Are you thinking about generating rental income in Hitech City? That’s a great idea.
Especially in the Hitech City location? Wow… fantastic. It’s a premium location; earning rental income there pretty much sets you up for life—haha!
I know what your next question will be: just how much rental income can you expect? ₹25,000, ₹40,000, ₹60,000, or perhaps even more?
I’ve also noticed that if you own property in Hyderabad, you know the feeling. When monthly rental income is received in your bank account.
I am sharing this with you based on my seven years of experience; I have observed many people who bought apartments on loans, the EMIs they pay, and the challenges they face. 5
First, I will tell you how to calculate rental yield for flats in Hyderabad. And then we will discuss all the important points.
How to Calculate Rental Yield in Hyderabad Apartments
I’ve seen a lot of people in Hyderabad who don’t know how to calculate rental yield.
You only need 3 things:
- Apartment Price
- Monthly Rent
- Yearly Rent
That’s it. Nothing else.
Step 1: First, you need to know your rental income
If your apartment gives you a rental income of ₹40,000 every month. So, Your Monthly Rent = ₹40,000
Step 2: You can calculate the rental income for one year
You should calculate the rental income like yearly rental income / 12.
₹40,000 × 12 = ₹4,80,000
This is your yearly rental income. Got it?
Step 3: Calculate Rental Yield
I think you have seen many formulas for rental income calculation. I am giving you a simple formula. You need to use that.
- Rental Yield (%) = (Yearly Rent ÷ Property Price) × 100
You can check an example.
- Apartment Price = ₹1 Crore
- Yearly Rent = ₹4,80,000
Now divide: ₹4,80,000 ÷ ₹1,00,00,000 = 0.048
Now multiply by 100. 0.048 × 100 = 4.8%
So, your rental yield is 4.8%. It’s very easy. You don’t need to remember big formulas.
I have compared two projects; one is ready to move, and the other is under construction: Savya The Edition vs GHR Titania
How Much Rental Income Can You Earn in Hitech City?
Let’s move on to a very important question—one that many people ask me.
How much rent can you actually earn?
Honestly, there is no fixed answer.
I would say that rental income depends on several things, such as:
- Apartment location
- Builder reputation
- Apartment size
- Amenities
- Furnished or unfurnished
- Age of the apartment
- Distance from IT offices
I will give some examples. So, you can easily understand.
Example 1: Apartment Worth ₹80 Lakhs
Suppose you buy a good 2 BHK apartment worth around ₹80 Lakhs.
I can say that depending on the project and location, you may earn around ₹28,000 to ₹35,000 per month as rent.
If the apartment is well maintained and close to IT offices, you may get tenants quickly.
Example 2: Apartment Worth ₹1 Crore
Suppose you buy a premium apartment worth around ₹1 Crore. I would say that monthly rent may be around ₹35,000 to ₹45,000.
I have seen that some apartments with better interiors or a prime location, they can get rent more in hitec city.
Example 3: Luxury Apartment Worth ₹1.5 Crore
I think you might know that luxury apartments usually attract higher-income tenants.
If you buy a luxury apartment in a premium gated community, the monthly rent can be around ₹50,000 to ₹70,000 or even more, depending on the project, furnishing, and location.
You should keep in mind that these are only general examples.
Actual rent depends on market conditions and the specific apartment you choose.
If you are thinking of buying a luxury apartment in Hitec City. You can consider this project: Savya The Edition Review in Hitech City
What Is Considered a Good Rental Yield?
I know that many people have this question: what is a good rental yield?
Personally, I think 3% to 5% is generally considered a healthy rental yield for apartments in Hyderabad.
| Rental Yield | Meaning |
|---|---|
| Below 3% | Lower rental return |
| Around 3% to 4% | Good rental return |
| Around 4% to 5% | Very good rental return |
| Above 5% | Excellent, but always verify whether the rent is sustainable |
We are aware that lots of people in Hyderabad are confused about which is better: Hitech City vs Financial District
Can Rental Income Cover Your Home Loan EMI in Hyderabad Flats?
I think this is a very important question, and many people have this question.
Can my rental income pay my home loan EMI?
The simple answer is… Yes, it can help.
But you should keep in mind that in most cases, the rent may not cover the full EMI, especially during the first few years. Because I have seen many buyer those who have suffered these things…
So, here, you may still need to add some money from your salary every month.
You can see below some example, If you check, you will get some idea. If you have doubts and want to check, you can check it on the official TS-RERA website
Example 1: Home Loan with Rental Income
Suppose you are buying an apartment for ₹1 Crore.
In this case, you have to pay ₹20 Lakhs as the down payment.
So, you will get a home loan of ₹80 Lakhs for 20 years. Let’s we can assume your monthly EMI is around ₹68,000.
Now you rent out the apartment. Your tenant pays ₹42,000 every month.
Let’s calculate.
- Monthly EMI = ₹68,000
- Monthly Rent = ₹42,000
You only need to add ₹26,000 from your own pocket every month.
Think about it.
Instead of paying the full ₹68,000 yourself, your tenant is already paying ₹42,000 for you.
