Bengaluru's soaring rents worry residents, but THESE areas still offer affordable housing

Rental yield refers to the annual income generated from a rented property as a percentage of its market value, and in Bengaluru, it's become increasingly lucrative.

Rent in Bengaluru

As Bengaluru strengthens its hold as India's IT capital, residents are grappling with increase in apartment rental prices. In several parts of the city, rents have surged by as many as 30–40%—and in some premium pockets, by as much as 50% over the past year—leaving many tenants struggling to keep up.

The spike is largely driven by a growing mismatch between demand and supply, along with high rental yields that have incentivised landlords to hike rates. Rental yield refers to the annual income generated from a rented property as a percentage of its market value, and in Bengaluru, it's become increasingly lucrative.

Despite the steep climb, local real estate experts point to several localities that continue to offer relatively budget-friendly rental options. Here are five key zones in the city where affordable apartments are still within reach:

1. North Bengaluru:

North Bengaluru is emerging as a go-to choice for tenants seeking affordability with access to tech parks. Areas such as Kammanahalli, Hennur, and Kothanur, along with the stretch from Manyata Tech Park to Jakkur, offer 2 BHK apartments for Rs 25,000 to Rs 30,000, while 3 BHK flats start from Rs 35,000 per month. Devanahalli, close to the airport, also offers gated communities at competitive rents starting from Rs 25,000. However, poor last-mile connectivity remains a concern.

2. Eastern suburbs:

KR Puram, Budigere Cross, and Varthur, located near the eastern IT corridor, offer great value. In Varthur, which borders the Whitefield tech zone, a 2 BHK flat in a gated society can be found for just Rs 20,000 to Rs 25,000 per month.

3. Central Bengaluru:

While areas like MG Road and Indiranagar command sky-high rents, nearby neighborhoods such as Frazer Town, Cooke Town, Banaswadi, Lingarajapuram, and Cox Town still offer reasonable deals. Rentals range from Rs 20,000 to Rs 35,000 for a 2 BHK, and Rs 40,000 to Rs 50,000 for a 3 BHK.

4. South Bengaluru:

In the southern part of the city, localities around JP Nagar and Kanakapura Road present a cost-effective alternative. A 2 BHK flat here can go for under Rs 25,000, while standalone buildings offer even cheaper options. A 3 BHK in these zones usually falls between Rs 30,000 and Rs 35,000 per month.

5. Other affordable areas:

Yeshwanthpur (northwest), Rajarajeshwari Nagar (southwest), and Mysore Road (south) are also worth considering. These areas offer good metro connectivity and proximity to IT hubs, with 2 BHK units renting for Rs 25,000–Rs 30,000, and 3 BHKs available for under Rs 40,000.