India's residential property yields are low to moderate

November 21, 2022

Last Updated: Oct. 13, 2022
MUMBAI - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Andheri to Dahisar
Studio $64,338 $158 2.95%
1-Bedroom $111,680 $303 3.26%
2-Bedroom $206,366 $546 3.17%
3-Bedroom $339,896 $850 3.00%
4+Bedroom $631,236 $1,821 3.46%
Thane
Studio $33,868 $176 3.65%
1-Bedroom $72,835 $176 2.90%
2-Bedroom $139,600 $310 2.66%
3-Bedroom $236,714 $486 2.46%
4+Bedroom $546,262 $910 2.00%
Navi Mumbai
Studio $32,776 $103 3.77%
1-Bedroom $58,134 $182 3.76%
2-Bedroom $115,322 $322 3.35%
3-Bedroom $212,435 $510 2.88%
4+Bedroom $364,175 $789 2.60%
Central Mumbai
Studio $67,979 $182 3.21%
1-Bedroom $112,894 $328 3.49%
2-Bedroom $200,296 $571 3.42%
3-Bedroom $333,827 $917 3.30%
4+Bedroom $656,122 $2,549 4.66%
Mumbai Harbour
Studio $35,204 $85 2.90%
1-Bedroom $126,247 $388 3.69%
2-Bedroom $231,858 $631 3.27%
3-Bedroom $394,523 $947 2.88%
4+Bedroom $746,588 $1,517 2.44%
South Mumbai
Studio $103,183 $303 3.52%
1-Bedroom $182,087 $437 2.88%
2-Bedroom $449,149 $1,080 2.89%
3-Bedroom $789,045 $2,064 3.14%
4+Bedroom $1,365,656 $4,552 4.00%
Mumbai avg. Rental Yields 3.19%
DELHI - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Delhi South
Studio $16,996 $146 10.31%
1-Bedroom $20,826 $146 8.41%
2-Bedroom $48,560 $255 6.30%
3-Bedroom $133,565 $546 4.91%
4+Bedroom $849,977 $1,639 2.31%
West Delhi
Studio $19,428 $129 7.97%
1-Bedroom $20,642 $134 7.79%
2-Bedroom $32,785 $243 8.89%
3-Bedroom $54,641 $328 7.20%
4+Bedroom $97,140 $1,032 12.75%
North Delhi
Studio $36,428 $121 3.99%
1-Bedroom $23,145 $146 7.57%
2-Bedroom $37,555 $219 7.00%
3-Bedroom $70,427 $328 7.85%
Delhi Central
Studio $26,652 $188 8.46%
1-Bedroom $26,652 $188 8.46%
2-Bedroom $93,888 $267 3.41%
3-Bedroom $302,865 $546 2.16%
4+Bedroom $1,150,887 $1,008 1.05%
Delhi East
1-Bedroom $55,248 $152 3.30%
2-Bedroom $103,211 $243 2.83%
3-Bedroom $176,067 $340 2.32%
4+Bedroom $403,132 $516 1.54%
Delhi avg. Rental Yields 5.95%
KOLKATA - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Kolkata South
Studio $12,079 $73 7.25%
1-Bedroom $19,423 $97 5.99%
2-Bedroom $44,468 $182 4.91%
3-Bedroom $82,599 $328 4.77%
4+Bedroom $332,631 $1,214 4.48%
Kolkata East
Studio $25,494 $73 3.44%
1-Bedroom $26,101 $97 4.46%
2-Bedroom $58,271 $219 4.51%
3-Bedroom $90,442 $328 4.35%
4+Bedroom $218,517 $668 3.67%
Kolkata North
Studio $15,782 $61 4.64%
1-Bedroom $20,990 $85 4.86%
2-Bedroom $40,061 $134 4.01%
3-Bedroom $69,513 $206 3.56%
4+Bedroom $173,600 $461 3.19%
Kolkata West
1-Bedroom $18,100 $97 6.43%
2-Bedroom $29,111 $118 4.86%
3-Bedroom $48,559 $243 6.01%
Kolkata Central
1-Bedroom $20,195 $85 5.05%
2-Bedroom $37,670 $304 9.68%
3-Bedroom $71,273 $449 7.56%
4+Bedroom $274,360 $607 2.65%
Kolkata avg. Rental Yields 5.01%
PUNE - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Kharadi
Studio $34,599 $97 3.36%
1-Bedroom $60,396 $182 3.62%
2-Bedroom $93,938 $364 4.65%
3-Bedroom $128,075 $546 5.12%
4+Bedroom $337,487 $910 3.24%
Hadapsur
Studio $43,703 $188 5.16%
1-Bedroom $42,489 $182 5.14%
2-Bedroom $95,565 $304 3.82%
3-Bedroom $145,678 $425 3.50%
4+Bedroom $364,195 $643 2.12%
Hinjewadi
1-Bedroom $47,673 $195 4.91%
2-Bedroom $75,376 $243 3.87%
3-Bedroom $111,686 $340 3.65%
4+Bedroom $204,556 $546 3.20%
Ravet
1-Bedroom $43,703 $134 3.68%
2-Bedroom $64,341 $194 3.62%
3-Bedroom $89,968 $243 3.24%
Baner
1-Bedroom $54,065 $219 4.86%
2-Bedroom $103,189 $300 3.49%
3-Bedroom $169,958 $486 3.43%
4+Bedroom $321,705 $1,609 6.00%
Wagholi
1-Bedroom $37,633 $109 3.48%
2-Bedroom $54,629 $170 3.73%
3-Bedroom $92,263 $267 3.47%
4+Bedroom $155,390 $352 2.72%
Undri
1-Bedroom $36,723 $109 3.56%
2-Bedroom $60,699 $182 3.60%
3-Bedroom $100,676 $340 4.05%
4+Bedroom $261,006 $510 2.34%
