A Bengaluru resident recently sparked a debate on whether older apartments offer better investment value than newly launched projects. The user argued that 15-20-year-old apartments often yield around 4% or more, compared to 2-3% for many new developments. Established neighbourhoods, lower vacancy risks and greater room for price negotiation were cited as additional advantages.
“...rental yield on older apartments seems higher. Around 4% in some cases. Plus the area is already developed, so vacancy is low. I also feel it’s easier to negotiate a better deal with resale owners. Newer projects on the other hand are giving 2 to 3% rental at best. And prices are honestly crazy even for category B builders,” the Reddit post said,
The discussion prompted a broader question: if older apartments deliver stronger rental returns, why do investors continue to favour new launches despite soaring property prices?
Older apartments may offer higher rental yields and better location
Several participants agreed that older apartments can offer superior rental yields because their purchase prices are relatively lower while rental demand remains stable in established localities.
