Strategic Investments in Under-Construction Flats: Can ₹20 Lakh Turn into ₹1 Crore?
A fintech influencer highlights that strategic investments in under-construction flats in Hyderabad can yield substantial returns, turning an initial investment of ₹20 lakh into ₹1 crore within a few years.
Real EstateInvestmentUnderconstruction FlatsHyderabadProperty AppreciationReal Estate NewsMay 18, 2025
Real Estate News:A fintech influencer has said that investing ₹20 lakh in an under-construction flat in Hyderabad a few years ago could have yielded a profit of ₹1 crore today. In a LinkedIn post, Sharan Hegde highlighted that while real estate is often seen as slow money, requiring significant capital and taking decades to appreciate, savvy investors know how to maximise returns through strategic timing and leverage. Hegde explained that experienced investors enter projects early when prices are at their lowest and use construction-linked loans to reduce initial cash outflow. This approach allows them to benefit from the appreciation curve without tying up excessive capital. “If you play it like the pros, it’s high-leverage, high-upside, timed risk,” he noted. Last week, Hegde flew to Hyderabad to meet a developer who is building over 10,000 homes and has scaled to ₹6,000 crore in sales. He wanted to learn what real estate investors really do to make 2X, 3X, even 5X returns — and how everyday folks can do it too. Hegde said that the common belief is that property takes decades to appreciate and requires huge capital upfront. Seasoned investors use timing and leverage to their advantage, entering projects early when prices are lowest, and using construction-linked loans to minimise initial outflow. This allows them to participate in the appreciation curve without locking up too much capital, he explained. Timing Beats Location Hegde said buying during the excavation stage — when the builder has just started digging — often gives the highest upside in real estate. At this early phase, prices are at their lowest, and investors who enter at this point stand to gain the most as the project progresses. “In one project I recently saw in Hyderabad, flats that were priced at ₹1.2 crore during the early stage appreciated to ₹2.2 crore by the time construction was completed and the property was ready to move in. That’s a ₹1 crore gain in just four years — simply by getting in early and riding the appreciation cycle,” he wrote. Stop Chasing Finished Flats Hegde said ready-to-move-in might often mean ‘ready-to-trap-yourself.’ “Your capital gets locked in, and the returns are typically modest. With rental yields hovering around just 2–3%, the cash flow does not justify the high entry cost,” he wrote. The Risk Lies Not in the Property, but in the Builder Approximately 30% of under-construction properties in India continue to face delays, resulting in stalled investments and financial strain for buyers. Fintech influencer Sharan Hegde emphasises that conducting thorough due diligence on the builder is essential before making any investment. “Start by studying their past projects—have they completed similar developments successfully? Look for scale continuity: are they consistently growing and delivering, or are they jumping between one-off projects? And most importantly, understand how they fund their construction—a builder with a clear financing cycle is far more likely to complete the project as promised,” he wrote.
Frequently Asked Questions
What is the main advantage of investing in under-construction flats? A: The main advantage is the potential for high returns due to the appreciation of property value over time, especially if the investment is made at the early stages of construction. Q: How can investors reduce their initial capital outlay when investing in under-construction properties? A: Investors can use construction-linked loans to reduce their initial cash outflow, allowing them to benefit from the property's appreciation without tying up too much capital upfront. Q: Why is it important to conduct due diligence on the builder before investing in under-construction flats? A: Conducting due diligence on the builder helps ensure that the project will be completed on time and to the promised quality, reducing the risk of delays and financial strain for the investor. Q: What is the typical return on investment for under-construction flats in Hyderabad? A: According to the fintech influencer Sharan Hegde, under-construction flats in Hyderabad can yield returns of 2X, 3X, or even 5X, depending on the timing and leverage used by the investor. Q: What are the risks associated with investing in ready-to-move-in flats? A: Investing in ready-to-move-in flats can result in capital being locked in with modest returns, as rental yields are typically low, and the initial entry cost is high.
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