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# My flat doubled in 10 years. Is that a good return?
- URL: https://bayfol.io/property-doubled-real-return/
- Published: 2026-11-09T03:30:00.000Z
- Updated: 2026-11-12T15:28:13.000Z
- Description: Doubling in 10 years is about 7.2% a year, before costs. How to work out the real return on a property.
- Author: BayFolio LLP
- Tags: Asset Allocation, #video

"My flat doubled in 10 years!" It is a proud line at every family gathering. It also oversells the deal.

## Annualise it first

Doubling sounds huge. Now turn it into a yearly rate:

| Doubled in | Growth per year |
| ---------- | --------------- |
| 10 years   | about 7.2%      |
| 15 years   | about 4.7%      |

That is ordinary. And it is **before** you subtract what the property cost you to own.

## A real return counts every rupee

**Money out:** \- the price, stamp duty and registration - brokerage - every year of loan interest - maintenance and society dues - property tax - the months it sat empty

**Money in:** \- the rent you actually received, minus the empty months - the sale price, after brokerage and any tax

Leave any of these out, and the "return" is a story, not a number.

## Measure it with XIRR

Use the same method that measures your SIP. List every cash flow with its date. Then compute the **XIRR** (the yearly return across uneven cash flows). A spreadsheet does it in one line.

That single percentage is the fair number. Compare it with a fund, an FD, or the return your goal needs.

## The honest part

Do this, and many celebrated property "wins" settle in the high single digits after costs. That is often below a diversified equity portfolio over the same years.

Sometimes a well-bought property genuinely shines. The point is not "never buy a house". The point is: **measure it, don't assume it.**

## Questions people ask

#### If my property doubled in 10 years, what was the annual return?

About 7.2% a year, before costs. If it took 15 years to double, about 4.7% a year. The rule of 72 gives a quick check: 72 divided by the years to double.

#### How do I calculate the real return on a property?

List every cash flow with its date: price, stamp duty, registration, brokerage, loan interest, maintenance, property tax, rent received and the net sale price. Then use the XIRR function in a spreadsheet.

#### Is real estate a better investment than mutual funds?

Not always. After all costs, many properties return in the high single digits a year. Compare the property's XIRR with what a diversified portfolio earned over the same years.

## Doubling isn't great. Annualise it.

Turn the family story into one honest number before you compare it with anything else.

Annual growth from doubling: 2^(1/10) − 1 = 7.18% (10 years); 2^(1/15) − 1 = 4.73% (15 years). Pure arithmetic, before any costs or tax. General information only.

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully. Past performance does not guarantee future returns. BayFolio LLP · AMFI-registered Mutual Fund Distributor · ARN-363035.