What Type of Property Gives the Best Rental Yield in Chembur
As one of Mumbai’s most sought-after residential suburbs, Chembur continues to attract investors looking for stable rental returns and long-term capital appreciation. With strong connectivity, steady demand from working professionals, and improving lifestyle infrastructure, Chembur’s rental market offers opportunities for diverse property types. However, rental yields can vary significantly based on configuration, location, and condition of the property. Understanding which property type delivers the best rental yield helps investors maximise returns in 2026.
2/7/20263 min read
Understanding Rental Yield
Rental yield is the annual rental income earned from a property, expressed as a percentage of its market value. Higher rental yields indicate better income potential relative to investment cost. In Chembur’s evolving market, certain property types provide superior rental performance due to tenant preferences, demand patterns, and locality appeal.
1. Compact 1 BHK Apartments: High Demand, Strong Yield
One BHK apartments consistently deliver some of the highest rental yields in Chembur. These compact units appeal to a broad segment of tenants, particularly young working professionals and single occupants who prioritise affordability and proximity to transit options.
Key reasons one BHK units perform well:
Lower purchase price compared to larger units allows for stronger yield percentages.
High demand from professionals seeking cost-effective rental options.
Faster tenant turnover as these units cater to short-term and mid-term leases.
Investors who acquire well-located 1 BHK units near transit hubs and employment corridors often see strong rental interest and relatively stable occupancy rates.
2. Efficient 2 BHK Apartments: Balanced Yield and Livability
Two BHK apartments in Chembur also offer attractive rental yields, especially when marketed to small families, roommates, and long-term tenants. While the rental return percentage may be slightly lower than compact 1 BHK units due to higher capital outlay, 2 BHK units command higher absolute rent, resulting in strong overall income.
Investors often prefer 2 BHK units because:
They attract a wider demographic including families and professionals sharing accommodation.
They offer balanced living space with good resale and rental demand.
They benefit from stable, longer-term leases.
For investors focused on consistent rental income and future resale flexibility, 2 BHK apartments remain a compelling choice in Chembur.
3. Premium and Larger Units: Rental Stability Over Yield Percentage
Premium 3 BHK and larger apartments in Chembur appeal to high-income tenants and multinational corporates. While these units generate higher monthly rental values, their rental yield percentage is often lower than compact apartments due to higher purchase costs.
However, larger units are attractive for:
Corporate leases and expatriate housing needs.
Families seeking long-term rental homes with space and comforts.
Tenants who value premium amenities and larger layouts.
For investors targeting stable rental income and lower vacancy risk, premium units offer solid performance, especially in well-connected and lifestyle-rich micro-locations.
4. Furnished and Semi-Furnished Apartments: Higher Rentals, Higher Yield
Properties that are furnished or semi-furnished tend to demand premium rents in Chembur’s rental market. Tenants relocating for work or professionals seeking hassle-free living often prefer furnished units, which deliver immediate move-in convenience.
Advantages of furnished rental properties:
Ability to charge higher monthly rent compared to unfurnished units.
Faster tenant absorption due to convenience factor.
Increased appeal for short-term and corporate tenants.
Furnished apartments typically show stronger rental performance, boosting effective rental yield when compared with comparable unfurnished options.
5. Newly Developed Projects with Amenities: Strong Tenant Attraction
Modern residential developments featuring lifestyle amenities such as fitness centres, landscaped gardens, security services, and community spaces continue to attract tenants, particularly young professionals and families. While these projects may come with higher acquisition costs, their tenant appeal often translates into lower vacancy and better rental stability.
Features that support higher yields include:
Contemporary design and smart home features
Lifestyle amenities aligned with tenant expectations
Proximity to transit and daily conveniences
Properties in these developments may not always produce the highest percentage yield but offer attractive rental demand and long-term value appreciation.
Conclusion
When it comes to the best rental yield in Chembur, compact and efficient units such as one BHK and two BHK apartments dominate due to their strong tenant demand, affordability, and occupancy stability. Furnished and semi-furnished units further enhance rental income potential. Premium and larger homes may offer higher absolute rent, appealing to families and corporate tenants, but typically yield a lower percentage return.
For investors in Chembur in 2026, aligning property choice with tenant preferences, local rental trends, and connectivity factors is key to maximising rental yield. A thoughtful analysis of property type, configuration, and target tenant segment will help ensure strong returns and long-term value in a competitive rental market.
