Rental yield is often quoted as a single headline number, but the gap between gross and net yield can be a full percentage point once CAM, vacancy and tax are included. This guide explains the calculation and sets realistic expectations for a first-time investor.
Typical net residential yield, Gurgaon
2–4%
Typical yield, pre-leased commercial
6–8%
Realistic annual vacancy allowance
1–2 mo
CAM drag on gross yield, luxury segment
30–50 bps
What the data says
Gross rental yield is calculated as annual rent divided by property value, but ignores maintenance, property tax, vacancy and management cost, so it overstates the real return.
Net rental yield deducts CAM charges, property tax, insurance and a realistic vacancy allowance from annual rent before dividing by property value, giving a more honest comparison figure.
Residential yields in most Gurgaon corridors sit in a modest 2–4% net range, while pre-leased commercial assets can offer meaningfully higher yields, reflecting the different risk and liquidity profile.
An advertised yield significantly above the corridor norm usually reflects an optimistic rent assumption rather than an unusually good deal, and should be independently verified against actual registered lease deeds.
How EstateVeda executes this
Benchmarking any quoted yield against actual registered lease transactions in the corridor.
Recalculating gross yield into a net figure using realistic CAM, tax and vacancy assumptions.
Advising on the trade-off between residential and commercial allocation based on the investor's liquidity needs.
Providing ongoing yield monitoring once a rental property is acquired.
Risks we underwrite against
Relying on portal-listed asking rents rather than actual closed transactions to estimate yield.
Ignoring vacancy periods between tenants, which meaningfully lowers realised annual yield.
EstateVeda verdict
Always evaluate net yield, not gross, and treat any quoted figure well above the corridor norm as a reason for closer scrutiny, not excitement.
Frequently asked questions
What is considered a good rental yield in Gurgaon?
A net yield of 3–4% is considered reasonably good for residential property in established Gurgaon corridors, with corporate-catchment locations sometimes doing slightly better.
Why is my actual rental yield lower than advertised?
Advertised figures are often gross yield based on optimistic rent assumptions, while actual net yield accounts for maintenance, tax, vacancy periods and management cost, which typically reduce the number meaningfully.
Is commercial property yield always better than residential?
Commercial pre-leased assets typically offer higher yield, but with lower liquidity, longer resale timelines and concentrated tenant risk, so the comparison depends on the investor's broader goals.