December 26, 2025: For generations, owning a flat has symbolised financial security for India’s middle class, widely viewed as a long-term investment that would steadily build wealth. However, with property prices climbing, maintenance bills rising and ageing buildings facing uncertainty around resale and redevelopment, homebuyers are increasingly questioning whether apartments are true wealth creators or simply places to live.
This debate recently played out on social media, where users discussed the long-term economics of flat ownership. A Reddit post cautioned that many buyers, including NRIs, assume apartments will deliver lasting capital gains, only to confront limited resale demand decades later. “The first home is a necessity in India, but the second flat onwards is just throwing money down the drain,” the user wrote, calling on buyers to curb speculative purchases so prices can “normalise under real supply and demand.”
Others flagged construction quality and upkeep as key risks. One Redditor recalled that even an independently built home in a small town, constructed with “the best materials,” developed cracks and leaks within five years, highlighting the impact of high material costs, expensive labour and uneven workmanship. Maintenance expenses in gated communities were another concern. “That amount is also appreciating every year,” a user said, noting that sinking funds are often spent on upgrades such as EV charging and solar panels rather than long-term reserves. Factoring in taxes and upkeep, one commenter warned that “holding it for 30–40 years, you are more likely to make a loss.”
Yet others argued that location and redevelopment can preserve value. In cities like Mumbai and Pune, 30-year-old buildings are routinely redeveloped. “They get new flats at the same location with better access to offices and good rentals,” a Redditor wrote, explaining that land ownership ensures value does not fall to zero. Similar arguments were made for established neighbourhoods in Delhi and Hyderabad, where older flats have seen sharp appreciation. One user cited a Banjara Hills flat bought for ₹10 lakh in 1999 and sold recently for ₹2 crore, noting that “old areas still have captive populations.”
Many users concluded that flats offer returns mainly in a limited window. “From pre-construction to about 10–15 years, you can make money,” one wrote, adding that rental income and shorter commutes can tip the balance. Still, the prevailing view was cautious: “Flats should be seen as a consumption asset first, not a guaranteed wealth creator,” a user said, especially when buying additional homes at today’s prices.
Source: Hindustan Times
