Top 5 Areas in Bangalore with the Highest Rental Yield (2026 Guide)
Bangalore’s real estate market has evolved from being purely end-user driven to becoming one of India’s strongest rental markets. With a steady inflow of IT professionals, startup founders, consultants, and multinational employees, rental demand in the city remains structurally strong.
While capital appreciation differs across micro-markets, certain locations consistently deliver higher rental yields, particularly those close to IT corridors and business districts.
Rental yield is calculated as:
(Annual Rental Income ÷ Property Value) × 100
In Bangalore, gross residential rental yields typically range between 2.5% and 4.5%, depending on the locality, property type, and tenant demand.
Below are five areas that currently rank among the highest rental-yield micro-markets in Bangalore based on rental demand trends, property pricing, and occupancy levels.
1. Whitefield
Whitefield remains one of Bangalore’s most dependable rental markets. With ITPL, EPIP Zone, and numerous multinational companies operating in the area, tenant demand is consistent throughout the year.
Average residential prices in Whitefield range between approximately ₹8,500 and ₹13,000 per square foot depending on project age and amenities. Monthly rents for a two-bedroom apartment often range from ₹28,000 to ₹45,000 in well-connected projects.
Gross rental yields in Whitefield typically range between 3.5% and 4.2%, making it one of the stronger performing rental zones in East Bangalore.
Whitefield works well for investors seeking steady rental cash flow with moderate appreciation potential.
2. Electronic City
Electronic City is one of the most rental-intensive corridors in Bangalore. It houses major technology campuses and has a large population of working professionals.
Property prices here are comparatively lower than Whitefield, often ranging between ₹5,500 and ₹8,500 per square foot. At the same time, rental demand remains high due to proximity to employment hubs.
Two-bedroom units can command monthly rents between ₹18,000 and ₹30,000 depending on the project and furnishing level.
Because of lower capital entry and stable rent, Electronic City often delivers rental yields in the range of 4% to 4.5%, among the highest in Bangalore.
This locality suits investors focused primarily on yield rather than premium lifestyle positioning.
3. Sarjapur Road
Sarjapur Road has transformed into a major residential belt supporting the Outer Ring Road IT corridor. Connectivity to Bellandur, Marathahalli, and Electronic City has strengthened its rental demand.
Prices in Sarjapur Road projects generally range between ₹7,500 and ₹11,000 per square foot. Rental values for two-bedroom apartments usually fall between ₹25,000 and ₹40,000 depending on the society and furnishing.
Gross rental yields here typically range between 3.5% and 4%. Continued infrastructure upgrades and social infrastructure growth support rental sustainability.
4. Hebbal
Hebbal, located in North Bangalore, benefits from its proximity to Manyata Tech Park and strong connectivity to the airport.
Property prices in Hebbal are relatively higher, often ranging from ₹9,000 to ₹16,000 per square foot in premium projects. Rental demand remains healthy due to the concentration of IT parks and business centres.
Two-bedroom apartments in good societies may rent between ₹35,000 and ₹55,000 per month.
Despite higher capital values, rental yields in Hebbal generally fall between 3% and 3.8%, supported by corporate tenants and executive housing demand.
5. HSR Layout
HSR Layout continues to be one of Bangalore’s most sought-after residential and commercial mixed zones. With startups, co-working hubs, and proximity to the Outer Ring Road, rental demand remains strong.
Property prices here range approximately between ₹9,000 and ₹15,000 per square foot. Rental values for two-bedroom apartments commonly range from ₹30,000 to ₹50,000 depending on the block and furnishing.
Rental yields typically range between 3% and 3.8%.
HSR appeals to investors looking for a blend of rental stability and lifestyle-driven tenant demand.
Why These Areas Deliver Higher Rental Yields
Three consistent factors drive higher rental yield in Bangalore:
- Proximity to employment hubs such as IT parks and corporate offices.
- Lower entry property prices relative to rental demand.
- Strong occupancy levels due to migrant workforce inflow.
Micro-markets with a combination of affordable entry and stable tenant pools tend to outperform premium zones where capital values are higher but rents do not increase proportionately.
Why These Areas Deliver Higher Rental Yields
Three consistent factors drive higher rental yield in Bangalore:
- Proximity to employment hubs such as IT parks and corporate offices.
- Lower entry property prices relative to rental demand.
- Strong occupancy levels due to migrant workforce inflow.
Micro-markets with a combination of affordable entry and stable tenant pools tend to outperform premium zones where capital values are higher but rents do not increase proportionately.
