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Rental Yield in Pune in 2026: Current Trends and Top Localities With High Returns

Published : December 30, 2025, 11:53 AM

Updated : December 30, 2025, 3:40 PM

Author : author_image krishnanunni

88 views
Summary
In Pune, rental yield typically ranges between 3% and 5% annually, though some micro markets can go higher depending on demand and price levels. Areas like Wakad, Hinjewadi, Baner, Kharadi, and Viman Nagar often deliver better yields (closer to 3.5%–4.5%) due to strong IT/office hubs and student populations, while central luxury localities may show lower yields due to higher property prices. Rental yield is calculated by dividing the annual rent received by the property value and multiplying by 100. Consistent demand, connectivity, and affordable pricing help improve yield prospects.

Rental yields in Pune typically range from 3% to 5% for residential properties, making the city one of India’s more stable rental markets for income-focused investors. Pune offers a balanced mix of steady rental income and long-term appreciation, especially in emerging micro-markets. Understanding rental yield in Pune helps investors identify locations and property types that maximise monthly cash flow. [1]

Rental Yield in Pune (2026) - Quick Details

The Pune rental yield market is driven by consistent housing demand from IT professionals, students, and corporate tenants. [1][2]

MetricPune Rental Market
Avg Rental Yield3% - 5% for residential properties; up to 6%-8% in select commercial zones
Best Yield AreasHinjewadi, Wakad, Kharadi, Hadapsar, Baner
Ideal Property Type1 BHK & 2 BHK apartments in gated societies
Tenant DemandHigh demand from IT professionals, students, and young working couples
Investment StyleSteady rental income with moderate long-term capital appreciation

What Is Rental Yield & How Is It Calculated?

Rental yield shows the annual rental income earned from a property as a percentage of its total purchase price. Understanding rental yield in Pune helps investors compare properties, locations, and asset types based on income potential. [4]

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  • Rental Yield Formula:
    • Rental Yield (%) = (Annual Rental Income ÷ Property Purchase Price) × 100
    • Example (Pune Property Scenario)
  • If you buy an apartment in Pune for ₹80 lakh and earn ₹25,000 per month in rent:
    • Annual Rent = ₹25,000 × 12 = ₹3,00,000
    • Rental Yield = (₹3,00,000 ÷ ₹80,00,000) × 100 = 3.75%

This calculation explains Pune's rental yield and why smaller, well-located apartments near IT hubs often deliver higher yields than larger, premium homes. You can also use a rental yield calculator to estimate returns for any property in Pune.

Average Rental Yield in Pune (Current Market Snapshot)

The average rental yield in Pune for residential properties is 3%-5% annually, with some micro-markets reaching 5.5%-6%. Commercial yields are higher, around 7%-9%, supported by long-term leases. Choosing the right type of rental property can significantly influence your rental yield in Pune. [1] [2] [3] [4] [5] [6]

Property TypeTypical Annual Rental YieldPrimary Tenants
1 BHK / Studio4% - 6%Young professionals, students, bachelors
2 BHK3.5% - 5%IT professionals, small families
3 BHK2.8% - 4%Families, senior executives, expats
Furnished Apartments15%-30% higher rent than unfurnishedCorporate tenants, expats

Insight: IT corridors offer the highest rental yields in Pune, while premium residential zones offer stability but slightly lower yields due to higher property prices.

Commercial Rental Yield in Pune in 2026

Commercial rental yields in Pune are typically 6-10% annually, higher than residential yields, driven by rising office demand, longer leases, and rapid corporate growth in IT corridors and business districts that attract income-focused investors.  [9] [10] [11] [12] [13]

Commercial Rental Yield by Micro-Market (Pune)

LocalityTypical Annual Rental YieldKey Demand Drivers
Hinjewadi6% - 8.5%Major IT hub (Infosys, Wipro, TCS), upcoming Metro
Kharadi6% - 8%EON IT Park, WTC, airport proximity
Viman Nagar6% - 8%Airport access, business centres, and retail demand
Baner / Balewadi5.5% - 7.5%Near Hinjewadi, premium infrastructure
Bund Garden Road6% - 9%Central location, CBD connectivity
Industrial / Warehouse Zones7% - 8.5%Pune-Mumbai corridor, e-commerce & logistics growth

Key Factors Influencing Commercial Rental Yield in Pune

  • Location Advantage: Proximity to IT parks, SEZs, Pune-Mumbai Expressway, and Pune Metro directly boosts Pune property rental returns.
  • Tenant Quality & Lease Duration: Blue-chip tenants typically sign 3 to 9-year leases with escalation clauses, ensuring stable, appreciating rental income.
  • Property Type: Offices, retail, and warehouses perform differently; industrial and warehouse assets currently have the highest yields.
  • Infrastructure Growth: Projects such as Pune Metro Phase 1 and the Pune Ring Road are creating new commercial growth corridors.
  • Market Conditions: Demand remains resilient, but some micro-markets are facing up to 25% vacancy due to new supply, affecting short-term yields.
  • Investor Insight: Commercial assets in Pune generate higher cash flow than residential properties but require investors to consider tenant quality, vacancy risk, and long-term capital appreciation with high rental yields.

