Owning a home has long been seen as the ultimate sign of financial security in India. Chartered accountant Nitin Kaushik believes that while property ownership may bring comfort, it does not necessarily translate to true wealth creation. In a detailed post on X, Kaushik compared the performance of real estate and equities over the past two decades, concluding that equities have far outshone property as an investment avenue.
“Owning a flat sounds like ‘building assets!' But is it really wealth creation?” he said, setting the tone for his critique. Kaushik went on to add that although rental returns tend to look lucrative, the math paints a different picture.
Owning a flat sounds like “building assets !
October 7, 2025
But is it really wealth creation?
Here's a breakdown of why equities have outperformed real estate in India over the last 20 years 👇🧵#stockmarketscrash #finance #realestate #investingtips pic.twitter.com/Reef5KtdHN“Average rental yield in Indian cities is 3.5-5% per year,” he pointed out, adding that a flat valued at Rs 1 crore would rake in no more than Rs 3.5 lakh to Rs 5 lakh annually as rent. Compared to an EMI of around Rs 72,000 a month, or Rs 8.6 lakh annually, the rent income does not even cover half the repayment of the loan, he said.
He also pointed out that appreciation of property in India has worked only at 5-6.5% compounded annually. “So your Rs 1 crore flat becomes around Rs 3.2 crore in 20 years,” he stated.
Factoring in the loan, “EMI for 20 years = Rs 1.73 crore, of which Rs 73 lakh is just interest. End result: you worked hard 20 years → net ~Rs 1.5 crore gain.”
In contrast, equities have yielded much better returns. “Nifty CAGR (10-year average) is 11–13%, plus dividends of 1–2%,” Kaushik said. At a compounded rate of 13%, “Rs 1 crore becomes Rs 11 crore in 20 years. That's around 3.5 times more than real estate returns.” He also pointed out that equities are liquid, while property transactions are time-consuming.
Kaushik drew attention to the “hidden costs” involved in owning property, including stamp duty, registration fees, upkeep, repairs and possible vacancy losses, all of which take a bite out of returns.
Summing up his argument, he wrote, “Property isn't always bad. It's security, it's emotional, it's tangible. But if your goal is pure wealth creation → equities win by miles. Numbers don't lie.”
Kaushik wrapped up his post saying that India's property market, which has been driven by speculation for years, could soon face challenges. He suggested that if the market correction occurs, real estate assets might not just yield lower returns but could also result in financial losses.
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