A 1 BHK at Kalyani LivingTree costs about ₹44.12 lakh all-in on reported pricing. To clear a 4% gross yield it needs roughly ₹14,700 a month. Here is how that compares with everything else we cover, and what could go wrong.

The arithmetic

Start with what you actually spend. On a reported ₹41.47 lakh, statutory charges come to about ₹2.65 lakh — 1% GST, 3% stamp duty, cess, surcharge and 2% registration. All-in: ₹44.12 lakh, before floor rise, parking and deposits.

Gross yield is annual rent divided by that number. So:

3% gross needs about ₹11,000 a month. 4% gross needs about ₹14,700. 5% gross would need about ₹18,400.

Those are gross figures. Net yield after maintenance, property tax, periodic vacancy and repairs typically runs 1 to 1.5 percentage points lower, so a 4% gross is closer to 2.5 to 3% net in the hand.

Compare that against what the money would do elsewhere before deciding it is good. A fixed deposit pays more than 2.5% net with no vacancy, no tenant and no maintenance. The case for property rests on the capital appreciation and the leverage — you can borrow 80% against a flat and nobody will lend you that against a deposit — not on the rental return by itself. Anyone selling you a flat purely on yield is leaving out the comparison that matters.

How that compares with everything else

This is where the small unit earns its place, and the contrast is stark.

A ₹4.84 Cr flat at Sobha Infinia in Koramangala would need about ₹1.61 lakh a month for the same 4% gross. A ₹1.90 Cr flat at Tata Varnam would need about ₹63,000. Both are demanding numbers for their markets.

₹14,700 a month for a new 1 BHK on the airport corridor is a far more ordinary ask. That is the structural reason small units in affordable projects produce better yields: rents do not scale down as fast as prices do.

The flip side is capital growth. Larger homes in lower-density projects have historically appreciated faster in Bengaluru. You are choosing income over growth, and that is a legitimate choice as long as you make it deliberately.

Who actually rents here

Bagalur sits on the airport corridor, near the KIADB aerospace and hardware park cluster. The tenant pool is specific: airport and airline staff, aerospace and manufacturing employees, and younger workers priced out of Hebbal and Yelahanka.

For a 1 BHK that is a good match. Single people and couples on moderate incomes who need to be near that employment are exactly the tenants a small new unit attracts, and they tend to stay while the job lasts.

The risk is concentration. A tenant pool built on one employment cluster is thinner than one serving a diversified city centre. If that cluster contracts, or hybrid working reduces the need to live nearby, demand softens faster here than it would in a more varied market. Our Bagalur and KIADB Aerospace Park locality guide goes into what is actually there.

The competition problem

Here is the risk most yield calculations ignore entirely.

If the reported 2,522 homes is right, and a large share are 1 and 2 BHK, then when a phase completes, several hundred near-identical units become available for rent at the same moment — many bought by investors with the same spreadsheet you are using.

Expect rents to be soft in the first six to twelve months after each handover. Some owners will accept below-market rent rather than hold an empty flat, and that sets the reference point for everyone.

Plan for it. Budget for two to three months of vacancy in your first year, and do not model your EMI on the assumption of day-one occupancy at a full market rent. The yields above assume a let flat; an empty one yields nothing while the EMI continues.

What would make this work

Four things, and three are within your control.

Buy in an early phase. Completing before the bulk of the project means less simultaneous competition at your handover.

Get a car park. A 1 BHK with parking lets faster and for more than one without, particularly here where street parking is not realistic.

Furnish it. In this tenant segment a furnished 1 BHK commands a meaningful premium and lets faster, and the fit-out cost is recovered within two years.

Keep the tax concession. Staying under ₹45 lakh saves about ₹2.6 lakh in charges, which on a ₹44 lakh purchase is close to a year and a half of rent. That alone moves your yield materially.

The fourth thing is outside your control and worth watching: whether the later phases of this project are released quickly or slowly. A developer completing all ten towers within two years floods the local rental market; one releasing them over six years does not. Ask for the phasing plan, and factor the answer into when you expect rents to firm up.

Our honest read

As an income asset at this budget, a new 1 BHK on the airport corridor is one of the more sensible things available. The entry price is reachable, the tax treatment is favourable, the tenant demand is real, and the rent needed for a respectable yield is an ordinary number rather than an optimistic one.

As a capital growth play it is weaker. High density, a large supply of identical units and an outer location all point to slower appreciation than a larger home in a lower-density project closer in.

So buy it for the rent and treat any appreciation as a bonus — and before you commit, get the registration number verified and the price in writing. Everything above rests on reported figures, and a yield calculated from a price nobody has confirmed is arithmetic rather than analysis.

Official figures from Kalyani Developers’ own project page, read 3 October 2026. Items marked reported come from secondary sources and could not be confirmed with the builder. Statutory rates verified 3 October 2026. Nothing here is an offer or a contract — verify any registration number on the Karnataka RERA portal.