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Rental Yield in Bangalore - Quick Info What Is Rental Yield & How Is It Calculated?Current Rental Market Landscape in Bangalore Average Rental Yield in Bangalore (Current Market Snapshot)Best Areas in Bangalore for High Rental Yield Rental Yield by Property Type in Bangalore Comparing Bangaloreâs Rental Yield With Other Major Indian Cities Factors Impacting Rental Yield in Bangalore Maximising Your Rental Yield in Bangalore Rental Yield vs Capital Appreciation in Bangalore How NoBroker Can Help with Rental Services?Frequently Asked Questions

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Home Blog Rental Guide for Renters, Tenant & Landlord Rental Yield in Bangalore 2026

Rental Yield in Bangalore: Current Trends and Top High Return Areas in 2026

Published : December 30, 2025, 6:53 PM

Updated : December 30, 2025, 6:53 PM

Author : Prakhar

Rental Guide for Renters, Tenant & Landlord

Real Estate and Housing Bangalore , Rental Market Insights and Strategies

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Summary

Understanding rental yield in Bangalore is important for investors balancing income with property growth. As a major IT hub attracting professionals, students, and expats, the city has high rental demand and yields of 3%–6%, outperforming many Indian metros. Micro-markets like Electronic City, Whitefield, and Sarjapur Road offer strong returns due to their proximity to tech corridors and expanding infrastructure. Evaluating rental yield helps investors compare returns, identify high-performing localities, and select properties for reliable cash flow and capital appreciation.

Table of Contents

As India's Silicon Valley, Bangalore attracts professionals, students, and expats, fueling high demand for housing. That is why understanding rental yield in Bangalore is essential for smart investors. Rental yield shows high annual returns from rental income, reflecting a property's profitability beyond capital appreciation. For cash-flow investors, Bangalore's average rental yield offers a reliable way to grow wealth, balancing income with long-term gains.

Rental Yield in Bangalore - Quick Info

To give you a snapshot of the current market, here is a quick reference table highlighting key metrics of the Bangalore rental yield landscape.

Metric	Bangalore Rental Market
Avg Rental Yield	3% - 6%
Best Yield Areas	Electronic City, Whitefield, Sarjapur Road
Ideal Property Type	Mid-segment 2 BHK Apartments
Tenant Demand	High (IT Professionals, Students, Expats)
Investment Style	Balanced (Cash Flow + Appreciation)

What Is Rental Yield & How Is It Calculated?

Rental yield, expressed as a percentage, represents the annual rental income generated from a property relative to its market value. In Bangalore, where rental properties are in high demand, understanding rental yield is essential for investors seeking to optimise returns. The city's diverse neighbourhoods, ranging from bustling tech hubs to serene residential enclaves, each offer unique rental yield dynamics influenced by factors such as location, property type, and market trends.

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Rental yield is a straightforward financial metric that expresses the annual rental income generated by a property as a percentage of its total value or purchase price. It effectively shows how much money you earn back from your investment each year from rent alone. [1]

The Formula:
- Gross Rental Yield = (Annual Rental Income / Property Value) × 100
Simple Example:
- Imagine you purchase an apartment in Bangalore for ₹50,00,000. If you rent it out for ₹20,000 per month, your annual rental income is ₹2,40,000.
- Calculation: (2,40,000 / 50,00,000) × 100 = 4.8%
- This 4.8% is your gross rental yield bangalore, giving you a clear percentage to compare against other investment options like fixed deposits or mutual funds.

Current Rental Market Landscape in Bangalore

The trends reflect a dynamic mix of high demand, rising rents, and pockets of affordability, presenting both challenges and opportunities for investors and tenants alike.

High Demand

The continued expansion of the IT/ITeS sector in Bangalore serves as a primary driver of demand for rental properties, particularly in areas proximate to tech hubs such as Electronic City, Whitefield, and Outer Ring Road. The resurgence in demand observed in Q1 2023, following a brief downturn, underscores the city's resilience and attractiveness to renters.

Rising Rents

Rental prices in Bangalore have experienced a notable upward trajectory, outpacing those of other major Indian cities. Reports indicate an average rental hike of 8.1% in Q2 2023 compared to the previous quarter, reflecting the growing demand-supply imbalance in the market. The median monthly rent has surged substantially since pre-pandemic levels, now ranging from INR 55,000-60,000, marking a significant increase from the previous range of INR 30,000-35,000.

Limited Supply

The surge in rental prices can be attributed, in part, to a lag in the supply of new residential units with adequate amenities. Developers have struggled to keep pace with the soaring demand for rental accommodation, exacerbating the supply-demand imbalance and putting upward pressure on rents.

Variations by Location

While rental prices across Bangalore are on the rise, there are notable variations based on location. Central and East Bangalore, encompassing areas like Whitefield, Sarjapur Road, and Marathahalli, command the highest rents, with some properties fetching up to INR 80,000 per month. Conversely, North Bangalore offers comparatively more affordable options, with monthly rents for 2 BHK apartments ranging from Rs 25,000 to Rs 35,000 in areas such as Kammanahalli, Hennur, and Kothanur.

