bengaluru kolkata and bengaluru have the highest residential rental yields among the 14 major indian cities a report from property portal magicbricks said the rental yield in kolkata is 39 and in bengaluru 37 this is followed by hyderabad 36 and ghaziabad 33 the national average across all residential asset types is 3markets with cheaper real estate capital values were found to have higher yields the four cities which top the yield have an average capital value of about rs 5500 per sqft while cities such as new delhi and mumbai where average capital value is more than rs 9000 per sqft produce yields of between 25 and 28oversupply of houses dampens rental yieldsthis should not be surprising considering the high capital values and low rentals the report said such low yields magicbricks said show residential investment purely on the basis of rental yield is not sustainable as it is less than half of the prevailing fixed deposit rate offered by banksother low average capital value cities like noida and greater noida have midlevel yields because over the past 1218 months considerable fresh supply has entered the market with many underconstruction projects receiving occupation certificates this oversupply has dampened the rentals hence in spite of low capital values the yields are in the midrangethe report also said that other things being equal furnished properties command higher rental and yield is disproportionate to investment made towards furnishings at the panindia level the yield on furnished properties is 33 semi and unfurnished have yields of 29 and 27 respectivelylow yields however mean that the indian rental residential market remains affordable almost twothirds of properties listed for rent fall in the rs 35000month and less rent bracket within this segment almost 50 properties are in rs 1500025000month rent rangebuilder floors low rise buildings with two to four floors where each floor is an independent dwelling offer the highest rental return at 31 followed by multistorey apartments at 3large format and high capital value assets like villas and residential houses have lower yields of 24 and 29 respectively