For many Indians, owning a house is seen as the ultimate sign of success. Families save for years to buy property, believing it is the best way to build wealth. But according to Rajeev Agarwal, this belief may not always hold true.

“Does buying a house really make you rich in India?” he asks in a LinkedIn post, adding that while property offers security, it may not be the fastest route to financial growth.

THE REAL ESTATE STORY

Agarwal pointed out that a Mumbai property bought for Rs 50 lakh back in 2003 could be valued at nearly Rs 3–3.5 crore today. A six to seven times growth in two decades sounds good, but not extraordinary, he explained.

“Real estate in Indian cities has historically grown at 10–12% a year before taxes and costs,” Agarwal said. “After stamp duty, property tax, maintenance charges, brokerage, and the fact that you cannot easily sell it, the actual return often falls to just 6–7%.”

THE STOCK MARKET COMPARISON

Now compare this with the Nifty 50 index. If the same Rs 50 lakh had been invested in 2003, it would have grown to around Rs 10–11 crore by 2025. That’s nearly a twenty-fold rise, three times more than property.

“Nifty 50 has delivered a compound annual growth rate of about 15.5% over the past two decades,” says Agarwal. “There are no maintenance costs, it is liquid, and expenses are far lower than in real estate.”

WHAT MOST PEOPLE MISS

The key difference, according to Agarwal, lies in understanding what each asset gives you.

“A house gives you stability, comfort, and emotional satisfaction,” he says. “But if your goal is to become truly wealthy, the stock market has quietly been the bigger winner for the past 22 years.”

THE TAKEAWAY

For Indians, the emotional pull of owning a home will always remain strong. But the numbers show a clear gap between financial returns from real estate and equities.

As Agarwal sums it up: “The earlier we separate emotional satisfaction from financial growth, the smarter our money decisions become.”

– Ends