What is yield defined as in real estate?

Yield in real estate is defined as the rate of return on investment. It reflects the income generated by a property relative to its value or investment cost. When investors assess the yield, they are evaluating how effectively their capital is being employed to generate income from a property, such as rental income or appreciation in value over time.

In practical terms, yield can often be expressed as a percentage, which allows investors to compare the profitability of various investment opportunities within the real estate market. Understanding yield is crucial for making informed investment decisions, as it helps assess the performance of a property and the potential for future earnings.

The other options, while they may relate to business or appraisal practices, do not accurately describe yield in the context of real estate investment. Overall capitalization might touch on related concepts but does not capture the specific meaning of yield. Stopping to review work and letting another speak first are not relevant to financial performance or investment analysis in real estate.