Rental yield helps investors compare the income potential of different properties. To estimate gross yield, divide annual rent by the property purchase price and multiply by 100.
For example, a property bought for NGN 100,000,000 and rented for NGN 6,000,000 per year has a gross yield of 6 percent. Net yield is more accurate because it accounts for service charge gaps, maintenance, vacancy, agency fees, taxes, and management costs.
Strong rental demand, good access roads, security, power, water, and estate management quality all influence long-term returns.