Is property a good investment? A plain view

Rental yield

Divide the annual rent by the purchase price. In most Indian cities residential yield is 2–3.5%; commercial property can reach 6–9%. A flat bought at ₹1 crore that rents for ₹25,000 a month yields 3% — before maintenance, tax and vacancy.

Holding costs

Maintenance, property tax, insurance, repairs between tenants and the months the flat sits empty typically consume a third or more of the rent. A loan at 8.5–9% costs more than the yield, so a leveraged residential purchase is a bet on price appreciation, not on income.

Liquidity

Selling a property takes months and 6–8% in transaction costs (stamp duty for the buyer, brokerage, legal fees). Money you may need in the next few years does not belong in property.

When it works

Buying a home you will live in for a long time removes rent and the risk of relocation; that is a lifestyle decision as much as a financial one. Investment purchases work best when bought below market, in a locality with real demand drivers (offices, transport, schools), and held for a decade or more.

This is general information, not investment advice. GreatProperty does not recommend any property, locality or project as an investment.