No price levels, appreciation percentages, rental yields or transaction data appear anywhere in this article. This site publishes only figures traceable to the developer's published project information or a public record, and it holds no market data for this question. An estimate presented as a finding would be worse than no figure at all.
What follows is the method: how the number is built, where to obtain the inputs, and what to check. For current prices on a specific project, ask the project team. For market data, use a source that actually holds it.
The two formulas
Gross yield = (monthly rent × 12) ÷ total purchase cost × 100
Net yield = (annual rent − annual costs − vacancy − tax) ÷ total purchase cost × 100
Both are simple. The difficulty is entirely in getting honest inputs, and most quoted yields fail on two of them: they use the base price rather than total cost, and they assume the flat is never empty.
Getting the denominator right
The denominator is everything you spent to own a lettable property, not the headline price. That means:
- Base price
- Floor rise, preferred location charge and parking
- GST, where applicable
- Stamp duty and registration
- Legal fees and brokerage
- Clubhouse, corpus and deposits
- Interiors, without which many flats do not let at the rate assumed
The full list of what sits outside the quoted price is the same list. Using the base price alone shrinks the denominator and inflates the yield, which is precisely why quoted yields use it.
The nine costs between gross and net
| Cost | Frequency | Note |
|---|---|---|
| Maintenance charge | Monthly | Payable whether or not the flat is let. How it is set |
| Property tax | Annual | Rises with area and value |
| Insurance | Annual | Structure and contents |
| Repairs and replacement | Irregular | Appliances, paint, fittings between tenants |
| Letting fee or brokerage | Per tenancy | Recurs with every tenant change |
| Vacancy | Between tenancies | The largest variable, see below |
| Tax on rental income | Annual | Taxable, with deductions available |
| Management, if used | Monthly | Relevant if you do not manage it yourself |
| Loan interest | Monthly | Affects cash flow; treatment in yield depends on your method |
Vacancy is the biggest variable
A yield computed on twelve months of rent assumes the flat is never empty, never between tenants and never being repainted. Two empty months removes roughly a sixth of the year's income, while maintenance, property tax and loan interest run on regardless.
What reduces vacancy is the same thing that makes a flat easy to sell: a large pool of people who want it. The factors behind that apply equally to letting. Specifically, for a let property:
- Proximity to employment drives tenant demand directly.
- A mainstream configuration finds tenants faster than an unusual one.
- Condition and interiors determine both the rate and the time to let.
- How many comparable units in the same project are also available, which is a supply question within your own building.
Where to get real rent figures
- Listing portals, for asking rents. Treat these as the top of the range.
- Local letting agents, who see what is actually agreed rather than what is asked.
- Residents in the project or a comparable one, who will tell you what units there let for and how long they sat empty.
- The association, which often knows how many units in the building are let.
Ask specifically about time to let, not just rate. A high rate achieved after four empty months is a worse outcome than a lower rate let immediately.
Want the details to run your own numbers?
Configuration sizes, the current price sheet, the charges outside the base price and the estimated maintenance rate all come from the project team.
A worked template
Fill in your own figures. Every input is obtainable; none is supplied here.
| Line | Where the figure comes from | Your number |
|---|---|---|
| A. Total purchase cost | Your own cost sheet, all lines | ____ |
| B. Achievable monthly rent | Local agents and residents, not portals alone | ____ |
| C. Gross annual rent (B × 12) | Arithmetic | ____ |
| D. Assumed vacancy, in months | Ask how long units take to let | ____ |
| E. Annual maintenance | Rate per sq ft × area × 12 | ____ |
| F. Property tax, insurance, repairs | Association and your own estimate | ____ |
| G. Letting fee, annualised | Agent, divided over expected tenancy length | ____ |
| H. Tax on rental income | Your chartered accountant | ____ |
| Net yield | (C − vacancy − E − F − G − H) ÷ A × 100 | ____ |
Run it twice: once on your expected case and once assuming three months vacant and a repaint. The second number is the one to make decisions on.
What to ask
- What do comparable units in this project or a similar one actually let for?
- How long do they typically take to let?
- How many units in this project are currently available to rent?
- What is the maintenance rate per square foot per month?
- Does the association place any restriction on letting?
- What will my total purchase cost be, all lines included?
Question five catches people. Some associations restrict short term letting or require registration of tenants, which affects both the rate and the pool.
This explains how a calculation works and where its inputs come from. It is not financial or investment advice, it does not account for your circumstances, and property returns are not guaranteed. Take advice from your own financial adviser and chartered accountant.
How do you calculate rental yield?
Gross rental yield is the annual rent divided by the total purchase cost, expressed as a percentage. Net rental yield subtracts the costs of owning and letting the property, including maintenance, property tax, insurance, repairs, letting fees, periods of vacancy and tax on the rental income, before performing the same division.
What is the difference between gross and net rental yield?
Gross ignores every cost of ownership and letting; net accounts for them. Gross is the figure usually quoted because it is larger. Net is the figure that corresponds to money actually reaching you, and the difference between the two is substantial on most properties.
Should I use the purchase price or total cost to calculate yield?
Total cost. The money you committed includes stamp duty, registration, GST where applicable, brokerage, legal fees and interiors, and all of it had to be spent to produce the rental income. Using only the base price flatters the yield by shrinking the denominator.
How much does vacancy affect rental yield?
Considerably, and it is usually the largest single variable. Two months empty in a year removes roughly a sixth of the gross income, while maintenance, property tax and loan interest continue throughout. Assume some vacancy in any realistic calculation rather than modelling full occupancy.
Where can I find actual rent levels for an area?
Listing portals show asking rents, local letting agents see what is actually agreed, and residents in a project can tell you what units there let for. Treat asking rents as the top of the range. We publish no rent figures ourselves, as we hold no rental market data.
Is rental income taxable in India?
Yes. Income from house property is taxable, with deductions available including a standard deduction and interest on a housing loan, subject to the applicable limits. The treatment depends on your circumstances and on whether the property is self occupied or let out. Confirm the position with your chartered accountant.