Bengaluru real estate: Is the North or East a better investment option?

As Bengaluru’s real estate market continues to grow, experts weigh in on two of the city’s booming real estate hubs in the North and the East.

While East Bengaluru boasts strong rental yields (almost 4.5%), established IT hubs, and well-developed infrastructure, experts note that property prices in the area have already reached near-peak levels in recent years.

In contrast, North Bengaluru is still in a high-growth phase, with upcoming infrastructure projects, emerging employment hubs, and rising demand suggesting strong potential for long-term capital appreciation, say real estate experts.

East Bengaluru: High rental yields but infrastructure challenges persist

East Bengaluru has long been a preferred destination for homebuyers and investors, largely due to its proximity to major IT hubs like Whitefield, Marathahalli, and Outer Ring Road. Over the past decade, the area has seen significant infrastructure development, including tech parks, metro connectivity, and premium residential projects.

This maturity has translated into strong rental demand. Experts say rental yields in East Bengaluru hover around 4% to 4.5%, driven by a steady influx of working professionals and robust social infrastructure. Gated communities, international schools, malls, and hospitals make it a self-sustaining zone.

However, experts say that property prices here have already appreciated significantly. Over the past three years, rates have climbed to near-peak levels, reducing the scope for aggressive capital appreciation in the short term.

In Varthur, located in the southeast part of the city, apartments are priced between ₹80 lakh and ₹1 crore. For example, Prestige is offering new 2BHK units at ₹9,500 per sq. ft., which means a typical 1,100 sq. ft. apartment would cost around ₹1.2 crore. Rentals in this area are higher, with 2BHK units commanding over ₹25,000 per month, Kiran Kumar of Hanu Reddy Realty said.

Whitefield, one of the most sought-after localities due to its proximity to major IT parks, has limited inventory. New branded apartments here are priced at ₹12,000– ₹13,000 per sq. ft. or more. Premium 2BHK and 3BHK homes in this area often cross ₹1.5 crore to ₹2 crore, and monthly rentals typically exceed ₹30,000.

However, experts point out that East Bengaluru continues to face challenges such as water shortages, as much of the city's piped water supply does not reach this part of the city. Additionally, heavy traffic congestion remains a major issue, making daily commuting difficult for residents.

Also Read: Bengaluru and Delhi-NCR housing sales dip amid price hikes and job worries

North Bengaluru

In contrast, experts said that North Bengaluru is still in a high-growth phase. The region, which includes areas like Hebbal, Yelahanka, Jakkur, and Devanahalli, is seeing a surge in real estate interest with large infrastructure projects in the pipeline and upcoming employment zones.

The expansion of Kempegowda International Airport, the upcoming suburban rail network, and proposed tech parks near Devanahalli have added to the area's appeal. Several developers have launched projects at more affordable rates compared to East Bengaluru, making it attractive for long-term investors.

They said North Bengaluru has a mix of upcoming residential projects and rising demand for rental homes. The region offers both long-term growth and steady rental income.

The area is witnessing an appreciation of 20–25% annually, while land prices have seen a jump—especially in areas like Nandi Hills and Devanahalli, Sunil Singh, director at Realty Corps said.

“For instance, just after the COVID-19 lockdowns, plots near Nandi Hills were selling for around ₹3,500 per sq. ft. Today, the same plots are priced at ₹7,000– ₹8,000 per sq. ft.,” said a local real estate agent.

In terms of entry points, apartments in North Bengaluru typically start at around ₹70 lakh. For plots, the price in areas like Hennur ranges from ₹80 lakh to ₹90 lakh for 1,000 sq. ft. Monthly rentals in these locations average ₹25,000 to ₹30,000, offering decent returns for investors.

In contrast, premium pockets like Hebbal command much higher rents. A 2BHK in this tech-driven corridor can fetch around ₹40,000 per month. However, the cost of entry is also significantly higher ranging between ₹1.5 crore to ₹2 crore, said local brokers.

Overall, experts say North Bengaluru offers a range of investment options depending on budget and risk appetite—from high-yield rentals to fast-appreciating land.

Despite its rapid growth and rising investor interest, North Bengaluru continues to grapple with infrastructure challenges. Key issues include inadequate road connectivity in emerging localities, limited access to public transport, and delays in the execution of planned infrastructure projects such as the Peripheral Ring Road and metro extensions.

Also Read: Bengaluru real estate: Is Devanahalli the IT capital’s Gurugram in the making?

Investment Outlook

Experts said that while East Bengaluru offers stability and strong rental income, North Bengaluru is being seen as a future-ready investment zone with long-term potential for capital appreciation.

East Bengaluru remains a solid bet for investors focused on rental returns and ready-to-move-in properties. However, for those looking at long-term growth, particularly over a 5 to 10-year horizon, North Bengaluru may offer better returns as the area matures.

Brokers recommend that investors hold on for at least five years to see optimal returns, especially for land investments. For apartments, some projects offer opportunities for resale in two phases: once the project is sold out and when residents start moving in—both offering good chances for capital gains.

Singh said that ready-to-move-in (RTMI) 2BHK apartments in gated, Grade A communities in east Bengaluru can fetch a rental income of up to ₹45,000 per month. The purchase cost for such flats is typically around ₹1.4– ₹1.5 crore for 1,000 sq. ft. units.

While RTMI properties come at a premium, they offer immediate rental returns. In many cases, projects in East Bengaluru appreciated by nearly 25% between the launch and possession stages, said brokers.