My flat doubled in 10 years. Is that a good return?
"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?
How do I calculate the real return on a property?
Is real estate a better investment than mutual funds?
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.
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