- Yes, Hyderabad remains a strong investment choice. However, the best opportunities are often hidden and require careful discovery. In this process, you not only find a luxury unit, you will find great satisfaction. Like owning a Bentley with huge appriciation potential
Is Investing in Hyderabad Still a Better Bet?
Let’s compare Hyderabad real estate with other popular investment avenues to see how it stacks up.
The Gold Standard: Global Returns
- Global average (gold standard): 6% annual return.
- Long-term US equities (S&P 500, 10 years): ~12% CAGR.
- Currency appreciation: In 2015, $1 = ₹62; now $1 = ₹85 (a 35% INR depreciation).
CAGR example:
- $1,000 invested in S&P 500 over 10 years grows to $3,106.
- ₹62,000 invested in S&P 500 becomes ₹2,64,010 (about 15% CAGR in rupee terms).
The key question: Can Hyderabad real estate outperform these benchmarks?
Hyderabad Property Example
- Assumption: Property appreciates from ₹3 crore to ₹10 crore in 10 years.
- Financing: 20% down payment (₹60 lakh), 80% loan (₹2.4 crore) at 8% interest for 10 years.
- EMI: ₹2,91,186 per month.
Mutual Fund Comparison
**If, instead, you invest the ₹60 lakh down payment as a lump sum and the EMI amount as a monthly SIP in mutual funds at 12% CAGR for 10 years:
**
Lump sum (₹60 lakh @ 12% CAGR)
Lump sum (₹60 lakh @ 12% CAGR). -- 1,86,35,089
SIP (₹2,91,186/month @ 12% CAGR). -- 6,73,47,000
Total -- 8,59,82,089
Takeaway
- Property at 12.8% CAGR grows from ₹3 crore to ₹10 crore in 10 years.
- A disciplined mutual fund SIP at 12% CAGR can grow your investment to about ₹8.6 crore in the same period.
Bottom line:
- To outperform global benchmarks or mutual funds, Hyderabad property investment requires finding the right asset at the right price and timing.
Is it possible to find a luxury unit which is at 3cr, and have appreciation potential up to 10cr in next 10 years ?
Connect with us https://www.desiflats.com/contact-us to help you navigate through this process and discover the great asset matching your needs
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