Before buying an investment property in India, you MUST calculate the rental yield. Many people buy properties assuming 5–6% yield but actually earn 2–3% after accounting for all costs.
What Is Rental Yield?
Gross Rental Yield = (Annual Rent / Property Price) × 100
Net Rental Yield accounts for: maintenance, property tax, vacancy periods, and management fees.
Typical Rental Yields Across Indian Cities (2026)
| City | Gross Yield | Net Yield |
|---|---|---|
| Mumbai | 2–3% | 1.5–2% |
| Delhi NCR | 2.5–3.5% | 2–2.8% |
| Bangalore | 3–4% | 2.5–3.2% |
| Pune | 3.5–4.5% | 3–3.8% |
| Hyderabad | 3–4.5% | 2.5–3.5% |
| Chennai | 3–4% | 2.5–3% |
| Tier-2 Cities | 4–6% | 3–5% |
Real Example: ₹80 Lakh Flat in Pune
| Item | Amount |
|---|---|
| Purchase Price | ₹80,00,000 |
| Monthly Rent | ₹22,000 |
| Annual Gross Income | ₹2,64,000 |
| Gross Yield | 3.3% |
| Maintenance (annual) | ₹36,000 |
| Property Tax | ₹12,000 |
| Vacancy (1 month) | ₹22,000 |
| Net Annual Income | ₹1,94,000 |
| Net Yield | 2.4% |
Compare: Fixed Deposits offer 7.5% with zero hassle. Is this property worth it?
When Real Estate Beats FD
The key is capital appreciation. If the property appreciates 8% annually:
- Total return = 2.4% (yield) + 8% (appreciation) = 10.4%
- This beats most debt instruments
Free Rental Yield Calculator
👉 Rental Yield Calculator India
Calculate gross yield, net yield, monthly cash flow, and compare vs FD returns — all in one tool.
Originally published at GlobalInfoWiki
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