'real Estate Won’t Make You Rich': Wealth Advisor Exposes Flawed Math Hurting Indian Investors

The Indian obsession pinch existent property is financially flawed, says Chennai-based wealthiness advisor and worth investor Anand Srinivasan, who calls it "The awesome Indian existent property delusion."

In a LinkedIn post, Srinivasan dismantles nan long-held belief that lodging prices successful India only spell up — and that rental income is irrelevant successful nan look of promised appreciation.

“Rental yields successful India are a dismal 2–3% annually,” he writes — a fig that trails moreover basal savings accounts. Global markets, by comparison, connection 5–6% returns. “At this pace, it could return you 35 to 50 years to retrieve your finance from rent alone,” Srinivasan points out.

Despite this, astir Indians proceed to move money into residential properties, banking solely connected value appreciation. That, he says, is simply a bet pinch fading odds. “Prices roseate spectacularly successful nan 2000s, but galore markets person since gone flat—or declined successful existent position aft inflation,” he notes.

And ostentation isn’t nan only risk. High transaction costs — including stamp duty, brokerage, and registration — eat up 6–10% of nan property’s worth upfront. Add to that existent estate’s notorious illiquidity, wherever trading a spot tin return months aliases moreover years.

Then there’s nan attraction risk. “You're locking lakhs aliases crores into a azygous asset,” Srinivasan warns. “If nan section marketplace crashes, your wealthiness crashes pinch it.”

So why do Indians support investing successful a low-yield, high-risk asset? “Cultural conditioning, taxation breaks, achromatic money parking — and a full batch of FOMO,” he explains.

Srinivasan’s proposal is blunt: if nan rent doesn’t warrant nan price, deliberation again. “Appreciation is simply a hope, not a promise.”

Published on: Jul 15, 2025 8:09 AM IST