The Per Square Foot Price Dilemma: Why Indians Struggle with Real Estate Investments
Real estate advisor Aishwarya Shri Kapoor reveals the critical mistakes Indian buyers make and offers strategic advice to turn property investments into profitable assets.
Real Estate InvestmentProperty InvestmentReal Estate RoiIndian Real EstateReal Estate StrategyReal Estate NewsJun 23, 2025
In a candid LinkedIn post, Kapoor debunked the myths surrounding property investment in India. She pointed out that poor project choices, emotional decision-making, and a lack of strategy are major reasons why everyday Indians are struggling financially. The key takeaway: most people are not investing but rather buying liabilities.
Kapoor’s list of common mistakes includes chasing the biggest discounts, visiting multiple projects in a single day, and failing to ask crucial questions about resale value, rental ROI, and exit timelines. She emphasizes that these practices lead to buying liabilities instead of investments. 'India’s biggest real estate problem = Emotional buying + zero strategy,' she states.
The top 1% of investors, on the other hand, approach real estate with a different mindset. They buy in pre-launch, negotiate terms like corporates, and exit 3-5 years later with significant returns. Kapoor’s formula for success is: Product + Timing + Zone + Brand + Exit Path = ROI. If any of these elements are missing, the investment is likely to fail.
For those looking to invest wisely, Kapoor suggests asking different questions. Instead of 'What’s available?' or 'What’s ready?' investors should ask, 'What’s underpriced with 3X resale potential?' and 'What’s the next zone to explode?' Additionally, they should focus on assets that provide value even in a market crash.
In 2025, capital is chasing specific opportunities such as SPR plots and branded resale, Dwarka Expressway mid-stage assets, SCOs with rental demand, and warehousing near UER-2. Branded assets with global resale potential, like those from DLF, are also in high demand. These segments offer better returns and lower risks compared to chasing builder discounts.
The housing market outlook is promising, with sales rising 20% on-year to 681,138 units across 60 cities. The primary market hit Rs 7.5 trillion in sales, growing 43%. Luxury and ultra-luxury housing led the momentum, with premium markets ensuring a balanced supply-demand, pushing luxury sales to 71% of the total value. Properties priced between Rs 1-2 crore saw a 52% surge in sales, with 132,532 apartments sold. The ultra-luxury segment with over Rs 2 crore experienced an even sharper rise of 73%, highlighting developers’ confidence in catering to high-net-worth buyers.
The Indian real estate sector is now valued at Rs 22.5 trillion, contributing 7.2% to the country’s economy. While metro cities continue to dominate premium housing sales, the rising prominence of tier II and III cities is reshaping market dynamics. For buyers, the key is to think like investors, focusing on undervalued assets with resale potential rather than chasing discounts and emotional buys.
Kapoor’s advice is clear: 'Your first property should make you money, not give you anxiety. And your second should free you from needing a third job.' By adopting the strategies of the top 1%, investors can navigate the real estate market more effectively and build wealth over time.
Frequently Asked Questions
What is the main reason why most Indian homebuyers fail to earn money on property investments?
The main reason is that most Indian homebuyers make emotional decisions, choose poor projects, and lack a strategic approach to their investments.
What are the key elements of a successful real estate investment according to Aishwarya Shri Kapoor?
The key elements are Product, Timing, Zone, Brand, and Exit Path. All these factors must align to ensure a high return on investment (ROI).
What is the current trend in the Indian housing market?
The housing market is seeing a 20% increase in sales, with luxury and ultra-luxury segments leading the growth. Properties priced between Rs 1-2 crore and over Rs 2 crore are experiencing significant demand.
How can investors avoid buying liabilities instead of assets in the real estate market?
Investors should focus on underpriced properties with high resale potential, ask about rental ROI and exit timelines, and avoid emotional buying. They should also consider pre-launch investments and negotiate terms like corporates.
What are some specific investment opportunities in the Indian real estate market in 2025?
Some specific opportunities include SPR plots and branded resale, Dwarka Expressway mid-stage assets, SCOs with rental demand, warehousing near UER-2, and branded assets with global resale potential like those from DLF.
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