What is a good rental yield in India?

In India, residential properties typically offer a gross rental yield of 2% to 3.5%. Commercial properties offer significantly higher yields, often ranging from 6% to 9%. A 'good' yield depends on the city and location, but a net yield above 3% for residential is considered strong.

How do you calculate gross vs net rental yield?

Gross Rental Yield = (Annual Rent / Property Value) × 100. Net Rental Yield = ((Annual Rent - Annual Expenses) / Property Value) × 100. Expenses include property tax, society maintenance, repairs, and insurance.

Rental Yield Calculator

Calculate the profitability of your real estate investment

Property Value (₹)₹50,00,000

Expected Monthly Rent (₹)₹25,000

Annual Expenses (Maintenance, Tax, Insurance) (₹)₹20,000

Gross Rental Yield

6.00%

Before expenses

Net Rental Yield

5.60%

After annual expenses

Yield Analysis

A net rental yield of 2-3% is standard for residential properties in major Indian cities. Commercial properties often yield 6-9%. If your net yield is below 2%, you might be overpaying for the property or undercharging rent relative to its value.

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