Identifying the best spots for rental yield in Bengaluru can be tricky—prices rise fast, tenant demand shifts, and new infrastructure changes everything. In this blog, we’ll highlight the Top 5 localities where rental yields are strongest as of mid-2025, with a special focus on HSR Layout vs. JP Nagar.
1. What Is Rental Yield and Why It Matters
Rental yield is the annual rental income divided by the property’s total value, expressed as a percentage. In other words:
Rental Yield (%)=(Annual Rent/Property Value)×100
For example, if a 2 BHK apartment in HSR Layout rents for ₹27,000 per month (₹324,000 per year) and costs ₹9,156 per sq ft (assuming 1,000 sq ft → ₹91.56 lakh), the yield is roughly:
₹3,24,000₹9,156,000×100≈3.54%\frac{₹3,24,000}{₹9,156,000} \times 100 \approx 3.54\%₹9,156,000₹3,24,000×100≈3.54%
Yields give buyers a quick sense of cash returns (rent) versus the capital outlay (price). A higher yield means you recover a larger percentage of your investment through rent each year, which matters if you’re depending on rental income to cover EMI or to generate passive cash flow. In Bangalore’s changing market, yields between 3.5 – 6% (net) are considered healthy .
2. Why Rental Yield Is Crucial for Bengaluru Investors
- Cash‐Flow Focus: Even if property values appreciate, you still need to pay EMI, municipal tax, and maintenance. A higher yield helps cover those recurring costs.
- Risk Mitigation: Areas with strong yields often have consistent tenant demand—think young IT professionals or students—so occupancy stays high.
- Future Resale Value: High‐yield neighborhoods typically command premium rents because they’re well-connected and have amenities. That same demand often drives up capital appreciation over time.
- Interest Rates & Inflation: If home‐loan rates creep up, yields help maintain positive cash flow. In 2025, many lenders are around 9.5 – 10.5% for home loans; properties yielding 4 – 6% leave a smaller gap to bridge with appreciation.
3. How We Picked the Top 5 Spots
We looked at:
- Recent data (2025) on average sale price per sq ft and average rent for 2 BHKs or similar units.
- Verified rental yields published by portals or local real-estate advisories.
- Accessibility (proximity to major IT/office hubs, Metro lines, ORR/Ongoing highways).
- Occupancy trends: Higher yields usually indicate stable tenant demand.
After comparing yields across 15 + neighborhoods, these emerged as the top 5:
- HSR Layout (Yield: 4 – 6%)
- 7th Phase JP Nagar (Yield: 5 %)
- Whitefield (Yield: 4 – 6%)
- Electronic City (Yield: 4 – 6%)
- Marathahalli (Yield: 4 – 6%)
Below, we break down each area—prices, rents, yield range, and what makes it tick.
4. Neighborhood Deep Dives
4.1 HSR Layout (4 – 6% Yield)
4.1.1 Overview
HSR (Hosur-Sarjapur Road) Layout is a mid-sized, well-planned suburb in southeast Bengaluru, divided into six sectors. It has wide roads, parks, and decent infrastructure—schools, hospitals, malls—and is within a 15–20 minute drive to Outer Ring Road (ORR) tech parks (e.g., Wipro SEZ, SAP Labs). It also has multiple BMTC feeders and promised Metro connectivity (Yellow Line extension) by 2026 .
4.1.2 Price & Rent Data
- Average Sale Price:
- Average Rent (2 BHK):
4.1.3 Calculating Yield
- Example: 1,000 sq ft flat at ₹9,156/sq ft = ₹91.56 lakh; rent ₹27,000 × 12 = ₹3,24,000 → yield ≈ 3.54%.
- Yield Range: Because prices vary by sector and builder, yields can range from 4% (if price is higher, say ₹11,500/sq ft with ₹30,000 rent) to 6% (if you find a ₹7,000/sq ft deal with ₹24,000 rent).
- Why It Works:
- Steady demand from IT professionals working along ORR.
- Schools (Inventure Academy, Indus International) and hospitals (Apollo, Manipal) are nearby.
- A mix of older apartments (10 + years, lower price) and new launches (mid-range), allowing investors to pick older stock for better yield.
- Steady demand from IT professionals working along ORR.
