City benchmark · July 2026 · free calculator
Rental Yield in Bengaluru
Bengaluru gross rental yield
3.0–3.6%
Premium/luxury segment · luxury avg 2.6–4% · source: Sobha
Premium/luxury segment gross yields (Sobha, 2026). Mid-market and tier-2 property can yield differently; other published series using asking prices report higher citywide figures.
The strongest premium-segment yield among India's major metros, underpinned by IT-corridor employment demand. Enter your own property below to get its gross and net yield.
Educational calculators — always consult a licensed professional before making financial decisions.
Current market value or what you'd pay.
Gross rent you collect each month.
For net yield. Estimate as a % of rent, or enter your own total.
Typical range 20–25% for long-term rentals.
Tax + insurance + maintenance + management + repairs. Exclude mortgage.
Net Rental Yield
2.9%
Gross yield 3.8% · ₹3,00,000 rent/yr
■ Net yield ■ Gross yield — versus the IN healthy band.
Yield excludes mortgage payments and income tax. Net yield uses your cost estimate — refine it for a precise figure. Estimate only; consult a licensed professional.
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What a 3.0–3.6% yield means in practice
At 3.0–3.6% gross, a Bengaluru property will almost certainly run negative cash flow if you finance it. Home-loan rates in India sit comfortably above that yield, so the EMI exceeds the rent from the first month. This is not evidence that you have found a bad flat — it is the structural condition of financed metro rentals across India, and Bengaluru is no exception.
What it does mean is that your return has to come from somewhere other than income: capital appreciation, the principal your tenant quietly pays down each month, and the tax treatment — the flat 30% standard deduction on net annual value under Section 24(a) and home-loan interest under Section 24(b). If you are buying for monthly income, the yield is telling you something important. If you are buying for a 10-year hold, it is telling you much less than you think.
Also remember this is the gross figure. Net yield — after municipal property tax, society and maintenance charges, insurance, and repairs — typically lands 20–35% lower. Use the calculator above with your real costs, then model the full hold including the eventual sale with the rental property calculator.
Bengaluru vs other Indian cities
| City | Gross yield |
|---|---|
| Bengaluru (this page) | 3.0–3.6% |
| Hyderabad | 3.0–3.5% |
| Gurgaon | 3.0–3.5% |
| Pune | 3.0–3.4% |
| Greater Noida | 3.0–3.4% |
| Chennai | 2.8–3.2% |
| Mumbai | 2.0–2.6% |
Source: Sobha (2026), premium/luxury segment. Benchmarks are directional, move over time, and vary sharply by micro-market — the spread within a city is often wider than the gap between cities. See the full rental yield by city guide.
Frequently asked questions
What is the rental yield in Bengaluru?+
Bengaluru's premium/luxury-segment gross rental yield runs approximately 3.0–3.6% (Sobha, 2026). The strongest premium-segment yield among India's major metros, underpinned by IT-corridor employment demand. Note this figure covers the premium segment specifically, not a citywide all-segment average — mid-market and tier-2 property can yield differently, and other published series that use asking prices report higher citywide figures. Gross yield is annual rent divided by property value; your net yield after municipal tax, society charges, insurance and repairs will typically land 20–35% lower.
Is Bengaluru a good city for rental investment?+
It depends on what you want the property to do. At 3.0–3.6% gross, Bengaluru is unlikely to cash-flow positive if you finance it, because home-loan rates sit above that yield — the EMI will exceed the rent. The investment case rests on capital appreciation, tenant-funded loan paydown, and the tax deductions under Sections 24(a) and 24(b). If you need monthly income rather than long-term growth, judge it against that, not against the yield headline.
How does Bengaluru compare to other Indian cities?+
Across India's major metros, premium-segment yields cluster in a fairly narrow band — Sobha reports luxury rentals averaging 2.6–4%, with Bengaluru and Hyderabad at the stronger end (around 3.0–3.6%) and Mumbai at the weakest (2.0–2.6%), where prices are most extreme relative to rents. The comparison table on this page shows every city we have a verified figure for.
Should I use gross or net yield to decide?+
Net yield. Gross yield ignores costs entirely, which is exactly why it appears in advertisements. Net yield subtracts municipal property tax, society and maintenance charges, insurance, and repairs — and usually lands 20–35% below the gross figure. Calculate your own rather than trusting a listing's headline number.