Best Areas in Pune for High Rental Yield

In 2025, Pune's top rental yields are around major IT corridors and commercial hubs, with high tenant demand keeping vacancies low and yields high for residential and commercial investors. [14] [15]

1. Hinjewadi, Pune

  • Tenant profile: IT professionals, tech employees, bachelors
  • Average rental yield: 4.5% – 6% (up to 8% in premium projects)
  • Why it works: Large IT parks, strong rental demand, ongoing metro connectivity boost
  • Property trend: High supply of 1 & 2 BHKs preferred for rental income

2. Kharadi, Pune

  • Tenant profile: IT professionals, corporate executives
  • Average rental yield: 4.5% – 6% (commercial up to 10%)
  • Why it works: EON IT Park, good social infrastructure, proximity to airport
  • Property trend: Premium 2–3 BHKs and studio apartments see strong demand

3. Wakad, Pune

  • Tenant profile: Young IT families, students
  • Average rental yield: 4.8% – 5.2%
  • Why it works: Close to Hinjewadi, Mumbai-Pune Highway access
  • Property trend: Gated societies with amenities preferred

4. Viman Nagar, Pune

  • Tenant profile: Students, corporate tenants, expats
  • Average rental yield: 4.5% – 7%
  • Why it works: Near airport, malls, colleges, business hubs
  • Property trend: High demand for fully furnished apartments and PG-style rentals
Flat for Rent in Viman Nagar, Pune

5. Baner, Pune

  • Tenant profile: High-income professionals, entrepreneurs
  • Average rental yield: 4.2% – 5.5% (commercial up to 9%)
  • Why it works: Growth of Baner–Balewadi tech belt, premium lifestyle options
  • Property trend: Luxury 3 BHKs and penthouses gaining traction

6. Magarpatta City, Pune

  • Tenant profile: Corporate employees, families
  • Average rental yield: 6% – 9% (commercial & mixed-use)
  • Why it works: Integrated township, walk-to-work ecosystem
  • Property trend: Family tenants prefer 2–3 BHKs in gated campuses

7. Pimpri–Chinchwad, Pune

  • Tenant profile: Industrial workers, IT professionals
  • Average rental yield: 7% – 9% (commercial), 4% – 5% (residential)
  • Why it works: MIDC industries + IT parks, infrastructure upgrades
  • Property trend: Affordable housing gives better rental yield
Flat for Rent in Pimpri–Chinchwad, Pune

8. Tathawade, Pune

  • Tenant profile: IT professionals, students
  • Average rental yield: 4.5% – 5.5%
  • Why it works: Close to Hinjewadi & colleges, upcoming metro connectivity
  • Property trend: Studio and compact 2 BHKs in high demand

9. Undri, Pune

  • Tenant profile: Budget-conscious families, working professionals
  • Average rental yield: 5% – 6%
  • Why it works: Affordable property prices, peaceful residential setup
  • Property trend: 2 BHK independent flats popular among families

10. Wagholi, Pune

  • Tenant profile: Mid-income professionals, IT workforce
  • Average rental yield: 4.5% – 5.5%
  • Why it works: Proximity to Kharadi IT zone, upcoming Ring Road boost
  • Property trend: Under-construction properties offer appreciation potential

Insight: Locations near IT parks, schools, and transport routes have the highest rental yields in Pune. Suburbs like Tathawade and Undri offer good rental income plus growth potential.

Rental Yield by Property Type in Pune

Rental yield in Pune varies significantly by property configuration, level of furnishing, and tenant profile. 

  • Apartments vs Independent Houses: Apartments typically offer rental yields of 3.5% to 6%, particularly in 1 BHK and 2 BHK units near IT hubs. Independent houses generally offer lower yields, around 2.5% to 4%, due to higher capital values and maintenance costs.
  • Furnished vs Unfurnished Rentals: Furnished homes generate 15%-30% higher rents, pushing residential rental yield to 4.5%-6%, compared to 3%-4.5% for unfurnished units, particularly in Kharadi, Hinjewadi, and Viman Nagar.
  • Gated Societies vs. Standalone Buildings: Gated communities in Pune yield 4%-5.5% higher rentals due to amenities, security, and tenant retention. Standalone buildings range 3%-4.5% with higher vacancy risk.
  • Co-living & PG Accommodation: Co-living and PG setups can deliver 6%-8% yields, among the best rental yields in Pune, but require active management, compliance, and higher operational involvement.
  • Investor Tip: Understanding short-term vs long-term rentals helps investors choose higher-yield, low-maintenance options. For stable cash flow, furnished apartments in gated societies near IT corridors in Pune offer the best rental yield with manageable risk.

