Buying vs Renting in India: Which Builds More Wealth in 20 Years?
The ultimate 20-year showdown. We compare a ₹1 Crore home purchase vs. renting and investing the surplus in a 12% SIP. The result will surprise you.
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Quick Answer:
For a ₹1 Crore property in an Indian Tier-1 city, **Renting + Investing the surplus** typically creates **₹1.8 Crore more wealth** than buying over 20 years.
"Mini Summary: Indian Tier-1 yields are low (2-3%), making Renting + Investing superior for pure wealth building."
1. 20-Year Net Worth Projection
Total Assets at Year 20 (₹1Cr Property)
Buying (Home Value)
₹4.66 Crore
Renting (SIP Portfolio)
₹6.48 Crore
The Decision Verdict
Renting Wins on pure wealth creation in Indian metros due to low rental yields (~2.5%) vs high mortgage rates (~9%).
Buying Wins if you value stability and want to hedge against future rent inflation.
Assumptions: Property appreciation at 5%. SIP at 12%. Rental yield at 2.5%. Calculations are illustrative.
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eCalcy Editorial Team · Financial Content Specialist
Last Reviewed: August 2026
Every article published on eCalcy is reviewed against public sources such as RBI monetary policy frameworks, SEBI regulatory guidelines, and Union Budget 2025-26 provisions. Our editorial team does not accept payment for content rankings. This guide is educational only — not personalized financial, legal, or tax advice. Please consult a SEBI-registered advisor before acting.
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