The measure that reveals how hard your property is working to generate income compared to its cost.
Definition of Yield in Real Estate
Yield is the annual rental income expressed as a percentage of the property’s purchase price.
It shows the efficiency of an investment by comparing what you earn every year against what you paid to own it.
For example, if a property bought for ₹1 crore earns ₹4 lakh per year in rent, its gross yield is 4 percent.
Why It Matters
Yield helps you evaluate property performance and compare it to other investment options. It:
- Shows whether your property is producing adequate income
- Helps compare different property types or localities objectively
- Guides reinvestment and loan planning decisions
- Connects directly to long-term returns and appreciation potential
Ignoring yield can make even premium-looking properties financially unproductive.
How It Works
There are two types of yield commonly used:
- Gross Yield: (Annual Rent ÷ Property Cost) × 100
- Net Yield: (Annual Rent – Maintenance and Taxes) ÷ Property Cost × 100
In Indian metros, residential yields typically range between 2.5 and 4 percent, while commercial properties can deliver 6 to 9 percent depending on demand and tenant stability.
How BrickFi Uses This
Returns measured by data, not guesswork. BrickFi calculates yield projections as part of its property evaluation framework.
- The Investment Score incorporates both gross and net yield estimates
- The Brick360 Report provides realistic rental benchmarks and cost breakdowns
This ensures investors see transparent, data-backed yield potential before making a decision.
Buyer Action
Practical steps to assess yield effectively:
- Calculate both gross and net yields before purchase
- Compare rental returns with local averages and inflation
- Factor in maintenance, vacancy, and property tax costs
- Use yield as one of the key filters while shortlisting investment properties
Related Terms
Net Operating Income (NOI) | Maintenance Charges | Investment Score | Brick360 Report
Key Takeaway
Yield turns emotion-driven buying into measurable investing. Tracking it helps you understand whether your property is growing your wealth or simply tying up your capital.
Where BrickFi Comes In
BrickFi evaluates yield with precision using verified rental data and cost analytics. By showing true income potential, it helps you build a portfolio that earns consistently instead of speculating on appreciation alone.
