Buying a Rented Office: Understanding Rental Yield

A rental yield can help you compare investment properties, provided you understand the income and purchase price used in the calculation.

Start with a transparent calculation

Gross annual rental yield = annual rent ÷ property purchase price × 100.

One Nehru Place advertisement, marked as updated on 17 August 2026, asks ₹1.21 crore and reports approximately ₹60,000 in monthly rent.

This is a calculation from one advertiser's unverified claims. The rent, tenancy, price and current availability have not been independently confirmed. It is not a Nehru Place yield benchmark or a property offered here by DS Properties.

Understand what gross yield leaves out

The calculation above excludes purchase costs, periods without rent and owner-paid expenditure.

To assess an unlevered net yield, subtract recurring owner-paid property expenses from annual rental income, then compare that amount with the total acquisition cost. Include assumptions about vacancy and repairs. Review financing and personal tax effects separately.

A property with a higher headline yield may also require more expenditure or have less secure income.

Verify the rental income

For a tenanted property, review the signed lease, evidence of payments, any arrears or concessions, remaining term, escalation and exit provisions.

An advertised expected rent is different from income already being received. Check who pays maintenance and other property expenses.

Consider the property beyond the rent

Review the unit's condition, suitability for future occupiers, building services and ownership documents. Allow for the possibility of vacancy or a longer sale period than expected.

DS Properties can help identify properties in its inventory and coordinate information and viewings. Use independent legal and financial advice to assess the purchase and its assumptions.