Rental yields in Pune and Chennai: how to calculate yours
Gross yield is the easy number. Net yield after costs is the one that matters.
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Gross rental yield divides annual rent by purchase price. Net yield subtracts maintenance, property tax, vacancy and repairs.
Residential yields in Indian metros are typically modest compared with commercial property, with capital appreciation making up much of the return.
Compare yield with the interest rate on your loan to see whether the property pays for itself.
What this means for you
Run your own numbers: annual rent minus yearly costs, divided by total cost of purchase including stamp duty and registration.
Sources
- RBI housing price dataother
- Tamil Nadu RERAother
