) were applied consistently.
- Yield Ranking: Areas were ranked by resulting gross yields, focusing on stability of demand and likelihood of future appreciation.
| Rank | Area | Avg. Price (₹/sq ft.) | Example Rent (₹/mo) | Flat Size (sq ft.) | Annual Rent (₹) | Implied Price (₹) | Yield (%) |
| 1 | Uluberia | 4,500 | 5,500 | 250 | 66,000 | 11,25,000 | 5.9 |
| 2 | Santragachi | 5,633 | 11,500 | 605 | 1,38,000 | 34,08,865 | 4.0 |
| 3 | Kona (Joyville) | 7,000 | 12,000 | 605 | 1,44,000 | 42,35,000 | 3.4 |
| 4 | Shibpur | 5,535 | 12,000 | 550 | 1,44,000 | 30,44,250 | 4.7 |
| 5 | Bally | 4,343 | 6,000 | 550 | 72,000 | 23,88,650 | 3.0 |
Yields are gross figures; actual net yields will depend on maintenance, property tax, and vacancy periods.
1. Uluberia: Highest Returns on a Budget
Rental Yield: ~5.9%
Why Uluberia?
- Affordability: Property rates average just ₹4,500/sq ft.—among the lowest in Howrah.
- Emerging Demand: Proximity to NH‑16 and upcoming road widening projects make commutes to Kolkata and industrial corridors easier.
- Tenant Profile: Factory workers, small families, and students from nearby technical institutes seek budget 1 BHKs. Housing.com lists unfurnished 1 BHKs at ₹3,500–₹5,500/month in Mourigram and Uluberia areas.
Representative Calculation
- Flat: Unfurnished 1 BHK, 250 sq ft.
- Rent: ₹5,500/month → ₹66,000/year.
- Value: 250 × ₹4,500 = ₹11,25,000.
- Yield: (66,000 / 11,25,000) × 100 ≈ 5.9%.
On‑Ground Insights
- Infrastructure: New road links to Kona Expressway reduce traffic snarls.
- Risks: Some stretches still lack reliable MCD water supply; ensure buildings have borewell and overhead tank backup.
- Tip: Look for pockets near the Amta Road junction, where new gated communities offer competitive rents and steadier occupancy.
2. Santragachi: A Transit‑Oriented Spot
Rental Yield: ~4.0%
Why Santragachi?
- Transport Hub: Santragachi Junction is a major rail node for South Eastern Railway, drawing railway employees and frequent travellers.
- Improved Connectivity: Kona Expressway and the upcoming East‑West Metro corridor pass through Santragachi, boosting both demand and future appreciation.
- Tenant Mix: Commuters, railway staff, and young couples—willing to pay ₹10,000–₹11,500 for a 600 sq ft. flat.
Representative Calculation
- Flat: 1 BHK, 605 sq ft.
- Rent: ₹11,500/month → ₹1,38,000/year.
- Value: 605 × ₹5,633 (Kolkata average) = ~₹34,08,865.
- Yield: (1,38,000 / 34,08,865) × 100 ≈ 4.0%.
On‑Ground Insights
- Amenities: Growing cluster of retail shops, medical clinics, and small learning centres around the station area.
- Risks: Some properties face noise and dust from rail activity; higher‑floor units mitigate these issues.
- Tip: Seek flats in Arbor Vista or City Pavilion complexes for better construction and tenant amenities.
3. Kona (Joyville Complexes): Mid‑Market Balance
Rental Yield: ~3.4%
Why Kona?
- Mixed‑Use Developments: Projects like Shapoorji Pallonji Joyville offer branded construction, basic amenities (gym, pool), and 24×7 security—attracting mid‑level IT and small‑business tenants.
- Connectivity: Kona is the gateway to Vidyasagar Setu and the Vidyasagar Metro feeder routes.
- Rent Spectrum: Flats in Joyville complexes rent at ₹10,000–₹19,000 depending on size and furnishings.
Representative Calculation
- Flat: 1 BHK, 605 sq ft.
- Rent: ₹12,000/month → ₹1,44,000/year.
- Value: 605 × ₹7,000 = ₹42,35,000.
- Yield: (1,44,000 / 42,35,000) × 100 ≈ 3.4%.
On‑Ground Insights
- Amenities: Branded complexes reduce landlord hassle—maintenance and tenant sourcing are often handled by developers or appointed managers.
- Risks: Higher price entry means yields hover just above 3%; investors need to factor in corpus funds and maintenance charges.
- Tip: Opt for semi‑furnished units to boost rents by 8–10% without large CapEx.
4. Shibpur: A Legacy Neighbourhood
Rental Yield: ~4.7%
Why Shibpur?
