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Rental Yield in Pune: How to Calculate It Honestly
Rental yield is the one number that tells you whether a flat pays for itself — and it is the number sales pitches are quietest about. It is simple to calculate, and the answer in Pune is usually lower than people expect. Here is how to work it out for the specific flat you are looking at, rather than taking anyone’s word for it.
The calculation
Gross yield = (monthly rent × 12) ÷ total purchase cost × 100
Two rules make this honest:
- Total purchase cost, not the flat price. Add stamp duty, registration, GST if the building has no occupancy certificate, parking, floor-rise, and what you spend making it liveable. This is routinely 10–15% on top of the quoted price.
- The rent you can actually get — verified against what similar flats in that society are currently let for, not what the sales desk projects.
Worked example, using our own verified rate band
A 700 sq ft carpet 2 BHK in Baner. Our current band is ₹10,800–12,400 per sq ft carpet; take the midpoint, ₹11,600 → roughly ₹81 lakh for the flat, and about ₹89 lakh all-in once you add duty, registration and setup.
Now the part only you can fill in — the rent:
| Monthly rent | Annual | Gross yield on ₹89 lakh | Net, after ~25% costs |
|---|---|---|---|
| ₹20,000 | ₹2.40 L | 2.7% | 2.0% |
| ₹25,000 | ₹3.00 L | 3.4% | 2.5% |
| ₹30,000 | ₹3.60 L | 4.0% | 3.0% |
| ₹35,000 | ₹4.20 L | 4.7% | 3.5% |
Purchase cost from our verified Baner carpet band; rent levels shown as a range so you can find yours. The net column assumes costs take about a quarter of rent — see below.
What eats the gap between gross and net
- Society maintenance — often the largest single deduction, and higher in amenity-heavy projects.
- Property tax, annually.
- Vacancy. One month empty between tenants costs you 8% of the year’s rent.
- Repairs and repainting between tenancies.
- Brokerage on each new letting.
- Tax on rental income, at your slab, after the standard 30% deduction.
A quarter of gross rent is a reasonable working assumption for the first five items. Your own figures may be better or worse — use them.
What this means, stated plainly
At these levels, rent alone does not make a Pune flat pay for itself against a home loan. If you are buying an under-construction flat as an investment, the return case rests on capital appreciation, not income — and appreciation is a forecast, not a fact. Anyone presenting it as guaranteed is selling.
That is not an argument against buying. If you are buying to live in, yield is the wrong measure entirely — you are buying a home, and the comparison that matters is rent versus buy. It is an argument for knowing which of the two you are doing before you sign.
We are not investment advisers and this is not investment advice — it is arithmetic you can check. For decisions turning on tax or portfolio structure, speak to a qualified adviser.
Three questions before you buy to let
- “What are flats in this society actually let for right now?” Ask for current agreements or listings, not projections.
- “What is the monthly maintenance per sq ft?” Multiply it out before you model the yield.
- “Is there an occupancy certificate?” Without one, add GST to your purchase cost — which lowers every yield number above.
Send us the project, the quoted price and the rent you have been told to expect. We will work the real net yield with the actual carpet area and all-in cost, and tell you what comparable flats nearby are letting for. Free. WhatsApp us · How we get paid
Published by Guiding Property, an independent MahaRERA-registered advisory (A031262401718), Pune. Purchase costs derived from our published carpet-area rate bands, reviewed 13 September 2026. Rent figures are illustrative levels, not a claim about any specific project.