4.2 7th Phase JP Nagar (≈ 5% Yield)
4.2.1 Overview
JP Nagar (Jayaprakash Narayan Nagar) spans 1st to 9th Phase in south Bengaluru. 7th Phase, near the JP Nagendra Layout junction, is popular with IT/biotech professionals because it’s close to Banashankari, Konanakunte Road, and Bannerghatta Road (multiple bus/auto routes toward Electronic City and other tech parks). Over the last 3 years, most high-rise and mid-rise projects have been in 7th Phase, attracting long-term tenants.
4.2.2 Price & Rent Data
- Average Sale Price:
- Average Rent (2 BHK):
4.2.3 Calculating Yield
- Example: 1,000 sq ft unit at ₹8,300/sq ft = ₹83 lakh; rent ₹26,000 × 12 = ₹3,12,000 → yield ≈ 3.76%.
- Official Yield: 99Acres reports ~ 5% because some resale flats (8–10 years old) sell for ₹7,000 – ₹8,000 per sq ft with rent still around ₹24,000 – ₹26,000.
- Why It Works:
- Affordable older stock (2010–2015) priced ₹7,000 – ₹8,500 per sq ft that commands ₹24,000 – ₹26,000 rent → yields up to 5%.
- Proximity to Bannerghatta Road, Jayanagar, and J.P. Nagar 4th Phase metro station (Green Line) gives easy access to Koramangala/K.H. Road.
- Good demand from small families and startups—Universities like IIM-B and retail malls (Royal Meenakshi Mall) are a short drive away.
- Affordable older stock (2010–2015) priced ₹7,000 – ₹8,500 per sq ft that commands ₹24,000 – ₹26,000 rent → yields up to 5%.
4.3 Whitefield (4 – 6% Yield)
4.3.1 Overview
Whitefield, in Bengaluru’s east, is one of the earliest IT corridors, hosting International Tech Park Bangalore (ITPB), EPIP Zone, and plenty of software and BPO offices. Over the last decade, it’s seen massive residential development—high-rise towers and gated communities—to serve both foreign expats and Indian IT staff.
4.3.2 Price & Rent Data
- Average Sale Price:
- Average Rent (2 BHK):
4.3.3 Calculating Yield
- Example: 1,000 sq ft at ₹9,000 per sq ft = ₹90 lakh; rent ₹32,000 × 12 = ₹3,84,000 → yield ≈ 4.27%.
- Yield Range: Because older stock (2010–2015) goes for ₹7,000 – ₹8,000 per sq ft with rent ~₹28,000, yields can be near 6%. Newer towers at ₹11,000 – ₹12,000 per sq ft with rent ₹35,000 – ₹40,000 yield ~4 – 4.5%.
- Why It Works:
- Huge IT cluster: IBM, Cisco, Infosys, and many startups are within a 5 km radius.
- Excellent social infrastructure: Schools (DPS, Vydehi), hospitals (Manipal, Columbia Asia), and malls (Forum Shantiniketan).
- Strong tenant pool: IT professionals who prefer to live close to work, reducing commute along Whitefield-ITPL Road.
- Huge IT cluster: IBM, Cisco, Infosys, and many startups are within a 5 km radius.
4.4 Electronic City (4 – 6% Yield)
4.4.1 Overview
Electronic City (South), along Hosur Road (NH 44), is home to major tech parks: Infosys (Phase 1 & 2), Wipro, HCL, and many smaller IT/ITES companies. Over the years, residential development has boomed in sectors like Begur Road, Anekal, and the inner pockets of Electronic City Phase 1.
4.4.2 Price & Rent Data
- Average Sale Price:
- Average Rent (2 BHK):
- Ranges from ₹18,000 – ₹25,000 per month, depending on location and furnishing.
- Premium gated communities (Sobha Dream Gardens, Godrej Summit) can fetch up to ₹30,000 – ₹35,000.
- Ranges from ₹18,000 – ₹25,000 per month, depending on location and furnishing.
4.4.3 Calculating Yield
- Example: 1,000 sq ft flat at ₹6,000 per sq ft = ₹60 lakh; rent ₹20,000 × 12 = ₹2,40,000 → yield ≈ 4.0%.
