Gross rental yield is a useful starting point, not a complete investment decision. A ₹50 lakh property earning ₹20,000 per month produces 4.8% gross yield before vacancy, maintenance and taxes.
The basic formula
Annual rent divided by total property cost, multiplied by 100, gives gross rental yield. Include acquisition and setup costs when comparing investments.
Vacancy changes the answer
If a home is vacant for two months, annual rent falls from ₹2.40 lakh to ₹2.00 lakh before other expenses.
Yield versus appreciation
A low-yield property may still attract a buyer expecting long-term appreciation, while a higher-yield property may require more management.
What to remember
- Use realistic occupied months.
- Include repair and transaction costs.
- Never use yield as the only investment test.
Good real-estate decisions begin with clear information, local context and documents that can be verified.
Demo editorial content: replace the examples, figures and observations with reviewed SANKUPRA reporting before public promotion.
