Hello. I came across your question regarding what is a good percentage rental yield and can tell you that a rental yield of 6 to 8 percent is considered good in India. Let me tell you more about this.
What is a Good Rental Return Percentage in India?
Let me start with the rental yield of residential properties in India. I will share the data city-wise.
Delhi NCR: The gross rental yield in Delhi is decent with an average of 6.24 percent throughout the city. When you compare to others, Delhi has the best rental yield in India.
Bangalore: When you talk about this city, the rental yield is low to average with a rental yield ranging from 2.39 percent to 7.15 percent.
Mumbai: The yield here is pretty low with an average ranging from 2.19 to 5.73 percent gross. The cost of flats here is quite high in comparison to the rental prices and that is why Mumbai is amongst the most expensive cities in the world.
What is a Good Rental Yield Percentage for Commercial Properties in India?
As I said above, the range for commercial properties is 6 to 8%. Here, I have shared the average rental yield in three of the top cities in India.
City |
Rental Yield |
Delhi NCR |
8 percent |
Bengaluru |
7.75 percent |
Mumbai |
7.75 percent |
This is all from my side regarding what percentage is a good rental yield. I hope this helps.
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what is a good rental yield?
Rental yield is a measure of the return on investment generated by a property through rental income.
It is expressed as a percentage of the property's market value. It is calculated by dividing the annual rental income by the property's market value and multiplying by 100.
A good rental yield is subjective and depends on various factors. It includes individual investment goals, risk tolerance, and prevailing market conditions.
Properties in prime locations or areas with high demand for rentals may command higher rental yields. The type of property (residential, commercial, etc.) and its condition can influence rental yields.
Economic factors, demand-supply dynamics, and overall market conditions play a significant role in determining rental yields.
A good rental yield is subjective and depends on various factors. It includes individual investment goals, risk tolerance, and prevailing market conditions.
Investors often aim for a balance between rental yield and potential for property appreciation. Some prioritize rental income, while others focus more on the potential for capital gains.
Here, what is a good rental yield is explained.
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Authors Of The Question
What is a Good Rental Yield?
Manu Aggrawal
231 Views
2 Answers
11 months
2024-01-02T16:22:57+00:00 2024-07-02T09:01:30+00:00Comment
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