Rental Yield in Bangalore: Which Localities Offer the Best Returns?
Bangalore, known as the Silicon Valley of India, attracts lakhs of professionals every year. With rising demand for housing, rental yields in Bangalore are among the most attractive in the country. For investors, knowing which areas offer the best rental returns can make all the difference between average ROI and long-term wealth creation.
In this article, we explore the top localities in Bangalore with high rental yields and why they are investor favorites in 2025.
What Is Rental Yield and Why Does It Matter?
Rental yield is the annual rental income earned from a property, expressed as a percentage of its purchase price.
Formula:
📌 Rental Yield (%) = (Annual Rent ÷ Property Value) × 100
In Bangalore, average rental yields range between 3% to 5%, but in certain hotspots near IT corridors and metro lines, returns can be much higher.
Best Localities in Bangalore for Rental Yield (2025)
Whitefield
Why it’s hot: Major IT parks, tech companies, and metro connectivity.
Rental yield: 4% – 5%
Demand drivers: Young professionals, expats, and families.
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Electronic City
Why it’s hot: Hub of IT giants like Infosys, Wipro, and Tech Mahindra.
Rental yield: 4.5% – 5.5% (among the highest in Bangalore).
Demand drivers: Huge inflow of IT workforce + affordability.
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Hebbal & North Bangalore
Why it’s hot: Proximity to Kempegowda International Airport + upcoming metro and expressway.
Rental yield: 3.5% – 4.5%
Demand drivers: Premium apartments, villas, and rising commercial hubs.
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HSR Layout & Bellandur (Outer Ring Road)
Why it’s hot: Surrounded by IT hubs on ORR, start-up ecosystem, and high rental demand.
Rental yield: 4% – 5%
Demand drivers: Co-living spaces, working professionals, and families.
Koramangala
Why it’s hot: A mix of start-ups, co-working hubs, nightlife, and student population.
Rental yield: 3.5% – 4.5%
Demand drivers: Students, entrepreneurs, and young professionals.
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How Investors Can Maximize Rental Yield in Bangalore
Choose areas near IT corridors & metro staChoose areas near IT corridors & metro stations – consistent tenant demandtions – consistent tenant demand
Invest in mid-segment 2BHK apartments – best ROI balance.
Opt for reputed developers – ensures better resale value and rental appeal.
Leverage property management services to reduce vacancy periods.
Contact Al Rida Real Estate for end-to-end investment support.
Conclusion – Bangalore’s Best Rental Income Localities
With strong IT-driven demand and infrastructure growth, Bangalore offers some of the best rental yields in India. Localities like Electronic City, Whitefield, Hebbal, HSR Layout, and Bellandur are excellent choices for investors aiming at long-term ROI.
If you’re planning to invest in high-yield rental properties in Bangalore, now is the right time to act before prices surge further.