**How Rental Yield Is Calculated** Rental yield = (Annual rent / Property purchase price) × 100 A ₹80 lakh apartment generating ₹25,000 per month in rent delivers a gross yield of 3.75%. After deducting property tax, maintenance, and vacancy, the net yield is typically 2.8–3.2%. **City-by-City Breakdown** **Chennai (Gross Yield: 2.8–3.9%)** - Sholinganallur: 3.5–3.9% (tech worker demand keeps vacancy low) - Thoraipakkam: 3.2–3.6% - Perumbakkam: 3.4–3.8% (emerging, higher yield on lower price base) - ECR: 2.5–3.0% (lower yield, higher appreciation) **Hyderabad (Gross Yield: 3.0–4.1%)** - Gachibowli: 3.5–4.1% (best yield in premium market) - HITEC City: 3.2–3.8% - Kokapet: 2.8–3.2% (appreciation-first market) - Shamshabad: 3.6–4.0% (airport proximity drives short-term rentals) **Bengaluru (Gross Yield: 2.4–3.5%)** - Whitefield: 3.0–3.5% - Sarjapur Road: 2.8–3.2% - Koramangala: 2.4–2.8% (premium locality, compressed yield) - Hebbal: 3.2–3.6% (near airport, good demand) **Coimbatore (Gross Yield: 3.6–4.4%)** - Saravanampatti: 3.8–4.4% (best in class, IT worker demand) - Peelamedu: 3.6–4.0% - RS Puram: 3.2–3.6% **Key Factors That Affect Your Actual Yield** - **Furnishing level**: Fully furnished apartments command 30–40% more rent but cost ₹8–15 lakh to furnish - **Vacancy rate**: Target markets with <4% annual vacancy; Gachibowli and Sholinganallur meet this standard - **Tenant quality**: IT professionals on 2-year leases with company-backed rental allowances are the most reliable tenants - **Property age**: New properties have fewer maintenance surprises and attract better tenants **The Appreciation vs Yield Trade-off** High-appreciation markets like Kokapet and Koramangala offer lower yields but stronger capital gains. High-yield markets like Saravanampatti offer better income but more modest appreciation. Neither is universally superior — the right choice depends on your financial goals and investment horizon.