Real Estate ROI Calculator

Mumbai: 2-2.5% (lowest in India due to sky-high prices). Delhi NCR: 2.5-3%. Bangalore: 3-4% (best among metros for tech hubs). Pune/Hyderabad: 3-4%. Tier-2 cities (Jaipur, Lucknow, Coimbatore): 5-7%. Commercial property: 6-9% but higher ticket size. These are gross yields — net yield after maintenance, vacancy, and tax is 30-40% lower.

Pure returns: Nifty 50 has given 12-14% CAGR over 15+ years vs property appreciation of 5-8% in most cities. However, property offers leverage (you buy ₹1Cr property with ₹20L down payment), rental income, and tax benefits on home loan. After accounting for stamp duty, maintenance, loan interest, and illiquidity, equity SIPs often outperform on a like-for-like basis. Property wins only if you get a great deal in a high-growth area.

Stamp duty: 5-7% (varies by state, Maharashtra 6%, Karnataka 5.6%). Registration: 1%. GST on under-construction: 5% (no ITC). Brokerage: 1-2%. Home loan processing: 0.5-1%. Annual maintenance: ₹3,000-15,000/month for society charges. Property tax: ₹5,000-50,000/year. Home insurance: ₹5,000-15,000/year. Interior and furnishing: ₹5-15 lakh. Total hidden cost can be 15-25% of property price.

Realistic appreciation: Tier-1 metros 4-6% per year (Mumbai, Delhi barely 3-4% in last 5 years). Growing IT hubs: 6-8% (parts of Bangalore, Hyderabad). Tier-2 growth corridors: 8-12% (but risky, builder delays, low liquidity). New infrastructure areas (metro, highway): 10-15% short-term bump. Overall, Indian real estate has underperformed Nifty in the last decade. Do not assume 15-20% appreciation — those days are gone for most markets.

A net rental yield above 3% is decent for India. Above 5% is excellent (mostly Tier-2 cities or commercial). Below 2% (most of Mumbai) means you are buying purely for appreciation. For context: FD post-tax gives 4.9%, debt funds give 5-6%, and dividend stocks give 3-6%. If your net rental yield is below 3%, you need strong appreciation (7%+) to justify the investment over financial assets.