2 BHK vs 3 BHK: Which Unit Gives Better Rental Yield

Published On: 5 September 2026

A 2 BHK usually earns a higher rental yield than a 3 BHK. The 3 BHK collects more rent every month, but it costs far more to buy. At in Devanahalli, a 2 BHK works out to roughly 2.4% yield. A 3 BHK sits closer to 2.08%, going by current price and rent levels in the belt.

Ask ten investors which unit performs better and most will point to the 3 BHK. The rent cheque is bigger, so it feels like the smarter buy. Run the actual math and the picture changes. Yield is not about how much rent you collect. It is about how much of your investment that rent covers each year.

Rental Yield, Explained Without the Jargon

Divide your annual rent by what you paid for the flat. Multiply that by 100.

Rental Yield = (Annual Rent ÷ Property Price) × 100

Take a flat priced at ₹1 crore, renting for ₹25,000 a month. That is ₹3 lakhs a year, or a 3% yield. Push the price to ₹1.5 crore for the same rent and the yield falls to 2%. Price does the heavy lifting here, not rent. A costlier flat can rent for more and still return less. That is exactly what plays out between a 2 BHK and a 3 BHK.

The Numbers at Prestige KIADB

Devanahalli's rental base leans on aerospace staff and factory employees. People working in the upcoming business parks add to that pool. This demand shapes what both configurations can fetch.

A 2 BHK here starts around ₹1.1 crore. Rents in the belt currently sit between ₹18,000 and ₹26,000 a month.

Monthly Rent	Annual Rent	Yield on ₹1.1 Cr
₹18,000	₹2.16 lakhs	1.96%
₹22,000	₹2.64 lakhs	2.40%
₹26,000	₹3.12 lakhs	2.84%

A 3 BHK starts around ₹1.9 crore, nearly 73% more expensive. Rents run higher too, from ₹28,000 to ₹38,000.

Monthly Rent	Annual Rent	Yield on ₹1.9 Cr
₹28,000	₹3.36 lakhs	1.77%
₹33,000	₹3.96 lakhs	2.08%
₹38,000	₹4.56 lakhs	2.40%

Look at the midpoints. The 2 BHK sits near 2.4%. The 3 BHK sits near 2.08%. A 0.3 percentage point gap sounds small. Apply it to a crore-plus investment held for years, and it adds up.

Why the Smaller Unit Wins on Paper

The 3 BHK earns nearly ₹1.3 lakhs more in rent every year, comparing the two midpoint figures. That sounds like a win for the bigger unit, and in pure rupee terms, it is. But the 3 BHK also costs 73% more to buy. Its rent did not rise anywhere close to that rate, so the return per rupee drops.

This is the part investors miss when they shop by monthly rent alone. A 2 BHK also rents out faster in most cases. Young professionals and dual income couples make up a bigger tenant share. Families hunting for a third bedroom are fewer. Fewer vacant months adds to the yield advantage, beyond what the tables above show.

None of this makes the 3 BHK a poor choice. Families who need the extra room will pay for it. That rent tends to stay firm, since their options stay limited. If monthly cash flow matters more to you than percentage return, the 3 BHK still has a case.

So Which One Should You Book?

If rental yield is the number you are chasing, the 2 BHK at Prestige KIADB makes more sense. The entry price is lower. Hiring across the KIADB Aerospace Park should also help. Add the project's own business park, and tenant turnaround should stay quick once towers are ready.

Go with the 3 BHK if you are buying for a longer horizon. It also fits if you plan to move in eventually, or want family tenants who stay put for years.

One caveat worth repeating. Possession at Prestige KIADB is set for December 2031. Every number above reflects what similar homes in Devanahalli rent for today. It is not what this specific project will command years from now. Treat it as a working benchmark, not a guarantee.