- Yield Range: If you get an older flat at ₹5,000 per sq ft with rent ₹20,000, yield = 4.8%. Newer units at ₹8,000 per sq ft with ₹28,000 rent → 4.2%. Well-priced resale deals can hit 6% in some Phase 1 pockets.
- Why It Works:
- Large IT workforce residing locally to avoid long Hosur Road/NH 44 traffic.
- Proximity to Nice Road/Godrej Aerotropolis makes last-mile connectivity better.
- Upcoming Peripheral Ring Road (PRR) and Nogare station (Bengaluru-Mysuru rail) will improve connectivity further.
- Large IT workforce residing locally to avoid long Hosur Road/NH 44 traffic.
4.5 Marathahalli (4 – 6% Yield)
4.5.1 Overview
Marathahalli, along Old Madras Road in eastern Bengaluru, sits between KR Puram and BTM Layout. It’s a mix of older standalone buildings and new high-rise apartments. This stretch is in the “golden corridor” from Whitefield to ITPL, so it attracts many mid-level IT professionals.
4.5.2 Price & Rent Data
- Average Sale Price:
- Average Rent (2 BHK):
- ₹25,000 – ₹35,000 per month for a 2 BHK in a 5 + year-old apartment.
- Newer projects (Purva Palm Beach, Prestige Ozone) can fetch ₹40,000 – ₹45,000.
- ₹25,000 – ₹35,000 per month for a 2 BHK in a 5 + year-old apartment.
4.5.3 Calculating Yield
- Example: 1,000 sq ft at ₹9,000 per sq ft = ₹90 lakh; rent ₹30,000 × 12 = ₹3,60,000 → yield ≈ 4.0%.
- Yield Range: If you pick an older flat at ₹6,500 per sq ft with ₹27,000 rent, yield = 5.0%. Newer ₹10,000 per sq ft units with ₹40,000 rent → 4.8%.
- Why It Works:
- Middle-tier salary professionals (IT, BPO) looking for “good-enough” apartments near Outer Ring Road.
- Proximity to Marathahalli Junction bus depot, multiple BMTC and Vayu Vajra routes to the airport.
- A Cable Bridge (Hosakote Bridge) and upcoming Metro (Yellow Line extension) will boost demand further.
- Middle-tier salary professionals (IT, BPO) looking for “good-enough” apartments near Outer Ring Road.
5. HSR Layout vs. JP Nagar: Head-to-Head Comparison
Although both HSR Layout and JP Nagar are in South Bengaluru, their character, price points, and tenant profiles differ. Below is a side-by-side:
Price Variations: HSR’s newer apartments in sectors 2 and 3 can hit ₹11,000 per sq ft, while in 7th Phase JP Nagar, older builder floors are ₹7,000 per sq ft. So if you buy older stock in either area, yields can approach 6 % in HSR or 5 % in JP Nagar.- Tenant Preferences: HSR attracts slightly senior professionals (Wipro, SAP, Cisco), while JP Nagar’s core is mid-level employees (Infosys, IBM in Bannerghatta/Banashankari corridors). HSR families often choose gated complexes; JP Nagar tenants are comfortable in stand-alone towers or builder floors.
- Ease of Tenant Search: Both localities have low vacancy, but HSR’s tenant demand surges when ORR firms hire—tenants will often commute 10 km on the ORR shuttle bus. In JP Nagar, proximity to Green Line Metro (Jayanagar or RV Road) helps, but train commuters are fewer.
- Overall Verdict:
- HSR Layout: Slightly higher capital outlay but marginally better appreciation potential (gated communities, good schools, upcoming Metro). Yields around 4 – 6 % depending on age and pricing.
- JP Nagar (7th Phase): Cheaper entry price (₹8,000 per sq ft older stock) → higher immediate yield (~5 %). Steady but slightly lower appreciation.
- HSR Layout: Slightly higher capital outlay but marginally better appreciation potential (gated communities, good schools, upcoming Metro). Yields around 4 – 6 % depending on age and pricing.
6. Factors Driving High Rental Yields in These Areas
Several common factors explain why these Top 5 spots deliver yields in the 4 – 6 % band:
- Proximity to IT/Business Hubs
- HSR: Outer Ring Road, RGIPT, Wipro campus, SAP Labs (Whitefield-ORR corridor).
