₹2.5 crore flat, ₹45,000 rent: The brutal math behind Mumbai’s falling rental yields

A Powai 2BHK worth ₹2.5 crore earns just ₹45,000/month—barely a 2.16% rental yield. After taxes and costs? Even less than inflation.

Owning a home here still screams status—but for investors focused on income and ROI, residential property is falling woefully short.

While homeowners settle for 2% yields, REITs like Mindspace and Brookfield are dishing out 6–7% returns—with zero landlord headaches.

REITs offer monthly income, professional management, and liquidity—something your vacant 2BHK can’t deliver between tenants.

Despite low returns, many refuse to sell due to emotional ties. For some, a Mumbai flat is not an asset—it’s identity, inheritance, and insurance.

Prices rose 7–9% in 2024 in pockets like Chembur and Mulund—thanks to infra projects. But rental yields? Still stuck in reverse.

For debt-free homeowners, even a 2% return is fine. It’s steady, low-risk, and immune to the volatility of equity markets.

Millennials and Gen Zs are ditching old flats for REITs, emerging suburbs, or commercial real estate—where returns meet reality.

In a world demanding returns, liquidity, and flexibility, your low-yield apartment might be dragging down your portfolio more than you realize.