Rental Yield Calculator UAE — 2025

Indian residential property yields are generally low: 2–3.5% gross in major cities. Tier 2 cities (Jaipur, Indore, Coimbatore) sometimes offer 4–5%. Commercial property (shops, offices) typically yields 5–9%. Compared to FD rates of 7–7.5%, residential rental yields in India are poor as pure income investments.

Gross yield: (Annual rent / Property value) × 100. Net yield: (Annual rent - All expenses) / Property value × 100. Expenses include: property tax (0.1–0.5% of property value), maintenance (0.5–1%), vacancy loss (typically 5–10% of annual rent), broker fees, insurance.

Capitalisation rate (cap rate) is the net operating income divided by property value — essentially the same as net rental yield. Used more in commercial real estate. A cap rate of 7% means the property generates 7% of its value in net income annually. Higher cap rate = better income return (or higher risk).

Yes. Rental income is taxed as "Income from House Property." Standard deduction of 30% of Net Annual Value (rent - property tax) is allowed. Home loan interest is deductible up to ₹2 lakh for self-occupied; unlimited for let-out property (loss can be carried forward 8 years).

For most investors, the answer is no — unless the rental yield exceeds your loan rate and you have strong capital appreciation expectations. Equity mutual funds offer 10–12% with far better liquidity. Real estate makes more sense as a primary residence than as a rental investment in most Indian markets.