The Great Indian Property Leap: How Savvy Investors Are Compounding Wealth Faster Than Ever

India's new wealthy are redefining the wealth playbook with a preference for real estate as a high-performing asset class that's quietly beating old favorites such as mutual funds. Sujith SS, Moneydhan's founder, recently outlined the trend, offering a strong case study that's making headlines across the country.

 

Key Points

Early-Stage Advantage: Buyers are buying projects in the under-construction phase at launch prices, typically 20% less than completed properties. For example, "Riya" booked two apartments in Gurgaon for ₹1.2 crore each when comparable completed apartments were on offer for ₹1.5 crore.

 

Smart Payment Plans: Staggered payments (10% initial, 30% at each milestone) keep customers away from premature EMIs and loans, reducing risk and enhancing flexibility.

 

Quick Value Appreciation: With development ongoing and demand increasing—particularly from NRIs and brokers—property values appreciate. Riya's apartments appreciated to ₹1.4 crore per unit by the second year.

 

Strategic Reinvestment and Exit: Close to possession, Riya sold one unit for ₹1.75 crore, making a profit of ₹50 lakh. The second unit was let out on a 6% return and re-financed on beneficial terms.

 

Compounding Returns: The sale proceeds were invested in a pre-leased office complex that yielded 8% annually, thus generating a compounding wealth cycle.

 

Increased IRR: Risk-averseinvestors are getting IRRs of 18–22%, which are significantly better than the 12% CAGR of mutual funds.

 

Risks Linger: Sujith cautions about potential risks—delays, litigation, stamp duty, capital gains tax, and rental vacancies can consume returns. Due diligence and a disciplined long-term investment strategy are required.

 

Why It Matters

 

This is not wild speculation—it's a methodical, replicable wealth plan. India's new wealthy are employing early entry, patient holding, and clever reinvestment to build wealth quietly, often outperforming aggressive equity strategies over a 7–10 year cycle. Real estate's leverage, passive income, and long-term appreciation make it a cornerstone of modern wealth creation.

 

"These are not gambles, this is a systematic wealth creation plan… Invest early, let value unlock, sell or convert to rent, and reinvest in higher yielding assets." — Sujith SS, Moneydhan 

 

Source: Economic Times, MyPunePulse, Business Today, Entrepreneur