Full explanation
Gross rental yield = Annual rental income / Property value × 100. Net yield = (Annual rent - Expenses) / Property value × 100, where expenses include property tax, maintenance, vacancy, repairs, and management fees. Indian real estate typically yields 2–4% gross — well below FD rates (7%) and significantly below equity (12–14%). The case for property is capital appreciation. If a property appreciates 6–7% annually plus 3% rent yield = ~10% total return, comparable to debt funds but not equity. Primary residence is not an investment — it's a housing cost.