Property investors should focus not just on monthly rent but on rental yield, as reported by Bhaskar English. Rental yield refers to the percentage return a property earns each year compared to its total purchase price.
According to data from the Global Property Guide (H1 2026), Kolkata offers the highest gross rental yield in India at 6.38%. This is significantly higher compared to other major cities in the country.
On the other hand, Hyderabad is experiencing the fastest rental price growth in the country, with rents surging by 15% year-on-year, according to Magicbricks Q1 2026 data. This marks the fastest rental growth among job-centric cities.
Ankit Aggarwal, Director at Devika Group, notes that the average gross rental yield benchmark in urban Indian markets sits between 4% and 5%. He advises that if a property offers a yield higher than 5%, investors must check three critical factors: the specific locality, tenant demand in the area, and the overall quality of the property.
Aggarwal stresses that investors should evaluate micro-markets (local neighborhoods) individually instead of relying on broad market trends. This approach leads to more accurate investment decisions.
The rapid rental growth in Hyderabad, Telangana, indicates attractive opportunities for investors in Andhra Pradesh and Telangana. However, considering Kolkata's higher yield, investors should carefully evaluate their decisions.
