Rental Yield in Mumbai (2026)
Average gross and estimated net rental yields for property investors in Mumbai, India. Updated April 2026.
Estimated Yield by Property Type
Gross yield calculated from average annual rent ÷ estimated purchase price. Net yield deducts estimated 15–20% for expenses.
| Unit Type | Avg Monthly Rent | Annual Rent | Est. Gross Yield | Est. Net Yield |
|---|---|---|---|---|
| 1 BHK | INR 32,000 | INR 384,000 | 3.6% | 3.0% |
| 2 BHK | INR 52,000 | INR 624,000 | 2.8% | 2.3% |
| 3 BHK | INR 95,000 | INR 1,140,000 | 2.5% | 2.1% |
| 4 BHK | INR 180,000 | INR 2,160,000 | 2.2% | 1.8% |
| Bungalow/Duplex | INR 400,000 | INR 4,800,000 | 1.8% | 1.5% |
Gross yield estimates use average market purchase prices. Net yield deducts approx. 18% for maintenance, management, and vacancy. Actual returns vary.
Yield by Neighbourhood
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Open Yield Calculator →Mumbai Investment Market Overview
Mumbai is India's most expensive and active rental market. The city's chronic housing shortage, corporate sector, and entertainment industry drive strong demand. Bandra, Worli, and Lower Parel are prime areas with South Mumbai being the traditional premium zone.
Investor Insights
- Security deposits in Mumbai can be 2–6 months rent — significantly higher than other cities.
- Leave & Licence (L&L) agreement is the standard rental contract in Maharashtra.
- Maharashtra Rent Control Act applies to older properties — newer buildings are decontrolled.
- BKC (Bandra Kurla Complex) is driving premium office and residential demand.
- Property yields in Mumbai are among the lowest in India — appreciation is the primary return.
Compare Yields in Nearby Cities
Mumbai Investment Facts
Renttaag automatically calculates yield for each property as rent and expenses are recorded. Free for up to 3 properties.
Start Free →Rental Yield FAQs — Mumbai
What is a good rental yield in Mumbai?
The average gross yield in Mumbai is 2.8%. A yield above this is considered good. Smaller units (studios, 1BR) typically yield more than larger apartments because purchase prices don't scale proportionally with rent.
What is the difference between gross and net yield?
Gross yield = (annual rent ÷ property price) × 100. It ignores costs. Net yield deducts operating expenses — maintenance, management fees, insurance, and vacancy periods — typically 15–20% of gross rent. In Mumbai, the estimated net yield averages ~2.3%.
Which property type gives the best yield in Mumbai?
Studios and 1-bedroom apartments typically offer the highest gross yields in Mumbai because entry prices are lower relative to rental income. Studios average around 3.6% gross yield, while 3+ bedroom units may yield 2.2% or less.