That is a big support.
Another Simple Example
We should see another situation.
You can see that apartment Price = ₹90 Lakhs
- Loan = ₹70 Lakhs
- EMI = ₹58,000
You might get monthly Rent = ₹40,000
Now your calculation looks like this.
- EMI = ₹58,000
- Rent = ₹40,000
- You add only ₹18,000
Personally, I think this is much easier than paying the full EMI yourself.
Based on what I’ve seen, many people say the rental income reduces your monthly burden.
Guide: 11 ways to verify luxury apartments
You Should Expect Rent to Pay the Full EMI
I want to tell you one thing.
I would say that many first-time buyers think,
“If I buy an apartment, the tenant will pay my entire EMI.”
Do you know that? This doesn’t happen in most cases. Especially in cities like Hyderabad.
I know that rental income helps a lot, but you should be financially ready to pay the remaining amount yourself.
I suggest that before buying, you need to calculate your monthly budget carefully.
What Happens After 20 Years?
Now, we can see an interesting part. We will take one example.
- Rahul paid his EMI every month.
- His tenant also paid rent every month.
- After 20 years, Rahul finished paying his home loan.
- Now the bank loan is completely closed.
And we see that good news. The apartment is fully his.
No more EMI. His apartment is still giving him rent every month.
Let’s say the rent has increased over the years.
Instead of ₹42,000, Rahul is now getting ₹60,000 per month.
His calculation now looks like this.
- Home Loan EMI = ₹0
- Monthly Rent = ₹60,000
Every month, the full rent comes into his bank account.
You might know that real estate is a long-term investment. You have to be patient with a long-term investment.
Read – Why Banks Reject Flat Loans
Why Does Hitech City Have High Rental Demand?
You may have seen other locations in Hyderabad, but you won’t find a premium location quite like HITEC City anywhere else; it is truly a prime area.
For example, if you were to buy an apartment in an area like Attapur, your rental income would be lower than in HITEC City, where rental yields are significantly higher.
This is because HITEC City is an ultra-location. This creates strong rental demand.
Based on what I’ve seen, apartments located near IT offices will get good benefits like higher rents.
I must say that, but IT companies are not the only reason.
People also like Hitech City because it has almost everything nearby.
You can find:
- Good schools
- Hospitals
- Shopping malls
- Restaurants
- Supermarkets
- Metro stations
- Good roads
- Easy access to the Outer Ring Road (ORR)
Because of these facilities, many families also prefer to rent here.
If I were buying an apartment for rental income, I would definitely check how close the project is to offices, metro stations, and daily needs.
These small things can make a big difference when finding tenants. You have to verify RERA Registration for Flats
Why Do People Buy Apartments for Rental Income in Hitec City?
I have seen it myself—so many people in Hyderabad buy flats just to earn rent.
They want to start a rental income so that money comes into their account every month like a silent salary. If they lose their job or their business slows down, this rent works as a perfect backup income.
That is why everyone wants to start a rental income.
I have personally seen many businessmen and NRIs buy apartments just for this monthly rent.
And honestly, their thinking is absolutely right. In today’s times, having a fixed rental income is super important. But you need to make sure that you understand Property Ownership rules.
Suppose your apartment gives you ₹45,000 every month. Whether you are working, travelling, or spending time with your family, your tenant pays rent every month.
This is the power of Rental Income… It means passive income while you sleep. You can earn money.
Which Option Is Better?
I would say that many buyers ask this question.
Should I buy with a home loan or with cash?
Honestly, there is no single answer.
Please buy according to your financial situation, and you need to verify land ownership.
A Home Loan May Be a Good Choice If:
- You don’t have the full amount
- Your monthly income is stable
- You can comfortably pay the remaining EMI
- You want to start investing without waiting for years
Buying with Cash May Be Better If:
- You already have enough money
- You don’t want to pay interest to the bank
- You want rental income from the first month
- You don’t like the pressure of monthly EMIs
In my view, you should never choose an option just because someone else did.
You must choose the option that suits your income, savings, and long-term goals.
You need to Avoid Flat Scams
One Thing I Always Tell Buyers
If I were buying an apartment only for rental income, I would ask myself these questions first:
- Can I comfortably pay the EMI if the apartment stays vacant for a few months?
- Is this project in an area where tenants are always looking for homes?
- Will this apartment still have good rental demand after 10 or 15 years?
- Am I buying from a trusted builder?
Believe me, asking these simple questions before buying can save you from many future problems. I would say that while buying a flat, you have to verify the OC and the Guide to Encumbrance Certificate (EC)
Check – HMDA Fraud & Safety Guide.
My Opinion
If I were buying an apartment mainly for rental income, I wouldn’t simply ask.
“Which area is better?”
Instead, I would ask,
- Which project has higher rental demand?
- Which builder has a better reputation?
- Which apartment will be easier to rent?
- Which location has better future growth?
You need to choose a good project and a good builder.
You can go through:
- Plot Registration Process Step-by-Step
- Identify Fake Plot in Hyderabad
- What is the LP Number in Hyderabad?
- How to Check HMDA Layout Approval Online