For many NRIs, buying property in India feels like a natural step—financially prudent, emotionally satisfying, and culturally rooted. But when the numbers are finally crunched, the results can often be sobering. One NRI couple’s experience with a Hyderabad flat they bought in 2010 offers a clear example of how real estate investments, especially from abroad, can underdeliver over time. Despite making what looked like a smart move back then, the couple now admits it cost them far more in missed opportunities, currency losses, and peace of mind.

In 2010, an NRI couple made what they believed was a sound investment—a Rs 64 lakh 3BHK apartment in Hyderabad’s Nanakramguda area. The idea was simple: put money into a growing city, wait for appreciation, and enjoy some rental income. Fifteen years later, the property was sold for Rs 90 lakh. But when they looked at the bigger picture, especially in U.S. dollar terms, they were left with a disappointing return. The story was shared on the subreddit, rupeestories, and has since resonated with many NRIs who faced similar realities.

A Seemingly Profitable Exit on Paper

The couple had purchased the flat in the Mantri Celestia complex and paid the builder Rs 59.34 lakh over nine years through staggered EMIs. An additional Rs 5 lakh was spent on woodwork and repairs. Possession was delayed until 2019, and they finally sold the apartment in 2024 for Rs 90 lakh. After deducting realtor fees and capital gains tax, they were left with Rs 84.9 lakh in hand. On paper, that appeared to be a profit of nearly Rs 21 lakh. Add to this Rs 7.2 lakh in post-tax net rental income from 2019–2024, and the overall gain stood at about Rs 28.9 lakh in INR. To many, this might seem like a decent outcome—until the currency math enters the conversation.

The Dollar Math Tells a Different Story

When converted to dollars, however, the picture turned grim. Due to rupee depreciation—from around Rs 45/$ in 2010 to roughly Rs 85/$ in 2024—their total returns shrank dramatically. Their original Rs 64.34 lakh investment was around $111,740 in dollar terms. After 15 years, they walked away with only about $120,000 (including rent and sale proceeds), making the actual profit roughly $8,500. That’s a 0.5% annualised return in USD.

Had the same amount been invested steadily in an S&P 500 index fund like SPY over the same period, the couple calculated they could have accumulated over $330,000. Instead, they ended up with just $120,000—an opportunity cost of over $210,000 (approx. Rs 1.8 crore). The regret wasn’t just about the missed money, but also the lost time and mental energy that went into maintaining the flat, dealing with tenants, chasing rent, handling repairs, and navigating taxes and paperwork from abroad. The emotional toll was an added burden they hadn’t anticipated.

Low Rental Yield and Liquidity Challenges

Over five years, the flat earned Rs 12 lakh in rent, which after taxes and maintenance, dropped to Rs 7.2 lakh. That translated to a gross rental yield of around 2.25%, far below the 3.5%–5% net yield many experts believe NRIs should target to make real estate in India worthwhile.

On top of that, the flat did not appreciate as expected. Despite being located in a much-hyped "IT corridor," Nanakramguda didn’t develop into the next Hitech City as projected. Liquidity too was an issue—the flat didn’t sell quickly, highlighting the difficulty in offloading Indian real estate when you truly need funds. Delays in legal paperwork and reliance on local agents added to the complexity.

Key Takeaways from a Costly Lesson

Reflecting on the entire experience, the NRI investor laid out some hard-earned lessons:

• Currency risk significantly impacts NRI investments. A decent return in INR may translate to poor growth in USD.

• Opportunity cost is often overlooked. U.S. index funds can quietly outperform Indian real estate in the long run.

• Liquidity and yield are more important than speculative capital gains.

• Buying based on hype rather than fundamentals can lead to underwhelming outcomes.

• Detailed, USD-adjusted math should always be run before buying property in India.

Gurgaon Manager's Warning

This story isn’t unique. A Gurgaon-based manager recently shared a similar experience on social media. Someone he knew had bought a 3BHK apartment in a Tier II city for Rs 70 lakh in 2022. Two years later, they managed to sell it for just Rs 75 lakh. Once taxes and transaction costs were considered, the net gain was almost negligible.

In fact, as the manager pointed out, a simple fixed deposit in a bank over the same period would have offered better returns—without the stress of property upkeep, paperwork, or market uncertainty. The illusion of real estate being a “safe” asset often hides its lower liquidity and real costs.

The Hyderabad flat story is one of many emerging from NRIs and domestic investors alike. These accounts reinforce a common theme: Indian real estate, while emotionally appealing and once seen as a “safe” investment, doesn't always deliver strong returns—especially after adjusting for currency risk, taxes, and missed alternative gains.

Whether in Tier I metros or smaller towns, real estate investments need sharper scrutiny today. As the NRI investor candidly put it: this isn’t about being anti-property—it's about being pro-math.