Rental Yields in Mumbai: What a Luxury Property Really Earns

The gross number

2.5–3.5% gross — this is a capital market, not an income market in Mumbai. That is the number to start from, not the number to plan with.

South Mumbai and the western sea-facing corridor remain the country's benchmark for prime residential value. Supply of genuinely prime, redevelopment-free stock is small and shrinking.

What comes off the top

Service charges, management fees, letting commission, insurance, maintenance reserve and void periods. In prime markets these routinely absorb a fifth to a third of gross rent, and service charges on branded or amenity-heavy buildings are the most commonly underestimated line.

Tax matters too: stamp duty and registration; capital gains and rental income taxable in india

Where the demand actually is

Malabar Hill & Altamount Road: Ultra-prime, generational holders.

Worli & Lower Parel: New towers, corporate leasing depth.

Bandra West: Best lifestyle liquidity; scarce land.

How we underwrite it

Ten months of occupancy, three years of comparable evidence, and a resale assumption of flat real pricing. If the case only works on twelve months and rising rents, it is not a case — it is a hope.

Redevelopment and society approvals can stall a resale for years. Check the building's status first.