Long seen as the safest path to wealth, real estate in India has become a minefield where 90% of ordinary buyers lose money, experts warn. Behind glittering showrooms and discount offers lies a harsh truth: emotional purchases, unscrupulous developers, and a lack of financial literacy are pushing middle-class dreams into financial ruin, as the wealthiest investors thrive.
In the towering offices of Gurugram’s real estate corridors, glossy models of skyscrapers glisten under showroom lights. Sales executives promise golden futures, quoting ever-rising rental incomes and “last day offers.” For millions of Indians, property has long been synonymous with security, a brick-and-mortar assurance that their money, at the very least, is safe.
But real estate consultant Aishwarya Kapoor has a stark warning: “In India, real estate is bankrupting 90% of ordinary buyers.”
In a viral social media post, Kapoor declared that instead of building wealth, most property buyers are unknowingly buying liabilities. She stated that people think they’re investing, but in reality, they’re purchasing debt. Bad projects, emotional decisions, and flawed strategies are draining the average Indian household’s finances.
The Allure and Trap of Discounts and Dreams
Across cities like Delhi, Noida, Gurugram, Pune, and Mumbai, buyers are bombarded with offers that seem too good to ignore. “Pre-launch discounts,” “assured rentals,” “early bird deals”, these phrases have become part of the urban lexicon.
Builders exploit India’s cultural belief that property is a fail-safe investment. But behind many of these projects lie delayed timelines, legal disputes, or developers who simply vanish. The Delhi NCR region alone has seen hundreds of builders embroiled in legal battles, leaving investors stuck with half-built towers and mounting EMIs.
For many, the shock hits too late. By the time buyers discover the project is stalled or mired in litigation, most have already paid 80-95% of the cost, locking up life savings or retirement funds. Kapoor also stated that people don’t investigate land ownership records, regulatory approvals, or builder credibility. They just see the fancy sample flat and sign the cheque.
Why the Top 1% Always Win
While middle-class families lose crores, a small elite quietly makes millions. Kapoor explains that India’s top 1% of property investors act like financial institutions. They buy properties during pre-launch phases when prices are lowest, negotiate bulk discounts, and have clear exit plans.
By contrast, ordinary buyers tie up funds indefinitely in projects meant for personal use. The result is a “paper asset” that yields no income, cannot be resold easily, and drains finances through maintenance charges and loan interest. The rich look at location fundamentals, demand-supply data, and future infrastructure plans. The middle class looks at marble finishes and discounts.
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Advice for the Ordinary Investor
So, is there any hope for average Indians in real estate? Kapoor believes it’s possible, but only if buyers transform into capital-minded investors. Her recommendations include:
- Study which neighbourhoods are seeing price trends.
- Ask whether a property’s resale value could triple in 5-10 years.
- Verify legal paperwork and RERA approvals personally.
- Avoid emotional decisions based on discounts alone.
- Consider commercial property cautiously, understanding lease terms and exit strategies.
A Culture in Transition
India’s real estate dream is deeply woven into its cultural DNA. Owning a home is tied to social status, marriage prospects, and even parental pride. Yet, as more horror stories of stalled projects and lost life savings emerge, buyers are growing wary.
Still, Kapoor says, change is slow. People trust property blindly. Until we shift from emotional buying to data-driven investing, this sector will keep eating up people’s hard-earned money. As India’s skyline continues to climb, the question remains: Will the next generation of buyers finally crack the code, or fall into the same glittering trap?