- Educational Hub: Home to IIEST (formerly Bengal Engineering & Science University), coaching centres, and schools—ensuring steady student tenancy.
- Green Cover: Relative to other Howrah areas, Shibpur retains tree‑lined avenues and easy access to the Botanical Gardens.
- Rental Levels: 1 BHK in Arihant Enclave or similar builder floors rent at ₹12,000/month for ~550 sq ft..
Representative Calculation
- Flat: 1 BHK, 550 sq ft.
- Rent: ₹12,000/month → ₹1,44,000/year.
- Value: 550 × ₹5,535 = ₹30,44,250.
- Yield: (1,44,000 / 30,44,250) × 100 ≈ 4.7%.
On‑Ground Insights
- Transport: Close to Howrah Station via small‑vehicle routes; easy access for students and daily commuters.
- Risks: Some older buildings lack parking and power backup; newer societies have higher corpus demands.
- Tip: Look for pockets around Vivekananda Bridge approach, where newer gated projects mix with affordable builder floors.
5. Bally: Steady but Modest Yields
Rental Yield: ~3.0%
Why Bally?
- Established Locality: Named for its proximity to Bally Bridge, the area blends suburban calm with quick city access.
- Pricing: One of Howrah’s broadest price ranges—₹1,111–7,575 per sq ft.—with average ₹4,343/sq ft..
- Rental Examples: Fully furnished 1 BHKs fetch ₹6,000–₹7,500 for 550 sq ft..
Representative Calculation
- Flat: 1 BHK, 550 sq ft.
- Rent: ₹6,000/month → ₹72,000/year.
- Value: 550 × ₹4,343 = ₹23,88,650.
- Yield: (72,000 / 23,88,650) × 100 ≈ 3.0%.
On‑Ground Insights
- Amenities: New malls (Avani Riverside), schools, and hospitals are springing up along Bally Road.
- Risks: Rental demand is lower than inner‑city pockets; yields are below Howrah average.
- Tip: Buyers seeking steadier occupancy may prefer Bally’s mid‑segment yields for lower vacancy despite modest returns.
Other Noteworthy Areas
- Andul Road: Starting to see mid‑range gated complexes; yields around 3.2–3.5%.
- Jagacha/Dump area: Smaller builder floors at ₹5,000–₹6,500 rent and prices ~₹4,500/sq ft. → yields ~4%.
- Mourigram: Unfurnished 1 BHKs at ₹3,500–₹4,000 rent; prices ~₹4,000/sq ft. → yields ~4–4.5%.
Factors Affecting Howrah Rental Yields
- Connectivity Improvements: Metro expansions, new bridges, and highway widenings boost rents and property values.
- Property Age: Newer complexes with amenities can command 10–15% higher rent but also cost more upfront, keeping yields in check.
- Tenant Profile: Areas close to industrial belts or educational institutes offer more stable demand versus pure commuter pockets.
- Maintenance & Vacancy: High maintenance charges or long vacancy spells hurt net yields; aim for areas with balanced demand.
- Price Appreciation: While yields matter, capital gains from undervalued pockets (Uluberia, Mourigram) add to total returns.
Tips for Maximizing Your Howrah Rental Investment
- Target 1 BHKs for Yield: Smaller flats tend to yield 4–6%, versus 2–3% for larger 3 BHKs.
- Semi‑Furnished Premium: Providing basic furniture and appliances can boost rents by 8–12% with limited CapEx.
- Engage a Local Property Manager: Minimizes vacancy, hastens maintenance, and ensures timely rent collection, protecting your yield.
- Timing Your Purchase: Pre‑launch or under‑construction deals in emerging pockets often offer lower entry prices, pushing yields above 5% for early buyers.
- Leverage Tax Benefits: Claim deduction on home loan interest (Section 24(b)) and standard deduction on rental income to improve net returns.
Conclusion
Howrah’s real estate market in 2025 offers compelling rental yields, especially in emerging pockets like Uluberia (≈5.9%) and steady performers such as Santragachi (≈4.0%) and Shibpur (≈4.7%). Mid‑market hubs like Kona deliver branded comforts at moderate yields (≈3.4%), while established Bally offers lower but stable returns (≈3.0%). By aligning your strategy—focusing on 1 BHK units, semi‑furnished offerings, and transit‑oriented locations—you can secure gross yields of 4–6%. Factor in maintenance, taxes, and vacancy to gauge net returns, and partner with a local manager to protect and optimize your investment. With connectivity upgrades and infrastructural growth on the horizon, Howrah’s rental market is set to remain attractive for income‑seeking investors in the coming years.
Source : fulinspace.com