Is property a good investment in 2025?

For living in: yes if you plan to stay 10+ years. For investment: financial assets (equity MF) have historically given better risk-adjusted returns with more liquidity.

What's a good rental yield?

3%+ gross yield is decent in India. Commercial properties give 6-9% yield. Residential in metros averages just 2-3%. Factor in maintenance, vacancy, and property tax.

Real Estate Investment in India — Guide

Real estate is India's favorite investment, but is it really the best? Let's analyze returns, costs, and compare with financial assets.

True Returns of Real Estate

Advertised returns: 10-15% annually. Actual returns (after registration, maintenance, property tax, vacancy): 6-8% CAGR typically. Rental yield in metros: 2-3% gross, 1.5-2% net.

Hidden Costs

Registration: 6-8% of property value. Maintenance: ₹3-5/sqft/month. Property tax: 0.5-1%/year. Home loan interest doubles the cost. Vacancy periods. Broker fees (1-2 months rent).

Alternatives: REITs & Fractional

REITs: Invest in commercial real estate from ₹300-500. Get 6-8% dividend + capital appreciation. Listed and liquid. Fractional ownership: Invest ₹10-25L in Grade A commercial property through platforms.