- JP Nagar (7th): Bannerghatta Road, Banashankari, Silk Board junction (access to Koramangala & Electronic City).
- Whitefield: ITPL, ITPB, EPIP.
- Electronic City: Infosys, Wipro, HCL campuses.
- Marathahalli: Many small IT parks, ORR, Marathahalli Junction.
- HSR: Outer Ring Road, RGIPT, Wipro campus, SAP Labs (Whitefield-ORR corridor).
- Why it matters: Tenants want to cut commute time—anywhere from 5 – 20 minutes’ drive. This stable demand keeps occupancy near 95%, letting landlords charge premium rents.
- Infrastructure & Connectivity
- Metro Access (Soon): HSR’s Yellow Line extension by 2026; JP Nagar benefits indirectly from the Green Line; Marathahalli will link to the Airport Metro Line; Electronic City is on Phase 1 of the Elevated Corridor (tested for feeder service).
- ORR & NICE Road: Fast lanes to Koramangala, Baiyappanahalli, Outer Ring Road. Whitefield & Marathahalli have direct ORR access; HSR is a 5–7 minute drive from ORR.
- Bus Routes: BMTC Vayu Vajra (airport buses) and Metro feeder buses connect all five spots.
- Metro Access (Soon): HSR’s Yellow Line extension by 2026; JP Nagar benefits indirectly from the Green Line; Marathahalli will link to the Airport Metro Line; Electronic City is on Phase 1 of the Elevated Corridor (tested for feeder service).
- Social Infrastructure
- Schools: HSR (New Horizon, Indus International), Whitefield (DPS, Vydehi), JP Nagar (National Public School, IIM-B campus area), Electronic City (Sri Chaitanya, Akash International), Marathahalli (National Academy).
- Hospitals: HSR (Manipal, Apollo), Whitefield (Columbia Asia), Marathahalli (Fortis, Rainbow Children’s), JP Nagar (Apollo, BGS Global), Electronic City (Spandana Hospital).
- Malls & Retail: Forum Mall (Whitefield), Total Mall & Royal Meenakshi Mall (JP Nagar), Phoenix Marketcity (Whitefield).
- Schools: HSR (New Horizon, Indus International), Whitefield (DPS, Vydehi), JP Nagar (National Public School, IIM-B campus area), Electronic City (Sri Chaitanya, Akash International), Marathahalli (National Academy).
- Why it matters: Families and working couples look for nearby schools and hospitals, giving landlords confidence that long-term tenants will stay 2–4 years or more.
- Older Stock vs. Newer Projects
- In HSR, older apartments (10 + years) cost ₹7,000 – ₹8,000 per sq ft but still rent ₹24,000 – ₹26,000 → yields near 6 %.
- JP Nagar’s 7th Phase older builder floors (8 – 12 years) are ₹7,000 per sq ft with ₹22,000 – ₹24,000 rent → yields ~ 5 %.
- Whitefield: Older units (2010–2013) priced ₹8,000 per sq ft with ₹28,000 rent → ~ 5 – 6 %.
- Electronic City & Marathahalli operate similarly: older stock fetchs higher yield if you can secure a good price.
- In HSR, older apartments (10 + years) cost ₹7,000 – ₹8,000 per sq ft but still rent ₹24,000 – ₹26,000 → yields near 6 %.
- Vacancy & Tenant Pool
- Low vacancy (often 5% or less) in these pockets means landlords don’t lose rental days.
- Steady influx of new graduates and project professionals replacing those whose jobs have ended keeps demand almost constant.
- Low vacancy (often 5% or less) in these pockets means landlords don’t lose rental days.
- Affordable Entry Points
- These spots have entry points under ₹7,000 – ₹8,000 per sq ft if you target 10 – 12 year-old apartments. That makes the denominator smaller in the yield calculation, boosting yield.
- These spots have entry points under ₹7,000 – ₹8,000 per sq ft if you target 10 – 12 year-old apartments. That makes the denominator smaller in the yield calculation, boosting yield.
