🇮🇳 South Asia 2.8% avg yield

Rental Yield in Mumbai (2026)

Average gross and estimated net rental yields for property investors in Mumbai, India. Updated April 2026.

Avg. Gross Yield
2.8%
per year

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

Bandra West
Premium West
2.3%
1BR avg: INR 80,000/mo
Demand: Very High
Worli
Sea View
2.3%
1BR avg: INR 95,000/mo
Demand: High
Lower Parel
Corporate Hub
2.3%
1BR avg: INR 70,000/mo
Demand: High
Andheri West
Mid-premium
3.3%
1BR avg: INR 42,000/mo
Demand: High
Malad
Mid-market
3.3%
1BR avg: INR 28,000/mo
Demand: Medium
Navi Mumbai
Affordable
3.3%
1BR avg: INR 18,000/mo
Demand: High
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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.

Mumbai Investment Facts

Market 🇮🇳 India
Avg Gross Yield 2.8%
Est. Net Yield ~2.3%
YoY Rent Change +6.8%
1BR Avg Rent INR 52,000/mo
Population 21M
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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.