Project future property value
Default scenario: ₹1 Cr property at 7% CAGR for 10 years.
Compound appreciation formula
Future value at a compound growth rate: FV = PV × (1 + CAGR)n. Where PV is the current price, CAGR is the annual growth rate, and n is the number of years held.
CAGR compounds, so small differences in annual rate compound into large differences in final value. A property growing at 7% doubles in about 10 years (Rule of 72: 72 ÷ 7 = 10.3); at 10% it doubles in 7.2 years; at 4% in 18 years.
Indian residential CAGR historical ranges: metro tier-1 averages about 5–9% over 10-year windows, with significant variance by micro-market. Outer tier-2 / greenfield areas can see 12–18% in their “adoption” phase but then flatten. Don’t extrapolate the last 3 years — smooth over a full cycle.
FV of a ₹1 crore property at different CAGRs
| CAGR | 5 yrs | 10 yrs | 15 yrs | 20 yrs |
|---|---|---|---|---|
| 5% | ₹1.28 Cr | ₹1.63 Cr | ₹2.08 Cr | ₹2.65 Cr |
| 7% | ₹1.40 Cr | ₹1.97 Cr | ₹2.76 Cr | ₹3.87 Cr |
| 10% | ₹1.61 Cr | ₹2.59 Cr | ₹4.18 Cr | ₹6.73 Cr |
| 12% | ₹1.76 Cr | ₹3.11 Cr | ₹5.47 Cr | ₹9.65 Cr |
Frequently asked
What is a realistic property appreciation rate for Indian real estate?
Historical 10-year CAGR for residential property in top Indian metros ranges 5–9% depending on city and micro-market. Bangalore IT corridors and Hyderabad Gachibowli/Kokapet have touched 10–12% during growth phases; legacy metros like Mumbai have underperformed at 3–6% over the same period. Use 6–7% as a base-case assumption for modelling.
Does this calculator account for inflation?
No — it projects nominal (face-value) prices. Indian CPI inflation averages 5–6%. If your CAGR assumption is 7% and inflation is 6%, real (inflation-adjusted) return is about 1%. Always compare property returns to equity, debt, and gold on a real-return basis.
How do I choose the right CAGR assumption?
Look at 10-year historical data for the specific micro-market, not the city average. Locality-level historical data is available on sites like ANAROCK, JLL research reports, or RBI’s all-India House Price Index. Our locality hubs include multi-year price benchmarks where available. Use the lower of (last 10 years CAGR, last 5 years CAGR) as conservative base case.
What causes property values to stop appreciating?
Oversupply, loss of job-creation in the micro-market, new infrastructure that opens up cheaper alternatives, regulatory changes (e.g. RERA tightening, circle-rate hikes), and cyclical price corrections every 7–10 years. Bangalore 2016–2019 saw flat prices; Mumbai 2018–2022 corrected 10–15% in peripheral areas.
Should I include transaction costs in ROI?
Yes, for honest ROI. Budget: 6–11% stamp duty + registration on entry, 2% broker fee on exit, 20% LTCG tax on gain if sold before buying another property, plus holding costs (property tax, maintenance). Gross appreciation of 7% often becomes 4–5% net of frictions over typical 10-year holds.