Question 1

What is a good rental yield in India?

Accepted Answer

In India, a gross rental yield of 3-5% is considered average. Yields above 5% are good, while premium properties in metro cities often yield only 2-3%. Commercial properties typically offer higher yields of 6-8%.

Question 2

What is the difference between gross and net rental yield?

Accepted Answer

Gross rental yield is calculated as (Annual Rent / Property Value) x 100, without deducting expenses. Net rental yield subtracts maintenance, property tax, insurance, and vacancy costs from annual rent before dividing by property value.

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