2 BHK vs 3 BHK: Which Unit Gives Better Rental Yield?

Source: Global Property Guide, Q2 2026. Luxury homes in prime areas yield closer to 2% to 2.6%.

Rental yield tells you how much rent you earn each year as a share of the home's price. The formula below makes it easy to work out.

Gross Rental Yield = (Monthly Rent × 12) ÷ Property Price × 100

For example, a ₹2.55 Cr home that rents for ₹65,000 a month earns ₹7.8 lakh a year. That gives a gross yield of about 3.06%.

Net yield is what you earn after costs like maintenance, property tax and vacant months. It can run 1.5 to 2 points lower than gross yield.

• More tenants can afford a 2 BHK, so you find tenants faster.
• Shorter gaps between tenants mean fewer months without rent.
• Young couples and small families form the biggest group of renters.
• Rent per sq ft on smaller homes tends to be a little higher.
• Lower purchase price means your money works harder for each rupee of rent.

In Borivali West, 2 BHK homes rent for about ₹48,000 a month on average. New homes in branded townships earn well above this average.

• Monthly rent is higher, so your total income is larger.
• Tenants in 3 BHK homes tend to stay longer, as families move less.
• Corporate leases for senior staff tend to ask for 3 BHK homes.
• You can move in later as your own family grows.
• Larger homes remain in short supply in premium suburbs.

A 3 BHK works best when you plan to live in it after a few years of renting.

These examples use price points from Prestige Grove Park, a premium township in Borivali. Rents are estimates for new, branded homes and may vary at possession.

The smaller 2 BHK and smaller 3 BHK give the best yields in this range. Larger homes of each type cost more per unit of rent.

Yield assumes your home stays rented all year, which rarely happens. Even one empty month cuts your yearly rent by over 8%. That is why faster-renting homes can earn more in real terms.

Rental yields in Mumbai sit lower than in many Indian cities because home prices are high. So most investors here earn their main return from price growth, not rent. Borivali West prices have risen by about 30% a year in recent cycles.

Treat rent as a steady bonus that covers part of your costs. The bigger gain tends to come when you sell after major projects like the Thane tunnel open.

• Buy a smaller unit within your chosen home type.
• Pick a higher floor with good light and views.
• Offer a semi-furnished home with wardrobes and a modular kitchen.
• Choose a project with strong security, parking and a clubhouse.
• Keep rent close to market rates to avoid long vacant spells.