Think your Rs 2 crore Gurgaon flat became Rs 4 crore? CA says you probably earned far less and explains the math

A property that doubles in value sounds like the ultimate investment success story. Many homeowners proudly celebrate buying a home for Rs 2 crore and selling it for Rs 4 crore, assuming they have doubled their wealth. But according to Chartered Accountant Nitin Kaushik, the numbers are often far less impressive once all the hidden costs are taken into account. In a recent social media post, he explained why headline property prices can paint a misleading picture of actual returns.

CA Nitin Kaushik took to X to challenge what he believes is one of the biggest misconceptions surrounding real estate investing. "Stop bragging about your Gurgaon flat doubling in value because your actual money absolutely did not double," he wrote, arguing that most people focus only on the purchase and selling price while ignoring the many expenses that eat into their gains.

To illustrate his point, Kaushik shared the example of a property purchased for Rs 2 crore and sold six years later for Rs 4 crore. At first glance, the transaction appears to have generated a profit of Rs 2 crore. However, Kaushik said the real calculation is far more complicated.

CA breaks down the math

According to him, costs such as stamp duty, substantial home loan interest, maintenance expenses, brokerage paid during both purchase and sale, and capital gains tax significantly reduce the final amount an owner actually keeps.


After accounting for these expenses, he claimed the actual net profit would be only around Rs 1.06 crore. Kaushik added that this dramatically changes the investment's performance. Instead of delivering the spectacular returns many people assume, he estimated that the real compound annual growth rate works out to roughly 7.3 per cent.
He argued that this is far less remarkable than the headline numbers suggest.

In his post, Kaushik explained that real estate often "looks incredible on paper" because buyers and sellers typically compare only the buying and selling prices. According to him, they overlook the "massive transactional friction" that quietly erodes returns throughout the investment period.


He suggested that once these costs are properly factored in, what appears to be an extraordinary investment can end up delivering returns that are comparable to much safer investment options.

Kaushik's post serves as a reminder that evaluating any investment requires looking beyond the headline profit. For property buyers, calculating financing costs, taxes, maintenance charges and transaction fees can provide a much more accurate picture of what an investment has truly earned over time.