How to Calculate ROI on Pre-Leased Property

Here’s a clear, practical way to calculate ROI on a pre-leased property. This is the method most investors and brokers actually use.

Step 1: Know the basic numbers

You need just two things:

• Total investment value (property price + stamp duty, registration, brokerage, interiors if any)
• Annual rental income (monthly rent × 12)

Step 2: Use the ROI formula

ROI (%) = (Annual Rental Income ÷ Total Investment) × 100

That’s it. Simple and standard.

Example (real-world style)

• Property price: ₹1.50 crore
• Monthly rent: ₹1,32,000
• Annual rent: ₹15,84,000

ROI = (15,84,000 ÷ 1,50,00,000) × 100 = 10.56%

So the property gives you a 10.56% annual return before tax.

Step 3: Net ROI (more accurate)

If you want a more realistic figure, subtract expenses:

• Property tax
• Maintenance
• Vacancy buffer (even in pre-leased assets)

Net ROI formula:
(Net Annual Rent ÷ Total Investment) × 100

This is what serious investors look at.

Bonus: Why pre-leased ROI matters

• Income starts from day one
• Tenant risk is lower
• Easier resale to investors
• Banks also prefer stable rental assets

If you want, I can:

• Calculate ROI for a specific property you’re selling
• Help you present ROI cleanly for Instagram or your website
• Compare pre-leased vs vacant property returns