Rental Yield

Rental yield is calculated as (Annual Rent / Property Value) × 100. Gross yield uses the full rent; net yield deducts expenses like maintenance, property tax, and vacancy. Indian residential properties typically yield 2-4% gross, far lower than commercial (6-9%) or global markets (UK 4-6%, US 6-8%). Cities like Mumbai, Delhi, and Bengaluru average 2-3% net yield, while smaller cities can give 4-5%. Investors often use rental yield to compare property with financial assets like bonds and FDs.