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An NRI couple bought a flat in Hyderabad in 2010 for Rs 64 lakh and sold it in 2024 for Rs 90 lakh, which seemed like a decent gain in rupee terms.
But rupee depreciation brought their annual return in USD down to just 0.5 per cent.
For a lot of NRIs, investing in property back in India seems like the ideal move—financially sound, emotionally fulfilling, and deeply connected to their roots. The reality often proves less rewarding when the actual returns are calculated.
A case in point is an NRI couple who purchased a flat in Hyderabad in 2010. What once felt like a smart decision has, in hindsight, turned into a cautionary tale. They now acknowledge that the investment drained more value through missed financial opportunities, currency fluctuations, and mental stress than it ever returned in profit.
Back in 2010, an NRI couple invested in what they thought was a smart financial move—a 3BHK apartment worth Rs 64 lakh in Hyderabad’s Nanakramguda, banking on the city’s growth. Their plan was straightforward: let the property appreciate over time while earning rental income along the way. Fast forward 15 years, and they managed to sell it for Rs 90 lakh. When they assessed the overall gains—especially after converting the returns into U.S. dollars—the outcome was underwhelming. Their experience was later shared on the subreddit rupeestories.
Check the post here:
The couple had bought the flat in the Mantri Celestia complex, paying the builder Rs 59.34 lakh over nine years through staggered EMIs. They also spent an extra Rs 5 lakh on woodwork and repairs. Due to construction delays, possession wasn’t given until 2019, and they eventually sold the property in 2024 for Rs 90 lakh.
After factoring in realtor commissions and capital gains tax, they were left with Rs 84.9 lakh. On paper, that seemed like a profit of nearly Rs 21 lakh. When adding Rs 7.2 lakh in post-tax rental income earned between 2019 and 2024, their total gain in rupee terms came to around Rs 28.9 lakh.
Once the returns were converted to US dollars, the outcome looked far less appealing. The rupee had depreciated significantly, from about Rs 45 to the dollar in 2010 to nearly Rs 85 by 2024, eroding much of their gains.
Their Rs 64.34 lakh investment was worth around $111,740 at the time of purchase, and after 15 years, including rent and sale proceeds, they ended up with just $120,000. That translated to a modest profit of only $8,500—an annualised return of just 0.5 per cent in dollar terms.
Had they invested the same amount gradually in an S&P 500 index fund like SPY, they estimated their wealth could have grown to over $330,000. Instead, they were left with just $120,000, losing out on over $210,000 (around Rs 1.8 crore) in potential gains. More than the financial shortfall, they regretted the time, stress, and effort spent managing the property from abroad—handling tenants, repairs, rent collection, taxes, and endless paperwork.
Over five years, the flat brought in Rs 12 lakh in rent, but after taxes and upkeep, only Rs 7.2 lakh remained, yielding a modest 2.25 per cent, well below the 3.5 per cent –5 per cent many experts say NRIs should aim for.
Property appreciation also fell short. Though in a much-hyped “IT corridor,” Nanakramguda didn’t evolve into the next Hitech City as expected. Selling the flat proved slow too, underscoring how hard it can be to liquidate Indian real estate when cash is urgently needed.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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