Factors Affecting Rental Yield in Pune

The following factors directly impact average rental returns in Pune's residential and commercial sectors.

  • Infrastructure & Connectivity (Metro Effect): Metro-connected Pune areas offer 3%-4% higher rental yields, with upcoming Ring Road corridors increasing demand and appreciation.
  • Proximity to IT & Industrial Hubs: Locations near IT parks such as Hinjewadi and Kharadi yield 4.5%- 6%, boosted by low vacancies and strong workforce demand.
  • Property Type & Size: Smaller 2 BHK units under ₹80 lakh in Pune give better rental yields than larger luxury apartments with higher prices.
  • Tenant Demographics: Students, IT professionals, and hybrid workers boost rental demand, increasing yields in Pune's education and tech hubs.
  • Commercial Market Dynamics: Office vacancies rise, but industrial and warehouse assets in Pune maintain rental yields of 7%-8.5 % due to logistics growth.

Rental Yield vs Capital Appreciation in Pune

Understanding the difference between rental yield and capital appreciation helps align property investments with cash-flow or wealth-creation goals.

AspectRental YieldCapital Appreciation
FocusRegular monthly rental income and cash flowLong-term wealth creation through price growth
Ideal Areas in PuneHinjewadi, Wakad, KharadiBaner, Kothrud, Punawale
Typical Returns3% - 5% annual rental yield8% - 12% yearly appreciation
Risk ProfileLower risk, stable incomeMarket-cycle dependent growth
Investor TypeCash-flow-focused investorsLong-term, appreciation-driven investors

How NoBroker Can Help with Rental Services?

Is Pune a Good Rental Yield Market? Yes, Pune is attractive for rentals, with strong yields driven by IT hubs, educational institutions, and a growing workforce. NoBroker helps landlords maximise returns by removing brokerage fees, connecting with verified tenants, and managing properties efficiently. NoBroker simplifies rental property management to reduce vacancies and ensure steady cash flow. Services like seamless listing, rent agreements, and tenant management help reduce vacancies and ensure steady cash flow, making Pune rentals more profitable and stress-free for investors.

Frequently Asked Questions?

Q1. What is a good rental yield in Pune?

Ans: A good rental yield in Pune is 3-6% for residential and 6-10% for commercial properties, depending on location and property type.

Q2. Which area gives the highest rental yield in Pune?

Ans: The top areas for the highest rental yields in Pune include Hinjewadi, Kharadi, Wakad, and Viman Nagar, driven by IT hubs, student demand, and strong tenant occupancy.

Q3. Is Pune good for rental income investment?

Ans: Yes, Pune offers strong rental yields, low vacancy rates, high tenant demand, and infrastructure growth, making it ideal for income-focused investors.

Q4. Furnished or unfurnished - which gives better yield?

Ans: Furnished apartments provide 15%-30% higher rents than unfurnished units, making them the preferred choice for maximising Pune property rental returns.

Q5. How to increase rental yield in Pune?

Ans: Invest in IT-proximate areas, offer furnished units, include smart home features, and maintain high-quality amenities to boost rental yield in Pune.

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ARTICLE SOURCES
  1. https://propertyaaj.com/blogs/selling-property/best-areas-in-pune-for-rental-income-complete-guide-1034
  2. https://propertyaaj.com/blogs/real-estate-market-trends/rental-yield-patterns-in-punes-it-corridors-855
  3. https://firstpremises.com/rental-yields-in-pune-top-locations-for-investors-in-2025/
  4. https://www.thepropertist.com/blog/a-beginner%E2%80%99s-guide-to-rental-yield-387#gref
  5. https://bramharealty.in/blogs/commercial-vs-residential-property-in-pune-which-is-more-profitable-in-2025/
  6. https://rentok.com/blogs/market-trends/top-cities-with-highest-rental-yield-in-india-in-2025
  7. https://addressadvisors.com/blog/pune-office-market-forecast-2025-what-businesses-should-know
  8. https://goelgangadevelopments.com/real-estate-investment/best-commercial-property-in-pune/
  9. https://winwinproptech.in/why-commercial-property-is-the-next-big-investment-in-pune/
  10. https://propertyaaj.com/blogs/investment-finance/top-10-pune-areas-that-guarantee-the-best-rental-returns-1339
  11. https://www.jllhomes.co.in/blogs/top-10-residential-areas-to-invest-in-2025-pune-edition
  12. https://bramharealty.in/blogs/rental-yield-in-pune-top-localities-giving-the-best-roi-in-2025/
  13. https://www.punerealty.in/news/65/https-www-punerealty-in-news-65-pune-s-game-changer-for-connectivity-and-real-estate-pune-ring-road-s-impact-on-housing-trends-html
  14. https://kumarworld.in/real-estate-trends-in-pune-2025-what-homebuyers-and-investors-should-expect/
  15. https://oreereality.com/rental-yield-vs-capital-appreciation-real-estate/

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