Average Rental Yield in Bangalore (Current Market Snapshot)

The average rental yield in Bangalore is currently outpacing many other Indian metropolitan cities. While the national average hovers around 2-3%, Bangalore consistently delivers between 3% and 6%, depending on the specific micro-market and property configuration. [2]

Rental Yield by Property Type in Bangalore:

Furnished homes and smaller units often offer better returns than larger properties. Choosing the right rental Property in Bangalore can boost income and increase overall ROI.

Property Type	Avg Rental Yield
1 BHK	5% - 7%
2 BHK	3.5% - 5.5%
3 BHK	3.0% - 5%
Furnished Apartments	10% - 30%

Note: Yields are generally higher in localities near major IT hubs such as Whitefield and Electronic City due to high tenant demand, whereas premium central areas may offer lower yields but greater capital stability.

Commercial Rental Yield in Bangalore

Commercial rental yields in Bangalore generally range from 5%–9% annually, outpacing residential yields due to strong office absorption, long-term corporate leases, and sustained demand from IT, startup, and multinational companies across major business corridors. [3] [7] [8]

Commercial Rental Yield by Micro-Market (Bangalore):

Locality / Zone	Typical Annual Rental Yield	Key Demand Drivers
Whitefield	6% – 9%	Major IT parks, Metro Purple Line, multinational offices
Electronic City	6% – 8.5%	Large IT campuses, stable corporate leasing
Sarjapur Road	6% – 8%	Tech parks, startup ecosystem, residential catchment
Koramangala	4% – 7%	Premium commercial spaces, startups, retail offices
Indiranagar	4% – 6.5%	High-street retail, boutique offices, premium rentals
North Bangalore (Bagalur / Airport Zone)	6% – 8.5%	Airport-led growth, upcoming tech parks, and infrastructure

Best Areas in Bangalore for High Rental Yield

If your primary goal is maximising monthly income, certain localities consistently outperform others. These are the best rental yields in Bangalore hotspots for 2025.

1. Electronic City

Tenant Profile: IT Professionals, Industrial Workers
Average Yield: 4.2% - 5.5%
Why it works: Large IT parks, strong rental demand, ongoing metro connectivity boost
Property trend: High supply of 1 & 2 BHKs preferred for rental income

Flat For Rent in Electronic City, Bangalore

City	Average Rental Yield Range
Bangalore	3% - 6%
Mumbai	2% - 3%
Delhi-NCR	2% - 4%
Pune	3% - 5%
Chennai	3% - 5%
Hyderabad	3% - 5%
Kolkata	3% - 5%
Ahmedabad	4% - 6%
Gurugram	3% - 5%
Jaipur	3% - 5%
Chandigarh	3% - 5%
Kochi	3% - 5%
Lucknow	3% - 5%
Bhubaneswar	3% - 5%
Coimbatore	3% - 5%
Visakhapatnam	3% - 5%
Nagpur	3% - 5%
Surat	4% - 6%
Jaipur	3% - 5%
Udaipur	3% - 5%
Varanasi	3% - 5%
Mysore	3% - 5%
Patna	3% - 5%
Guwahati	3% - 5%
Ranchi	3% - 5%
Vijayawada	3% - 5%
Bhopal	3% - 5%
Indore	3% - 5%
Dehradun	3% - 5%
Jamshedpur	3% - 5%

Aspect	Rental Yield	Capital Appreciation
Focus	Monthly cash flow & income generation.	Long-term wealth creation & value growth.
Ideal Areas	Electronic City, Whitefield, BTM Layout	Indiranagar, Koramangala, Hebbal
Investor Type	Cash-flow focused investors, Retirees.	Long-term investors, Wealth builders.
Risk Profile	Low risk, immediate returns.	Moderate risk, delayed returns.

Rental Yield in Bangalore: Current Trends and Top High Return Areas in 2026

Rental Yield in Bangalore - Quick Info

What Is Rental Yield & How Is It Calculated?

Current Rental Market Landscape in Bangalore

High Demand

Rising Rents

Limited Supply

Variations by Location

Average Rental Yield in Bangalore (Current Market Snapshot)

Rental Yield by Property Type in Bangalore:

Commercial Rental Yield in Bangalore

Commercial Rental Yield by Micro-Market (Bangalore):

Best Areas in Bangalore for High Rental Yield

1. Electronic City

2. Whitefield

3. Sarjapur Road

4. North Bangalore (Hebbal)

5. BTM Layout

6. Bellandur

7. Yelahanka

8. HSR Layout

9. Koramangala

10. Indiranagar

Rental Yield by Property Type in Bangalore

Comparing Bangalore’s Rental Yield With Other Major Indian Cities

Factors Impacting Rental Yield in Bangalore

Location

Property Type and Size

Demand and Supply

Infrastructure Development

Market Trends

Property Conditions and Amenities

Regulatory Environment

Tenant Profile

Maximising Your Rental Yield in Bangalore

Choose the Right Location

Invest in the Right Property Type

Maintain and Upgrade Your Property

Offer Competitive Rental Rates

Effective Property Management

Minimise Vacancy Periods

Stay Informed About Market Trends

Diversify Your Investment Portfolio

Long-Term Investment Strategy

Rental Yield vs Capital Appreciation in Bangalore

How NoBroker Can Help with Rental Services?

Frequently Asked Questions

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