Why 90% of Indian Real Estate Buyers Lose Money: Expert Reveals the Top 1% Strategy
Gurgaon-based real estate advisor, Aishwarya Shri Kapoor, explains why the majority of Indian real estate buyers fail to profit, while a select few succeed by following a strategic formula.
Real EstateInvestmentAishwarya Shri KapoorPropertyGurgaonReal EstateJun 23, 2025
She wrote, 'Why Indian real estate fails 90% of buyers, and what the top 1% are doing instead. Let’s be honest. Most people in India don’t build wealth through real estate. They build EMIs. They buy wrong projects, wrong timing, wrong advice. Then blame the market.'
Kapoor highlighted how many homebuyers make rushed decisions, visiting multiple projects in a single day and focusing solely on the price per square foot. This approach often leads to purchasing liabilities rather than investments. 'You bought a liability, not an investment,' she noted.
One of the primary issues Kapoor identified is the tendency for emotional buying and a lack of strategic planning. She wrote, 'India’s biggest real estate problem = Emotional buying + zero strategy. No one does price benchmarking. No one asks about rental absorption. No one checks title clarity or resale history. Everyone just says: “How much is per square foot?”'
In contrast, the top 1% of real estate investors operate methodically. They purchase during pre-launch phases, negotiate rigorously, and plan exits within 3–5 years, often achieving returns between 2.5x to 4x. Kapoor explained that this elite group follows a specific formula: 'Product + Timing + Zone + Brand + Exit Path = ROI.' The absence of any component can lead buyers into stagnation, especially in oversupplied or underdeveloped areas such as Tier 2 parts of Gurgaon.
Kapoor’s advice to prospective buyers is to start viewing real estate as a strategic investment rather than a mere consumer product. 'Think like capital. Not like a customer. Don’t ask- What’s available? Ask- What’s underpriced with 3X resale potential?' she advised.
Her final piece of advice is to change the way you think. Instead of looking for 'ready-to-move' homes, look for properties that are underpriced and have the potential to triple in value. 'Play like the top 1%. Or keep competing with people who bought brochures, not blueprints,' Kapoor concluded.
By following these strategic insights, buyers can avoid common pitfalls and increase their chances of building wealth through real estate investments.
Frequently Asked Questions
What is the main reason 90% of Indian real estate buyers lose money?
The main reason is that most buyers make emotional decisions without a strategic plan, focusing solely on the price per square foot rather than the overall investment potential.
What formula do the top 1% of real estate investors follow?
The top 1% follow the formula: 'Product + Timing + Zone + Brand + Exit Path = ROI.'
Why is price benchmarking important in real estate?
Price benchmarking helps buyers understand the true value of a property and avoid overpaying, which is crucial for making profitable investments.
What should buyers focus on instead of asking 'What’s available?'
Buyers should focus on asking 'What’s underpriced with 3X resale potential?' to identify properties with high investment potential.
What is Aishwarya Shri Kapoor's advice for prospective real estate buyers?
Kapoor advises buyers to think like capital, not like customers, and to look for underpriced properties with strong resale potential.
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