Property vs stocks: This ₹1 lakh experiment from 2005 ends in a ₹14 lakh shock

Think your property investment from 2005 made you rich? The numbers tell a surprising story—and they may just flip everything you believe about wealth creation in India.

Over the past 20 years, equities have quietly outpaced real estate, delivering significantly higher returns with fewer strings attached. While real estate has long been considered the gold standard of Indian wealth, fresh data shows that stock market investments—particularly in the Nifty 50—have pulled ahead, and by a wide margin.

A ₹1 lakh investment in the Nifty 50 index in 2005 would be worth around ₹15 lakh by 2025, translating to a 15x return and a compound annual growth rate (CAGR) of ~14.9%. By contrast, residential real estate returned just 5.2x on average (~8.4% CAGR), while commercial property did slightly better at 6.1x (~9.3% CAGR). Even REITs, launched only in 2019, delivered a respectable 11–13% annual return.

The analysis, conducted by The Fynprint, combines historical index data, RBI and NHB RESIDEX price trends, and listed REIT performance to draw a 20-year comparison of India’s top investment avenues.

Beyond returns, equities win on liquidity, low transaction costs, and zero maintenance. Real estate, meanwhile, comes with hidden expenses—stamp duty, brokerage, property tax, maintenance, and vacancy periods—that eat into returns. For a ₹1 crore property, these can quietly add up to ₹7–12 lakh over time.

Rental yields, often seen as a steady income stream, have averaged just 2.5–4.5% in major cities, and even lower after costs. With regulatory headwinds and cooling price appreciation post-2016, real estate’s luster has dimmed.

As India’s retail investors embrace mutual funds, ETFs, and REITs, the data shows that the old real estate vs. equities debate may already have a winner.