Rental rates in Bengaluru Skyrockets! High Demand for 1BHKs

While 2BHK flats in Bengaluru earn about 3-4%, 1BHK apartments usually yield above 5%, making them a desirable investment choice.

There is still a high demand for one-bedroom apartments in Bengaluru's downtown and IT districts, especially from young professionals and students moving for work. Due to high demand and limited supply, developers have reduced the size of these flats during the last two years, but investors and end users still find them appealing. 1BHKs have emerged as a top investment option due to steady rental demand and rental yields above 5%.

Srinivas Gowda who relocated to Bengaluru’s prime HSR Layout to be closer to his workplace says, “The rents here are insane. I saw a semi-furnished 400 sq ft one-bedroom apartment costing around Rs. 35,000 per month. I thought that rents were high in Mumbai, but I’m surprised to find this in Bengaluru”.
Ten years ago, there were not many 1BHK apartments in Bengaluru, and the ones that were available were really roomy. Today's new releases are much smaller, yet they fetch higher rentals, according to Sunil Singh, Director of Realty Corp.

The average carpet area of recently constructed 1BHK flats in Bengaluru has dropped by almost 8%, from 380 square feet in 2023 to 350 square feet in 2024, according to statistics from SquareYards.

According to Sopan Gupta, Principal Partner at Square Yards, the 1BHK apartments are popular with investors and end users because of their consistently high rental demand from working professionals and comparatively smaller ticket sizes.

While 2BHK flats in Bengaluru provide about 3-4% rental income, 1BHK apartments usually give above 5%, making them a desirable investment option.

According to real estate specialists, the average monthly rental price for a two-bedroom flat is between Rs. 25,000 and Rs. 30,000. Developers can double their rental income, though, if they split them into two distinct 1BHKs and charge at least Rs. 20,000 each unit.

Kiran Kumar, Vice President of Hanu Reddy Realty says, “The demand for 1BHKs in the city centre and standalone areas has surged by at least 20% in the past year. As a result, many landlords are redeveloping their existing properties into multiple 1BHK units”.