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Rental Yields in Bengaluru: What a Luxury Property Really Earns

Gross yield is the number brochures quote. This is what a luxury property in Bengaluru earns after the costs nobody prints.

99Habitat Research · 28 Aug 2026 · 6 min read

Luxury residential architecture in Bengaluru, India

In short

Well-chosen luxury property in Bengaluru produces 3.5–4.5% gross, with the shortest vacancy periods in india. Net returns typically land one to two percentage points lower after management, service charges and vacancy.

The gross number

3.5–4.5% gross, with the shortest vacancy periods in India in Bengaluru. That is the number to start from, not the number to plan with.

Bengaluru's prime residential demand is driven by technology salaries and a genuinely deep leasing market — which makes it the steadiest income market for NRI owners in India.

What comes off the top

Service charges, management fees, letting commission, insurance, maintenance reserve and void periods. In prime markets these routinely absorb a fifth to a third of gross rent, and service charges on branded or amenity-heavy buildings are the most commonly underestimated line.

Tax matters too: stamp duty and registration; rental income taxable in india

Where the demand actually is

Indiranagar & Koramangala: Central, highest lifestyle demand.

Whitefield & Sarjapur: Technology corridor; strongest leasing volume.

Hebbal & North Bengaluru: Airport corridor, infrastructure-led.

How we underwrite it

Ten months of occupancy, three years of comparable evidence, and a resale assumption of flat real pricing. If the case only works on twelve months and rising rents, it is not a case — it is a hope.

Water and approval status vary sharply by micro-market. Verify khata and plan sanction.

References

This article is general information, not investment, tax or legal advice. Rules change — confirm current requirements with qualified counsel before you transact.

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