Pune avg. Rental Yields 3.81%
BANGALORE - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Bangalore North
Studio $36,419 $134 4.42%
1-Bedroom $54,629 $182 4.00%
2-Bedroom $83,765 $291 4.17%
3-Bedroom $151,748 $486 3.84%
4+Bedroom $424,894 $1,457 4.11%
Bangalore East
Studio $39,831 $134 4.04%
1-Bedroom $53,974 $182 4.05%
2-Bedroom $80,123 $316 4.73%
3-Bedroom $117,453 $583 5.96%
4+Bedroom $254,936 $971 4.57%
Bangalore South
Studio $33,992 $109 3.85%
1-Bedroom $43,703 $147 4.04%
2-Bedroom $68,104 $291 5.13%
3-Bedroom $120,178 $486 4.85%
4+Bedroom $449,174 $941 2.51%
Bangalore West
Studio $54,629 $155 3.40%
1-Bedroom $56,450 $134 2.85%
2-Bedroom $94,691 $270 3.42%
3-Bedroom $206,377 $425 2.47%
4+Bedroom $437,034 $1,942 5.33%
Bangalore Central
1-Bedroom $26,683 $182 8.18%
2-Bedroom $90,709 $388 5.13%
3-Bedroom $291,356 $832 3.43%
4+Bedroom $643,411 $2,428 4.53%
Bangalore avg. Rental Yields 4.29%
HYDERABAD - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Kondapur
Studio $38,847 $121 3.74%
1-Bedroom $38,847 $146 4.51%
2-Bedroom $96,026 $243 3.04%
3-Bedroom $157,818 $340 2.59%
4+Bedroom $345,985 $546 1.89%
Kukatpally
1-Bedroom $31,564 $115 4.37%
2-Bedroom $87,406 $255 3.50%
3-Bedroom $131,110 $516 4.72%
4+Bedroom $175,421 $850 5.81%
Gachibowli
1-Bedroom $35,254 $146 4.97%
2-Bedroom $85,586 $291 4.08%
3-Bedroom $151,748 $546 4.32%
4+Bedroom $494,091 $910 2.21%
Miyapur
2-Bedroom $69,925 $170 2.92%
3-Bedroom $108,791 $291 3.21%
Bachupally
2-Bedroom $72,463 $219 3.63%
3-Bedroom $103,189 $182 2.12%
Tellapur
3-Bedroom $121,398 $1,093 6.60%
4+Bedroom $475,881 $668 1.68%
Hyderabad avg. Rental Yields 3.68%
CHENNAI - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Chennai (all locations)
Studio $21,852 $106 5.82%
1-Bedroom $36,298 $158 5.22%
2-Bedroom $66,769 $225 4.04%
3-Bedroom $112,494 $461 4.92%
4+Bedroom $303,496 $1,093 4.32%
Chennai avg. Rental Yields 4.87%
AHMEDABAD - Apartments COST ($) YIELD (p.a.)
TO BUY MONTHLY RENT
Ahmedabad (all locations)
Studio $16,996 $97 6.85%
1-Bedroom $30,350 $140 5.54%
2-Bedroom $54,629 $206 4.53%
3-Bedroom $97,119 $304 3.76%
4+Bedroom $285,286 $728 3.06%
Ahmedabad avg. Rental Yields 4.75%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

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Mumbai has low rental yields, with property investors earning between 2.00% to 4.00% gross. Apartments remain expensive compared to rent prices. Mumbai is the world´s 13th most expensive city for the property buyer. It is unlikely that after costs and depreciation a property buyer will make any return on his property.

In New Delhi, prices are of course much lower, despite the continuous price rises in that city. Gross rental yields in Delhi are moderate from 1.05% to 12.75% gross with an average of 5.95%.

In Bangalore, rental yields are low to moderate, ranging from 2.47% to 8.18%. Again, this is a long way below the nice yields of 7.16% to 9.92% which could be obtained way back in the year 2007.

In Pune, rental yields are lower than in New Delhi, ranging from 2.12% to 6.00%.

Conclusion: Indian gross rental yields are very low. This suggests that Indian residential property is somewhat overvalued. While low rental yields do not always indicate over-valuation, especially in periods when interest rates are low, they are only justified if rapid economic growth is expected, and also, if there are sufficient restrictions on new buildings to prevent the market from being flooded with new properties as prices rise. The buyer must ask himself whether these two conditions are met in India.

Round trip transaction costs are moderate to high in India. See our Property transaction costs analysis for India and Property transaction costs in India, compared to the rest of Asia