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RealCostIQ

City benchmark ยท July 2026 ยท free calculator

Rental Yield in Hyderabad

Hyderabad gross rental yield

3.0โ€“3.5%

Premium/luxury segment ยท luxury avg 2.6โ€“4% ยท source: Sobha

Premium/luxury segment gross yields (Sobha, 2026). Mid-market and tier-2 property can yield differently; other published series using asking prices report higher citywide figures.

Comparable to Bengaluru on premium yield, with substantial IT-corridor rental demand. Enter your own property below to get its gross and net yield.

Educational calculators โ€” always consult a licensed professional before making financial decisions.

Current market value or what you'd pay.

โ‚น
โ‚น10Kโ‚น50Cr

Gross rent you collect each month.

โ‚น
โ‚น1โ‚น50L

For net yield. Estimate as a % of rent, or enter your own total.

Typical range 20โ€“25% for long-term rentals.

%
0%80%

Tax + insurance + maintenance + management + repairs. Exclude mortgage.

โ‚น
โ‚น0โ‚น5Cr

Net Rental Yield

2.9%

Gross yield 3.8% ยท โ‚น3,00,000 rent/yr

Gross yield3.8%
Net yield2.9%
Annual rentโ‚น3,00,000
Annual costsโˆ’โ‚น66,000
Net monthly incomeโ‚น19,500
Below the healthy band. A net yield under 3.5% is common in pricey markets; the case usually rests on appreciation.
0%Healthy: 3.5โ€“6%9%+

โ–  Net yield ย  โ–  Gross yield โ€” versus the IN healthy band.

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A full PDF breakdown of these numbers โ€” yours to keep or hand to a contractor.

Yield excludes mortgage payments and income tax. Net yield uses your cost estimate โ€” refine it for a precise figure. Estimate only; consult a licensed professional.

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What a 3.0โ€“3.5% yield means in practice

At 3.0โ€“3.5% gross, a Hyderabad property will almost certainly run negative cash flow if you finance it. Home-loan rates in India sit comfortably above that yield, so the EMI exceeds the rent from the first month. This is not evidence that you have found a bad flat โ€” it is the structural condition of financed metro rentals across India, and Hyderabad is no exception.

What it does mean is that your return has to come from somewhere other than income: capital appreciation, the principal your tenant quietly pays down each month, and the tax treatment โ€” the flat 30% standard deduction on net annual value under Section 24(a) and home-loan interest under Section 24(b). If you are buying for monthly income, the yield is telling you something important. If you are buying for a 10-year hold, it is telling you much less than you think.

Also remember this is the gross figure. Net yield โ€” after municipal property tax, society and maintenance charges, insurance, and repairs โ€” typically lands 20โ€“35% lower. Use the calculator above with your real costs, then model the full hold including the eventual sale with the rental property calculator.

Hyderabad vs other Indian cities

CityGross yield
Hyderabad (this page)3.0โ€“3.5%
Bengaluru3.0โ€“3.6%
Gurgaon3.0โ€“3.5%
Pune3.0โ€“3.4%
Greater Noida3.0โ€“3.4%
Chennai2.8โ€“3.2%
Mumbai2.0โ€“2.6%

Source: Sobha (2026), premium/luxury segment. Benchmarks are directional, move over time, and vary sharply by micro-market โ€” the spread within a city is often wider than the gap between cities. See the full rental yield by city guide.

Frequently asked questions

What is the rental yield in Hyderabad?+

Hyderabad's premium/luxury-segment gross rental yield runs approximately 3.0โ€“3.5% (Sobha, 2026). Comparable to Bengaluru on premium yield, with substantial IT-corridor rental demand. Note this figure covers the premium segment specifically, not a citywide all-segment average โ€” mid-market and tier-2 property can yield differently, and other published series that use asking prices report higher citywide figures. Gross yield is annual rent divided by property value; your net yield after municipal tax, society charges, insurance and repairs will typically land 20โ€“35% lower.

Is Hyderabad a good city for rental investment?+

It depends on what you want the property to do. At 3.0โ€“3.5% gross, Hyderabad is unlikely to cash-flow positive if you finance it, because home-loan rates sit above that yield โ€” the EMI will exceed the rent. The investment case rests on capital appreciation, tenant-funded loan paydown, and the tax deductions under Sections 24(a) and 24(b). If you need monthly income rather than long-term growth, judge it against that, not against the yield headline.

How does Hyderabad compare to other Indian cities?+

Across India's major metros, premium-segment yields cluster in a fairly narrow band โ€” Sobha reports luxury rentals averaging 2.6โ€“4%, with Bengaluru and Hyderabad at the stronger end (around 3.0โ€“3.6%) and Mumbai at the weakest (2.0โ€“2.6%), where prices are most extreme relative to rents. The comparison table on this page shows every city we have a verified figure for.

Should I use gross or net yield to decide?+

Net yield. Gross yield ignores costs entirely, which is exactly why it appears in advertisements. Net yield subtracts municipal property tax, society and maintenance charges, insurance, and repairs โ€” and usually lands 20โ€“35% below the gross figure. Calculate your own rather than trusting a listing's headline number.