The Dark Side of Real Estate: Why 90% of Buyers Lose Money
Long considered a safe path to wealth, real estate in India has become a minefield where 90% of ordinary buyers end up losing money, according to experts. Emotional purchases, unscrupulous developers, and a lack of financial literacy are pushing middle-class dreams into financial ruin.
Real EstateFinancial LiteracyProperty InvestmentReal Estate MarketBuyer AdviceReal EstateJun 27, 2025
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. 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” 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.
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?
Frequently Asked Questions
Why do 90% of real estate buyers lose money in India?
90% of real estate buyers lose money due to emotional purchases, unscrupulous developers, and a lack of financial literacy. Many buyers do not verify legal paperwork, regulatory approvals, or the credibility of developers before making a purchase.
What are some common traps in real estate that buyers should avoid?
Common traps include pre-launch discounts, assured rentals, and early bird deals. These offers often mask delayed timelines, legal disputes, or developers who vanish, leaving buyers with half-built projects and mounting EMIs.
How do the top 1% of property investors succeed in real estate?
The 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. They focus on location fundamentals, demand-supply data, and future infrastructure plans.
What are some key tips for ordinary investors in real estate?
Ordinary investors should study neighbourhood price trends, verify legal paperwork and RERA approvals, and avoid emotional decisions based on discounts. They should also consider commercial property cautiously, understanding lease terms and exit strategies.
How is India's real estate culture changing?
India’s real estate culture is slowly changing as more horror stories of stalled projects and lost life savings emerge. However, change is slow, and many people still trust property blindly. The shift from emotional buying to data-driven investing is crucial for the future of the sector.
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