7. Tips for Maximizing Rental Yield
- Buy Older, Well-Maintained Stock
- Buildings 8–12 years old often sell at ₹6,500 – ₹8,500 per sq ft (vs. ₹10,000 + for new launches). With rent holding steady at ₹25,000 – ₹30,000 per month, you unlock yields near 5 – 6 %.
- Buildings 8–12 years old often sell at ₹6,500 – ₹8,500 per sq ft (vs. ₹10,000 + for new launches). With rent holding steady at ₹25,000 – ₹30,000 per month, you unlock yields near 5 – 6 %.
- Furnish Wisely
- A fully furnished unit can command 10 – 15% higher rent. Invest in modular kitchen, wardrobes, and ACs. The extra rent recoups your furnishing cost in 12–18 months.
- A fully furnished unit can command 10 – 15% higher rent. Invest in modular kitchen, wardrobes, and ACs. The extra rent recoups your furnishing cost in 12–18 months.
- Target 2 BHK Units
- Most tenant demand is for 2 BHKs (working couples, small families, WFH professionals need one bedroom as office). 1 BHKs see lower rent (₹15,000–₹18,000), so yields drop. 3 BHKs may struggle to attract small families unless rent is low enough.
- Most tenant demand is for 2 BHKs (working couples, small families, WFH professionals need one bedroom as office). 1 BHKs see lower rent (₹15,000–₹18,000), so yields drop. 3 BHKs may struggle to attract small families unless rent is low enough.
- Stay Close to Metro or Major Bus Stops
- Apartments within a 500 m radius of a future Metro station (HSR Yellow Line, JP Nagar Green Line) can charge a 5 – 10% premium. Even if the line is not yet operational (HSR’s Yellow Line expected by 2026), markets price that in.
- Apartments within a 500 m radius of a future Metro station (HSR Yellow Line, JP Nagar Green Line) can charge a 5 – 10% premium. Even if the line is not yet operational (HSR’s Yellow Line expected by 2026), markets price that in.
- Lease to Company‐Sponsored Tenants
- Some IT firms (Infosys, Wipro, Cisco) maintain a list of recommended apartments. If you get on that list, you’re likely to have a long-term tenant backed by the company’s housing allowance—higher security and fewer payment delays.
- Some IT firms (Infosys, Wipro, Cisco) maintain a list of recommended apartments. If you get on that list, you’re likely to have a long-term tenant backed by the company’s housing allowance—higher security and fewer payment delays.
- Monitor Maintenance & Keep the Unit “Ready to Rent”
- Quick turnaround between tenants (1–3 days max) prevents revenue loss. Stock up on basic spares (tap washers, light fittings) so that small fixes don’t delay move-ins.
- Quick turnaround between tenants (1–3 days max) prevents revenue loss. Stock up on basic spares (tap washers, light fittings) so that small fixes don’t delay move-ins.
- Use a Reputable Property Manager
- Professional managers (NoBroker, NestAway, PropertySimplify) can reduce vacancy days by marketing immediately, screening tenants, and ensuring on-time rent collection. Their fee (~5 – 8% of monthly rent) is often offset by reduced vacancy and better tenant quality.
- Professional managers (NoBroker, NestAway, PropertySimplify) can reduce vacancy days by marketing immediately, screening tenants, and ensuring on-time rent collection. Their fee (~5 – 8% of monthly rent) is often offset by reduced vacancy and better tenant quality.
8. Frequently Asked Questions
Q1. Is a 4 % yield in Bengaluru considered good?
- Answer: In 2025, a 4 % yield is the bare minimum for a stable, mid-segment area in central or South Bangalore. Areas like Whitefield, HSR, or Marathahalli can push to 5 – 6 % if you pick older stock. So if you’re booking a new launch at ₹12,000 per sq ft and rent ₹30,000, yield = 3 %—that’s too low. Go for older resale in the same locality for higher yield.
Q2. Should I choose HSR or JP Nagar if I want higher yield?
- Answer: Typically, JP Nagar (7th Phase) older resale units yield around 5 % (₹7,000 per sq ft → ₹25,000 rent). HSR’s older stock (₹7,000 per sq ft → ₹24,000 rent) can yield around 6 % if you buy in the right sector. But modern HSR apartments (₹11,000 per sq ft) with ₹30,000 rent yield 3.5 %. So for pure yield, look for 10+ year old flats in HSR or 7th Phase JP Nagar.
