Pune has emerged as one of India’s fastest-growing real estate markets, attracting investors due to its robust IT sector, educational institutions, and thriving business ecosystem. For real estate investors, rental yield is a crucial metric that determines profitability. In this blog, we will analyze Pune’s top rental yield locations, helping investors maximize returns in 2025.
What is Rental Yield?
Rental yield is the annual rental income from a property, expressed as a percentage of its purchase price. It is calculated as:
Gross Rental Yield (%) = (Annual Rent / Property Price) × 100
A good rental yield generally ranges between 3% to 5% for residential properties and 6% to 10% for commercial properties.
Top Rental Yield Locations in Pune (2025)
1. Hinjewadi – IT Hub & High Demand for Rentals
- Rental Yield: 4% – 5%
- Property Price: ₹8,000 – ₹12,500 per sq. ft.
- Average Rent: ₹25,000 – ₹40,000/month (for 2 BHK)
- Why Invest?
- Major IT hub with companies like Infosys, Wipro, and TCS
- High demand from tech professionals, ensuring consistent rental income
- Upcoming metro connectivity boosting demand
2. Wakad – Rising Investment Hotspot
- Rental Yield: 4% – 4.5%
- Property Price: ₹9,000 – ₹14,000 per sq. ft.
- Average Rent: ₹22,000 – ₹35,000/month (for 2 BHK)
- Why Invest?
- Proximity to Hinjewadi and excellent social infrastructure
- Increasing demand for premium rentals
- Well-connected to Mumbai-Pune Expressway
3. Kharadi – The IT & Commercial Boom
- Rental Yield: 4.5% – 5%
- Property Price: ₹10,000 – ₹16,000 per sq. ft.
- Average Rent: ₹30,000 – ₹45,000/month (for 2 BHK)
- Why Invest?
- Hosts major IT parks like EON IT Park, Zensar, and World Trade Center
- Consistent demand from IT professionals
- Close to Pune Airport, making it attractive for corporate rentals
4. Viman Nagar – Premium Residential & Rental Demand
- Rental Yield: 4% – 4.8%
- Property Price: ₹12,000 – ₹18,000 per sq. ft.
- Average Rent: ₹35,000 – ₹50,000/month (for 2 BHK)
- Why Invest?
- Proximity to Pune Airport and business centers
- Popular among professionals, expats, and NRIs
- High-end rental demand from corporate executives
5. Baner – High-End Residential & Commercial Growth
- Rental Yield: 3.5% – 4%
- Property Price: ₹11,000 – ₹17,000 per sq. ft.
- Average Rent: ₹28,000 – ₹45,000/month (for 2 BHK)
- Why Invest?
- Premium housing segment with luxury rentals
- Proximity to Balewadi and Hinjewadi IT hubs
- Growing commercial developments attracting tenants
6. Magarpatta City – Integrated Township Advantage
- Rental Yield: 4% – 4.5%
- Property Price: ₹9,000 – ₹14,500 per sq. ft.
- Average Rent: ₹25,000 – ₹38,000/month (for 2 BHK)
- Why Invest?
- IT hubs and self-sustained townships attract steady rental demand
- Ample amenities and security, appealing to families and professionals
7. Hadapsar – Emerging IT & Industrial Hub
- Rental Yield: 3.8% – 4.5%
- Property Price: ₹8,500 – ₹13,500 per sq. ft.
- Average Rent: ₹20,000 – ₹35,000/month (for 2 BHK)
- Why Invest?
- Major IT parks and manufacturing units drive rental demand
- Good connectivity via Pune-Solapur highway
- Growth in retail and commercial establishments
8. Kothrud – Pune’s Well-Established Residential Zone
- Rental Yield: 3.5% – 4%
- Property Price: ₹12,000 – ₹19,000 per sq. ft.
- Average Rent: ₹30,000 – ₹45,000/month (for 2 BHK)
- Why Invest?
- One of Pune’s most developed residential areas
- Excellent connectivity and social infrastructure
- Premium rentals due to educational institutions and business professionals
9. Undri – Affordable Housing & Growing Demand
- Rental Yield: 3.8% – 4.2%
- Property Price: ₹6,500 – ₹9,500 per sq. ft.
- Average Rent: ₹15,000 – ₹25,000/month (for 2 BHK)
- Why Invest?
- Affordable housing with high rental demand
- Popular among IT employees and families
- Rapid infrastructure development
10. Bavdhan – Emerging Investment Destination
- Rental Yield: 3.5% – 4%
- Property Price: ₹9,000 – ₹13,500 per sq. ft.
- Average Rent: ₹18,000 – ₹30,000/month (for 2 BHK)
- Why Invest?
- Well-connected to Kothrud, Hinjewadi, and Baner
- Increasing demand due to upcoming commercial projects
- Good social infrastructure and green surroundings
Conclusion: Where Should You Invest?
If you are looking for high rental yields, consider locations like Hinjewadi, Kharadi, and Viman Nagar due to their IT and corporate demand. For long-term appreciation with decent rental income, Baner, Magarpatta City, and Kothrud are excellent choices. Affordable yet growing markets like Undri and Bavdhan offer budget-friendly investments with rising rental demand.
With Pune’s expanding infrastructure, metro connectivity, and rising employment opportunities, real estate investments in the right locations can yield strong returns. Investors should analyze rental trends, tenant demand, and property appreciation potential before making a decision.
Looking to Invest in Pune’s Rental Market?
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