- Which is best for rental income?
Which is best for rental income Bengaluru or Dubai? Bengaluru, known as the IT hub of India, is now facing a new kind of competition with Dubai—not in tourism, but in rental prices. Rental rates in Bengaluru have been rising drastically, and this has become a topic of discussion on social media. While tenants are expressing their frustration over the sharp rise in rents, investors are keenly exploring the rental income potential in the city. Many are questioning whether investing in Bengaluru is better than investing in Dubai.
Rentals in Bengaluru, especially in key IT hubs such as Whitefield, Koramangala, and Indiranagar, have seen a sharp increase, causing concern among tenants. Despite earning salaries similar to other global technology hubs, many are expressing their worries that the cost of living in Bengaluru is increasing faster than their incomes, making housing unaffordable. Rent in some areas like Koramangala, Indiranagar, HSR Layout, and parts of North Bengaluru have gone up by 30 to 40 percent due to the imbalance between supply and demand. As a result, many are struggling to keep up with the rising cost of living in the city. Some are even reconsidering whether to continue living in Bengaluru due to the growing financial burden.
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In Bengaluru, to maintain a decent middle-class lifestyle, experts suggest that individuals must earn a minimum of Rs 55,000-60,000 per month. Although rent is also high in Dubai, it is slightly better in Sharjah, where a good apartment can be rented for Rs 70,000. Despite the high cost of living, experts say that Dubai remains the top investment choice for Indians due to its excellent infrastructure and tax-free income.
In Bengaluru, the typical rental yield ranges from 3 to 4.5 percent, depending on the area and property type. However, in Dubai, regardless of the location or type of property, the minimum rental yield is around 7%. This makes it an attractive option for investors. Experts predict continued growth in areas like Jumeirah Lake Towers, Dubai Silicon Oasis, Jumeirah Village Circle, Dubai Production City, and Dubai South.
