Rental yield tells you how much rent a property earns each year compared with its price. It is a quick way to compare two properties, or to judge whether an asking price is reasonable for investors.
Gross rental yield = annual rent divided by the property price, multiplied by 100.
Take a flat priced at ₹50,00,000 that rents for ₹20,000 a month. Annual rent is ₹2,40,000, so the gross yield is 4.8%.
Subtract these before you compare properties, and treat the result as an estimate. You can try your own numbers with the free rental yield calculator from My Property Pages.