Q3. Will future Metro lines affect these yields?
- Answer: Yes. HSR’s Yellow Line (Bommasandra–KR Puram) passing through HSR (2nd Sector) will likely raise rental by 10 – 15% once operational (estimated late-2026). Similarly, the Green Line’s extension to Jayanagar and a proposed Marathahalli–Whitefield corridor can lift rental demand in both JP Nagar and Marathahalli. If you buy now (mid-2025) within 500 m of planned stations, you lock in a higher yield when Metro service starts.
Q4. How do tenant preferences differ between HSR and JP Nagar?
- Answer:
- HSR Layout: Tenants often include senior IT managers or small families who want quick ORR access. They look for amenities like a gym, pool, and power backup. 2 BHKs near park frontage or clubhouse command the top rent.
- JP Nagar: A mix of mid-level employees and small nuclear families. They care more about proximity to Bannerghatta Road schools/hospitals and straightforward connectivity to Jayanagar/RV Road. Builder floors (15–20 years old) with separate entrances and ground-floor loans (₹22,000–₹25,000) still rent steadily.
- HSR Layout: Tenants often include senior IT managers or small families who want quick ORR access. They look for amenities like a gym, pool, and power backup. 2 BHKs near park frontage or clubhouse command the top rent.
Q5. Can I expect yields to drop in 2026?
- Answer: Market watchers predict price growth of 5 – 7 % in these neighborhoods, but rental growth is forecast at 3 – 5 % in 2026. If prices outpace rent growth, yields could compress slightly (e.g., yield goes from 5 % to 4.5 %). That said, strong tenant demand in tech-driven areas tends to support rents, so drops below 4 % are unlikely unless you overpay or buy a brand-new launch.
9. Summary of Top 5 Rental Yield Spots
| Rank | Locality | Avg. Price (₹/sq ft) | Avg. Rent (₹/month) | Yield (%) | Highlights |
| 1 | HSR Layout | ₹7,000 – 11,550 | ₹26,000 – ₹30,000 | 4 – 6 | ORR access, schools, upcoming Metro, older stock yields 6 % |
| 2 | 7th Phase JP Nagar | ₹7,000 – 8,300 | ₹24,000 – ₹28,000 | ~ 5 | Bannerghatta Rd, Green Line access, strong 10–12 year old deals |
| 3 | Whitefield | ₹7,000 – 10,000 | ₹30,000 – ₹40,000 | 4 – 6 | ITPB/EPIP, expat demand, top schools, upcoming metro |
| 4 | Electronic City | ₹5,000 – 8,000 | ₹18,000 – ₹28,000 | 4 – 6 | Infosys, Wipro campuses, Nice Road, PRR upcoming |
| 5 | Marathahalli | ₹6,500 – 9,500 | ₹25,000 – ₹35,000 | 4 – 6 | ORR corridor, mid-segment IT, upcoming Blue Line |
10. Conclusion
If you’re looking at “rental yield Bangalore”, these five localities stand out in mid-2025. HSR Layout and 7th Phase JP Nagar remain strong yield generators if you pick older resale flats at ₹7,000 – ₹8,000 per sq ft. Whitefield, Electronic City, and Marathahalli offer a large tenant pool from tech parks, putting their yields in the 4 – 6 % bracket.
Key Takeaways:
- For highest yield: Target 8–12 year old flats in HSR or JP Nagar that trade at ₹7,000 – ₹8,500 per sq ft but still rent ₹24,000 – ₹28,000 per month → yields ≈ 5 – 6 %.
- Buy near upcoming Metro: HSR’s Yellow Line and JP Nagar’s Green Line add a 10 – 15% rent premium when operational.
- 2 BHK is sweet spot: Highest demand → shortest vacancy → stable rent.
- Furnish selectively: Basic modular kitchen + wardrobes + ACs can boost rent by 10 – 15%, improving effective yield.
By weighing HSR vs. JP Nagar, you see HSR’s slightly higher appreciation potential, while JP Nagar offers a marginally better immediate yield (≈ 5 %). Ultimately, both are solid bets for a 4 – 6% rental yield if you do your homework, check broker-verified deals, and buy at the right price.
Source : Fulinspace.com