Last updated: 24 October 2026
Rental yield is the annual rent as a percentage of what the property cost you. To use it, put your own numbers into the formula, using current rents for the exact building and your true total cost. Market-wide yield figures change and hide large differences between buildings.
The formula
Gross yield = annual rent divided by total purchase cost, times 100. Net yield uses rent after costs. Total cost should include the price, stamp duty and registration, interiors and any brokerage.
A worked example (illustration only, not a market figure)
Suppose a flat costs ₹1 crore in total and rents for ₹30,000 a month. Annual rent is ₹3.6 lakh, so the gross yield is 3.6%. If maintenance, repairs, property tax and a month of vacancy come to ₹40,000 a year, net rent is ₹3.2 lakh and the net yield is 3.2%. These numbers are made up to show the method. Use your own.
Costs that reduce your yield
- Vacancy between tenants.
- Maintenance charges you pay when the flat is empty, or that the tenant does not cover.
- Repairs and repainting between tenants.
- Property tax and income tax on rent.
- Loan interest, if you borrowed, which affects your return on your own money, not the yield.
- Brokerage on each new tenant.
What affects rent near HITEC City
Rent depends on the building, size, condition, furnishing and how close it is to offices, schools and the metro. Employers in the corridor bring tenants who relocate for work, but rents vary widely between buildings, so use listings for the exact project.
Long-term lease or corporate rental
- Long-term lease (for example 11 months): steady income and little management.
- Furnished or corporate lease: can bring higher rent but needs more management, furniture cost and turnover. Compare the extra rent against these costs.
If you are an NRI
- Verify the RERA registration and the seller’s title through an independent lawyer.
- Use a power of attorney with care and take legal advice.
- Rent received is taxable, and repatriation of funds follows RBI rules, so check current guidance.
- A property manager can handle tenants and maintenance. Compare fees.
How to check current rents
- Search at least five current listings in the same building or a neighbouring one.
- Ask the building’s residents’ association or other owners about recent rents.
- Ask local brokers for recent actual lets, not asking rents.
- Update your numbers before you buy.
Related Reading
- Flats in Kondapur: What to Know Before You Buy
- 2 BHK vs 3 BHK vs 4 BHK Near HITEC City
- Top IT Companies in HITEC City
- Kondapur connectivity guide
- HITEC City (Hi-Tech City), Hyderabad
Ready to start your search? Read the Telangana property registration process and how to verify RERA approval, then view Auro Realty’s residential projects.
Frequently Asked Questions
What is rental yield?
Annual rent as a percentage of the property’s total cost.
How do I calculate rental yield?
Divide annual rent by total cost and multiply by 100. For net yield, subtract running costs and vacancy from the rent first.
What is the difference between gross and net yield?
Gross yield ignores costs. Net yield deducts maintenance, repairs, taxes and vacancy.
How do I find the current rental yield in a building?
Compare current rents for similar flats in the building with the price you would pay, using the steps above.
Is a long-term lease or a corporate lease better?
Long-term leases are steadier. Corporate or furnished leases can bring more rent but need more management and cost.
Is it safe for an NRI to buy and rent out a flat in Hyderabad?
Many NRIs do, with care. Verify RERA and title, take legal advice on powers of attorney, and check tax and repatriation rules.
