Ask three people what a Gurgaon apartment yields and you will get three answers: 7 percent, 5 percent, and "about 3".
They are all quoting real numbers. They are just quoting different numbers — gross rent against price, gross rent against a price from four years ago, and money that actually reaches a bank account. Only the third one is yield in any sense that matters to you.
This is the arithmetic, done properly, with the deductions nobody puts in the brochure.
What Gurgaon residential actually yields
The honest range: most Gurugram residential property nets 2.5 to 3.5 percent after maintenance, vacancy and brokerage. By segment, the reported gross figures look roughly like this:
- Golf Course Road — 3 BHK rents commonly quoted between Rs 1.1 lakh and Rs 3 lakh a month, against capital values of Rs 3 to Rs 5 crore and above. Gross yields typically land in the 2.5 to 3 percent band. High rent, high price, compressed percentage.
- Mid-segment sectors such as 65 — generally 3 to 3.8 percent gross. The best balance of income and appreciation in the city.
- Newer corridors — lower rents, lower prices, and yields that depend heavily on whether the sector has tenants yet.
You will also see claims of 5 to 7 percent residential yield on Golf Course Road. Treat those with suspicion. They generally divide today's rent by a purchase price from several years ago, which measures how much the asset appreciated, not what it yields to someone buying today.
The worked example
A 3 BHK on Golf Course Road. Purchase price Rs 5 crore. Achieved rent Rs 1.5 lakh a month.
Gross annual rent: Rs 18,00,000. Divided by Rs 5 crore, that is a 3.6 percent gross yield, and this is the number you will be quoted.
Now the deductions.
| Line | Amount per year | Why |
|---|---|---|
| Gross rent | Rs 18,00,000 | Rs 1.5 lakh x 12 |
| Vacancy | - Rs 1,08,000 | About three weeks between tenancies. Premium stock re-lets in 2-4 weeks; assume it will happen. |
| Brokerage | - Rs 75,000 | One month's rent per new tenancy, tenancies averaging two years |
| Repainting and repairs | - Rs 50,000 | Between tenants. Not optional if you want the next tenant. |
| Property tax and owner-side charges | - Rs 15,000 | Varies by unit |
| Net before income tax | Rs 15,52,000 | 3.10 percent on Rs 5 crore |
Then income tax. House property income gets a standard deduction of 30 percent, and the balance is taxed at your slab. For a taxpayer at the top slab, that leaves roughly Rs 12.1 lakh — about 2.4 percent.
And one more line most people never add. Your cost basis is not the sticker price. Stamp duty, registration and incidental costs add materially to what you actually paid, and Gurugram's collector rates were revised upward district-wide effective 1 April 2026, with reported increases from roughly 15 percent in mature areas to as much as 75 percent in the fastest corridors. Include those and the same apartment yields closer to 2.2 to 2.3 percent.
So: quoted 3.6 percent, banked about 2.3 percent. That gap is the entire point of this article.
Which is not an argument against buying
Gurgaon residential is not, and has never been, a yield asset. It is an appreciation asset with a rent stream that partly covers the carrying cost. New Gurgaon has appreciated roughly 48 percent over five years; the Dwarka Expressway corridor has moved far more than that from a lower base.
The mistake is not buying. The mistake is buying for yield, discovering 2.3 percent, and concluding the market is broken. It is behaving exactly as it always has.
Where the rental market is actually moving
One number from the first half of 2026 is worth more than any yield table:
Rental values on the Dwarka Expressway grew about 22 percent year-on-year in H1 2026. New Gurugram grew about 3 percent.
That is not a small difference in degree, it is a difference in kind. The expressway corridor's apartments finished, the road became fully operational, and a tenant pool that previously had no reason to look there arrived all at once.
The caveat matters as much as the number: 22 percent is a catch-up off a low base, not a run rate. Corridors do this once. Do not build a ten-year model on it. But if you are choosing where to buy a letting property today, it tells you where tenant demand is actually going. See our New Gurgaon versus Dwarka Expressway comparison.
Commercial: where the yield actually is
If yield is genuinely your objective, you are in the wrong asset class. Gurugram office rents run from roughly Rs 45 per square foot per month in New Gurgaon to about Rs 200 in Cyber City, with Grade A generally between Rs 100 and Rs 180 and Grade B between Rs 60 and Rs 90. DLF Cyber City asking rents have been quoted around Rs 135 to Rs 160.
The demand side is unusually strong. Global capability centres are the dominant driver of absorption, with Gurugram capturing a very large share of new GCC setups in India, and Grade A vacancy has been tightening. Brokers have been forecasting high single-digit rent growth in prime corridors.
The catch, and it is a serious one:
- Commercial vacancy is measured in months or years, not weeks. The yield premium is compensation for that risk, not a free upgrade.
- The tenant covenant is the asset. A five-year lease with a multinational and a three-year lease with an unknown company are not the same investment at the same yield.
- GST applies to commercial rent in a way it does not to residential letting to individuals. Get the treatment confirmed by your accountant before you model the return, because the rules on who pays have changed in recent years.
Our commercial leasing guide covers the lease structure side properly.
Six things that actually change your yield
- Write a rent escalation clause in. Gurgaon leases commonly escalate 5 to 8 percent annually or on renewal. A lease without one loses you real income silently over three years.
- Furnish only if your tenant pool expects it. Expatriate and senior-executive tenants generally do, and will pay for it. Most other tenant pools will not pay enough to recover the cost.
- Cut vacancy before you chase rent. Three weeks of vacancy costs more than the last Rs 3,000 a month you argued over. Start marketing 60 days before the current tenancy ends.
- Know the TDS position. Tenants are required to deduct tax at source on rent above the applicable thresholds, and the rate differs depending on whether the tenant is an individual or a business. Confirm the current rate with your CA and make sure it is stated in the lease, so it does not turn into an argument later.
- Do not over-improve. Marble in a Rs 60,000-a-month apartment does not raise the rent. The tenant at that rent is choosing on location, floor and how quickly you respond to a leaking tap.
- Buy where the tenant works. The single largest determinant of vacancy in Gurugram is commute time to an office cluster. It beats specification every time.
Our take
Use 2.5 to 3.5 percent net as your residential planning assumption in Gurgaon, and closer to 2.5 percent at the luxury end once tax and closing costs are in. If someone quotes you 6 or 7 percent on residential, ask them to show the calculation with vacancy, brokerage and tax in it. The conversation usually ends there.
Then decide honestly what you want. If you want income, look at commercial and accept the vacancy risk that comes with it. If you want an asset that grows with a rent stream that helps carry it, residential in a corridor where tenants are actually arriving is the right instrument — and right now that points at the Dwarka Expressway rather than at the mature sectors.
Tell us the property you own or are considering and we will run the net yield with you, including the lines the cost sheet leaves out.