The rental market in Pune has been growing steadily, thanks to its booming IT sector, top educational institutions, and increasing job opportunities. Whether you’re a property owner looking to rent out your space or an investor planning to buy a property for rental income, knowing the best locations for high rental yields is crucial.
In this blog, we will explore the top rental markets in Pune, factors affecting rental returns, and an example calculation to help you understand potential earnings.
1. Understanding Rental Yield
Before we dive into the best rental locations, let’s first understand rental yield—the key metric for evaluating rental income.
Formula for Rental Yield:
Rental Yield=(Annual Rent/Property Purchase Price)×100Rental Yield=(Property Purchase Price/Annual Rent)×100
For example, if you buy a flat for ₹1 Cr and rent it for ₹30,000 per month, your annual rent is ₹3.6 lakh.Rental Yield=(3,60,000/1,00,00,000)×100=3.6%Rental Yield=(1,00,00,000/3,60,000)×100=3.6%
A good rental yield in Pune is around 3-4% for residential properties and 6-9% for commercial properties.
2. Best Rental Locations in Pune for High Returns
A. IT Hubs – High Demand from Working Professionals
These areas offer steady demand and appreciation due to the presence of IT parks and corporate offices.
- Hinjewadi
- Rental Yield: 3.5% – 4.5%
- Average Rent for 2BHK: ₹22,000 – ₹35,000
- Why Invest? Home to Rajiv Gandhi IT Park, with companies like Infosys, Wipro, TCS, and Cognizant. Always in demand for rentals from IT professionals.
- Best Projects: Life Republic, Megapolis, Eon Homes
- Baner & Balewadi
- Rental Yield: 3% – 4%
- Average Rent for 2BHK: ₹25,000 – ₹40,000
- Why Invest? Premium residential area, close to Hinjewadi IT Park and well-connected to Pune-Mumbai Highway.
- Best Projects: Panchshil Towers, VTP Alpine
- Kharadi
- Rental Yield: 3.8% – 4.5%
- Average Rent for 2BHK: ₹28,000 – ₹42,000
- Why Invest? EON IT Park and World Trade Center attract IT professionals, ensuring steady rental demand.
- Best Projects: YOO Villas, Panchshil Eon Waterfront
B. Education Hubs – Demand from Students & Professors
Pune is called the Oxford of the East because of its many universities and colleges. Rentals in these areas are always in demand.
- Viman Nagar
- Rental Yield: 3% – 4%
- Average Rent for 2BHK: ₹25,000 – ₹38,000
- Why Invest? Close to Symbiosis, Christ College, and Pune Airport, making it a prime rental location for students and working professionals.
- Best Projects: Sky One, Marvel Edge
- Kothrud
- Rental Yield: 3% – 3.8%
- Average Rent for 2BHK: ₹22,000 – ₹35,000
- Why Invest? Well-developed area with reputed colleges like MIT, Bhartiya Vidyapeeth, and Cummins Engineering College.
- Best Projects: Paranjape Schemes, Rohan Garima
C. Emerging Hotspots – Growing Demand & Affordable Prices
These areas offer high appreciation potential along with good rental income.
- Wakad
- Rental Yield: 3.5% – 4%
- Average Rent for 2BHK: ₹20,000 – ₹32,000
- Why Invest? Rapid growth due to its proximity to Hinjewadi, good infrastructure, and upcoming metro connectivity.
- Best Projects: Kohinoor Westview, Pride Purple Park Titanium
- Tathawade
- Rental Yield: 3.5% – 4%
- Average Rent for 2BHK: ₹18,000 – ₹30,000
- Why Invest? Upcoming education hub, close to Wakad and Hinjewadi, making it attractive for students and IT employees.
- Best Projects: Rohan Ananta, VJ IndiLife
D. Premium Locations – Luxury Rentals for High-Income Tenants
If you’re looking for high-end tenants (corporate professionals, expats, or business owners), these areas offer the best luxury rental income.
- Koregaon Park
- Rental Yield: 3% – 3.5%
- Average Rent for 2BHK: ₹50,000 – ₹80,000
- Why Invest? Pune’s most posh locality, home to top business leaders and expats.
- Best Projects: Trump Towers, Vascon Windermere
- Boat Club Road
- Rental Yield: 3% – 3.5%
- Average Rent for 2BHK: ₹45,000 – ₹70,000
- Why Invest? Elite locality near Pune railway station and business centers.
- Best Projects: Marvel Piazza, Clover Water Gardens
3. Example Calculation: Investing in a Rental Property in Pune
Let’s take an example:
- Location: Hinjewadi
- Property Type: 2 BHK
- Purchase Price: ₹1 Cr
- Monthly Rent: ₹30,000
- Annual Rent: ₹3,60,000
- Rental Yield:(3,60,0001,00,00,000)×100=3.6%(1,00,00,0003,60,000)×100=3.6%
This means your rental income will cover 3.6% of your property price annually. With property appreciation, this investment can become even more profitable over time.
4. Key Takeaways: Where Should You Invest for Rental Income in Pune?
- For IT professionals → Hinjewadi, Baner, Balewadi, Kharadi
- For student housing → Viman Nagar, Kothrud, Tathawade
- For affordable rental properties → Wakad, Tathawade, Ravet
- For luxury rentals → Koregaon Park, Boat Club Road
If you’re planning to invest in a rental property, ensure you choose a location with strong demand, good infrastructure, and future growth potential. Pune’s rental market in 2025 continues to be a profitable investment option with steady rental income and high appreciation potential.
Looking to invest? Get in touch with experts at Kiaan Properties to find the best rental properties in Pune! 🚀
