Rental Yield Calculator
Typical NCR gross yields
| Segment | Indicative gross yield | Notes |
|---|---|---|
| Mid-segment apartments, Noida / Greater Noida West | 3.0–4.0% | Deepest tenant pool; strongest yields in NCR residential |
| Premium apartments, Gurgaon (Sohna Road, Dwarka Expressway) | 2.8–3.5% | Corporate tenants; rent tracks office absorption |
| Luxury apartments, Golf Course Road | 2.0–2.8% | Capital values outpace rent; returns are appreciation-led |
| Independent floors, South Delhi | 1.8–2.5% | Land value dominates; low yield by design |
| Serviced / co-living formats | 4.5–6.0% | Higher operating cost and management effort |
Gross yield versus net yield
Gross yield is the headline number every listing quotes: twelve months of rent divided by what you paid. It is useful for comparing localities quickly but flatters reality, because it ignores everything you spend to keep the asset rented. Net yield subtracts the real costs — society maintenance or CAM, property tax, building insurance, periodic repainting and repairs, brokerage on each new tenant, and the months the flat sits empty between tenancies. In practice the gap is 0.5 to 1.2 percentage points, so a headline 3.5% Gurgaon apartment often nets closer to 2.5%. Net yield is the only figure worth comparing against a fixed deposit or a debt fund.
Why NCR yields look low — and why that is not the whole story
Delhi NCR residential yields sit in the 2–4% band, well below Bengaluru or Pune, and far below commercial property. The reason is structural: capital values in Gurgaon's premium corridors have risen faster than rents for a decade, and rent is anchored to salaries while price is anchored to scarcity and speculation. That does not automatically make NCR a bad investment — total return is yield plus appreciation, and the corridors around Dwarka Expressway and Golf Course Extension have delivered double-digit annual capital growth in recent cycles. It does mean you should never underwrite an NCR residential purchase on rent alone: if the location thesis is weak, the yield will not rescue you.
Costs buyers routinely forget
CAM is the biggest silent drag in premium projects. At ₹5 per sq.ft. per month, a 2,000 sq.ft. apartment carries ₹10,000 a month — roughly ₹1.2 lakh a year, or nearly a fifth of a ₹55,000 monthly rent. Add a one-month brokerage each time the tenant changes (NCR tenancies average 22–30 months), a month of vacancy in the transition, ₹15,000–25,000 of annual repairs and a repaint every second tenancy. Also remember that rental income is taxable under Income from House Property: you get a flat 30% standard deduction plus full home-loan interest deduction on a let-out property, though set-off against other income heads is capped at ₹2 lakh a year.
How to use the result
Treat 3% net as a strong outcome for NCR residential and anything under 2% net as a pure appreciation bet that must be justified by location. If you are leveraged, compare net yield to your loan rate: at 8.5% interest against a 2.5% net yield, rent covers under a third of your interest cost, and the investment only works if prices rise. Run the same property through our EMI calculator to see the monthly shortfall you would be funding, and speak to an advisor about the rental demand profile of the specific tower — in NCR, yield varies more between projects in one sector than it does between sectors.
Good to know
Rental Yield Questions, Answered
Residential gross yields in NCR typically run 2–4%. Well-located Gurgaon apartments on Golf Course Road or Dwarka Expressway average around 3–3.5%, while luxury projects often yield less because capital values are high relative to rent. Yields above 4% usually involve commercial or serviced formats.
Gross yield = annual rent ÷ property value. Net yield subtracts your actual holding costs — maintenance/CAM, property tax, insurance and vacancy loss — and is typically 0.5–1 percentage point lower. Net yield is the number to compare against fixed-income alternatives.
Rarely. In NCR, total returns are dominated by capital appreciation; rent is best treated as a holding subsidy. Investors focused on income alone often do better in REITs, while property investors should underwrite location-led price growth first.
Yes, under "Income from House Property". You get a standard 30% deduction on the net annual value plus a deduction for home-loan interest (full interest for let-out property, subject to the ₹2 lakh set-off cap against other heads).
Which projects actually rent well?
We track achieved rents tower by tower across Gurgaon and Noida — ask for the current data on your shortlist.