Five Bengaluru micro-markets that apartment buyers and investors should look out for in 2026

Infrastructure-led development and improving liveability are driving buyer decisions, with pockets near the airport gaining prominence. Devanahalli, situated near Kempegowda International Airport, is increasingly being regarded as a long-term appreciation market. The area is attracting growing interest from Grade A developers, encouraged by major infrastructure projects and the northward shift of commercial activity, they said.

At the same time, despite relatively higher prices, Whitefield and Sarjapura Road along the eastern IT corridor continue to remain favoured among investors focused on rental income, supported by sustained IT and commercial development in the region, they said.

According to a report by JLL India, several key factors are driving residential investment in Bengaluru. Job-led migration remains a strong underlying force, with the city’s position as India’s technology capital ensuring steady inflows of professionals, which in turn support both rental demand and first-time homebuyer activity.

Infrastructure development is another major catalyst. The announcement and execution of metro corridors, including the Hebbal–Sarjapur and ORR-linked lines, along with peripheral road upgrades and improved last-mile connectivity, are lifting property values in micro-markets along these routes. Studies and developer analyses indicate that homes located near upcoming metro alignments often outperform less-connected areas by 5–25%.

Also Read: Year-ender 2025: Here’s how airport corridors fuelled real estate demand across NCR, Mumbai and Bengaluru markets

At the same time, both premium and mid-segment housing remain active. While luxury inventory has expanded, mid-income apartments remain the preferred choice for most investors, offering a balance between affordability and stable rental yields.

Real estate experts predict that property buying decisions in 2026 will increasingly depend on whether the purchase is for investment or personal use. “For appreciation, the north belt, Hebbal, Devanahalli and surrounding areas, offers 20–25% year-on-year potential in select pockets,” Sunil Singh, director at Realty Corp, said. For end-users, areas such as Thanisandra, Jakkur, and East Bengaluru remain among the most preferred due to improving infrastructure and livability.

Real estate developers also say that everyday liveability, efficient layouts and flexibility are now central to homebuyers’ decision-making. This shift, Karishmah Siingh, president of sales, marketing and CRM at Sattva Group, said, is also influencing location choices, with infrastructure-led corridors and emerging micro-markets.

“Purchase decisions are increasingly shaped by delivery certainty, quality of construction and well-planned developments,” Singh said.

“Entry prices in Yelahanka today are around ₹16,000–17,000 per sq ft,” Rao said. A 2BHK apartment typically costs around ₹1.8 crore, while a 3BHK apartment is priced at around ₹2.3 crore. Rental demand remains steady, with 3BHK homes of around 1,800 sq ft fetching ₹70,000 to ₹1 lakh a month, and 2BHKs commanding rents of about ₹45,000, he said.

“Entry prices here range between ₹12,000 and ₹14,000 per sq ft,” Rao said. A 2BHK typically costs ₹1.2–1.3 crore, while a 3BHK is priced between ₹1.8 crore and ₹2 crore. While distance from the city centre remains a concern, rental demand is steadily improving. “Good communities are seeing minimum rents of ₹30,000–35,000 for 2BHKs, and ₹35,000–45,000 for 3BHKs, with some even touching ₹50,000,” he said.

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According to Singh, entry prices for a 2BHK range between ₹15,000 and ₹18,000 per sq ft, with starting prices from around ₹1.2 crore. Rental demand remains strong, with 2BHKs fetching at least ₹40,000 a month, while 3BHK rents of ₹50,000 and above are considered standard in well-located projects.

Singh noted that “buyers looking for maximum rental returns should focus on Whitefield and Sarjapura, where demand from professionals remains steady.”

However, rental demand is relatively subdued due to limited commercial activity. “Occupancy is lower compared to IT hubs, with 2BHK rents around ₹25,000–30,000 and 3BHKs near ₹40,000,” Rao said, adding that the area is better suited for price-sensitive end-users rather than rental-focused investors.

“Malleshwaram retains the old Bengaluru character and remains highly sought after,” Rao said. Entry prices are around ₹18,000 per sq ft, nearly on par with Indiranagar and Koramangala. In these areas, most transactions are in resale properties, with even eight-year-old apartments in Koramangala starting at ₹20,000 per sq ft, he added.

Also Read: Year-ender 2025: Bengaluru’s rental market faces backlash over high security deposits and opaque deductions

Equally important is social infrastructure, as proximity to schools, hospitals, malls and daily conveniences reduces vacancy risk and attracts end-users. Established residential hubs, such as Whitefield, HSR Layout, and Indiranagar, score well on this parameter. Developer credibility and construction quality also play a decisive role, especially in fast-growing corridors where standards can vary widely, making reputed developers a safer choice for new launches. A clear exit strategy is essential, as resale liquidity differs significantly across micro-markets, with established areas like Indiranagar and Whitefield typically offering smoother exits than newer peri-urban locations, according to the report.

Regulatory due diligence cannot be overlooked. Investors must confirm RERA registration, clear land titles and realistic possession timelines, and in infrastructure-led locations, verify land acquisition details. Announcements alone are insufficient; visible progress, such as contractor mobilisation, utility shifting or tender awards, signals real momentum. Micro-market checks should include physically visiting the locality, tracking rental listings and speaking with local agents and residents.

Monitoring inventory levels is also crucial, since high unsold stock can cap near-term appreciation. Finally, investors should factor in financing costs, interest rates and holding expenses to calculate realistic returns and IRR, avoiding excessive leverage in volatile micro-markets, the report noted.