Mumbai’s real estate market is known for high capital appreciation, but in 2025, rental yield has become an equally important metric for homebuyers and investors. Whether you’re searching for a properties in Mumbai, or exploring prime micro-markets, understanding rental yield helps you calculate long-term returns.
This guide breaks down rental yield trends across Bandra, Khar, Andheri, Versova, Goregaon, Malad, Kandivali & Borivali, making investment decisions easier and data-driven.
Table of Contents
- What Is Rental Yield & Why It Matters
- Western Suburbs Overview (Bandra to Borivali)
- Rental Yield Comparison: Western Suburbs (2025 Data)
- Micro-Market Insights (Area-wise Breakdown)
- Best Areas for Investors vs. End Users
- Factors Driving Rental Demand in Western Suburbs
- Future Trends (2025–2027 Forecast)
- People Also Ask
- Final Verdict: Where Should You Invest?
- Strong CTA for A2Z Realtors
1. What Is Rental Yield & Why It Matters
Rental yield = (Annual Rent / Property Value) × 100
It helps investors understand how much passive income an asset generates yearly.
Why rental yield matters in Mumbai:
- High property prices → higher need for ROI clarity
- NRIs & investors prefer stable rental flow
- Western suburbs see 20–35% higher rental demand post-COVID
2. Western Suburbs Overview (Bandra → Borivali)
Western Mumbai is the #1 rental hub due to:
✔ Metro connectivity, SV Road, Link Road
✔ Proximity to IT parks, production houses, corporate hubs
✔ Lifestyle attractions: malls, beaches, cafés
✔ Availability across budgets (premium → mid-range)
Areas covered: Bandra, Khar, Santacruz, Juhu, Andheri, Versova, Oshiwara, Goregaon, Malad, Kandivali, Borivali
3. Rental Yield Comparison: Western Suburbs (2025 Data)
Rental Yield Table (Approx. Averages – 2025)
| Location | Avg Property Price (₹/sq ft) | Avg Rent (2/3 BHK) | Rental Yield |
|---|---|---|---|
| Bandra West | ₹55,000–₹70,000 | ₹1.2–2.5 L | 2.2% – 2.8% |
| Khar West | ₹45,000–₹55,000 | ₹90k–1.8 L | 2.3% – 3% |
| Juhu | ₹45,000–₹60,000 | ₹1–2.2 L | 2% – 2.6% |
| Andheri West | ₹32,000–₹45,000 | ₹65k–1.4 L | 2.8% – 3.4% |
| Versova | ₹26,000–₹36,000 | ₹55k–1.2 L | 3% – 3.7% |
| Goregaon West/East | ₹22,000–₹32,000 | ₹45k–95k | 3.2% – 4% |
| Malad West | ₹20,000–₹28,000 | ₹40k–85k | 3.4% – 4.1% |
| Kandivali West/East | ₹18,000–₹26,000 | ₹35k–75k | 3.3% – 4% |
| Borivali West/East | ₹16,000–₹24,000 | ₹30k–65k | 3.2% – 3.9% |
4. Micro-Market Insights (Area-Wise Breakdown)
1. Bandra West
- Premium lifestyle, NRIs, expatriates
- High rent but high purchase cost → moderate yield
- Great for luxury investors
2. Khar & Santacruz
- Strong demand from corporate executives
- Slightly better yield than Bandra due to moderate capital cost
3. Andheri West (Top Performer for Investors)
- High demand for flats in Mumbai due to:
✔ Film industry
✔ Corporate offices
✔ 3 Metro lines - Ideal mix of affordability + rent
- One of the best locations to buy property in Andheri for rental income
4. Versova
- Creative community, seaside lifestyle
- Popular among actors, editors, freelancers
- Above-average rental growth
5. Goregaon
- IT/Media hub + Filmcity
- High rental absorption
- Best yield among mid-luxury areas
6. Malad & Kandivali
- Affordable entry price
- Rapid metro & commercial development
- Very high rental yield for mid-segment investors
7. Borivali
- Family-driven rental market
- Stable yields + low vacancy rates
5. Best Areas for Investors vs End Users
Best Rental Yield (Investors)
Malad, Goregaon, Kandivali, Versova, Andheri West
➡ 3.4% – 4.1% yields consistently
Best for Lifestyle + High Demand (End Users)
Bandra, Juhu, Khar, Andheri West
➡ Premium lifestyle + strong resale value
6. Factors Driving Rental Demand in Western Suburbs
✔ Metro Lines 2A, 7 & upcoming connectivity upgrades
✔ Corporate relocations to Andheri–Goregaon belt
✔ Colleges, hospitals, social infrastructure
✔ Influx of working professionals & expats
✔ Short-stay rental boom in Bandra–Juhu–Versova
7. Future Trends: 2025–2027 Forecast
🔹 Andheri–Goregaon belt expected rental rise: 8–12% yearly
🔹 Malad–Kandivali to see highest yield stability
🔹 Premium markets (Bandra/Juhu) will see higher rent but lower yield
🔹 Metro completion = rental rate jumps across Link Road & SV Road
8. People Also Ask
Q1. Which area in Mumbai has the highest rental yield?
Malad, Goregaon and Kandivali currently offer the highest rental yield (3.5–4%+) in Mumbai’s western suburbs.
Q2. Is Andheri West good for rental investment?
Yes. Due to high corporate demand, metro connectivity and entertainment industry jobs, Andheri West offers 2.8%–3.4% yield, making it ideal for investors buying a property in Andheri.
Q3. Which is better for long-term investment? Bandra or Andheri?
Bandra offers higher lifestyle value, but Andheri offers better rental returns at lower entry price.
Q4. Are flats in Mumbai profitable for rental income?
Yes. Western suburbs flats in Mumbai provide stable rental occupancy + strong long-term capital appreciation.
9. Where Should You Invest?
If your goal is maximum rental income, choose:
➡ Malad, Goregaon, Kandivali, Versova
If your goal is long-term appreciation + lifestyle + rental, choose:
➡ Andheri West (Best balanced market)
If your goal is luxury rental audience, choose:
➡ Bandra, Juhu, Khar
10. A2Z Realtors
Looking to invest in a high-yield rental property in Mumbai’s western suburbs?
A2Z Realtors helps you find the best-performing homes, verified builders, premium inventory and negotiation support.
Call/WhatsApp: (+91) 9664315175, to get a personalised rental-yield investment report.
Visit A2ZRealtors.in – Your Western Suburbs Property Partner.
