COMMON REAL ESTATE MYTHS THAT BUYERS MUST STOP BELIEVING
Real estate continues to remain one of the most preferred investment choices for Indian families, often seen as long-term security for future generations. However, changing market dynamics over the past decade have made it necessary for homebuyers and investors to approach property purchases with greater awareness and strategy. Several outdated beliefs still influence buying decisions, leading to financial setbacks. Here are some of the most common myths — and the realities behind them.
MYTH 1: PROPERTY PRICES ALWAYS APPRECIATE
The assumption that real estate prices never decline is misleading. While demand keeps the market largely stable, prices can drop in locations with oversupply or area-specific challenges. Builders offering heavy incentives such as free parking, stamp duty waivers, modular kitchens or holiday packages often indicate a masked price correction.
Reality:
Home prices fluctuate based on macro and micro market forces, similar to stocks, bonds or gold.
MYTH 2: REAL ESTATE IS IMMUNE TO ECONOMIC DOWNTURNS
Economic conditions such as rising interest rates, policy changes, global financial pressures or excess housing supply can significantly impact property values. Although many consider real estate a “safer” alternative during stock market volatility, the sector carries its own set of risks — project delays, legal disputes, liquidity challenges and lower resale value due to poor location.
Reality:
Stocks offer flexibility for course correction, but a property cannot be altered once purchased, and inflation may reduce long-term real returns.
MYTH 3: LANDLORDS EARN EASY MONEY
Contrary to popular belief, real estate is no longer a passive investment. Rental property owners must manage tenant screening, agreements, repairs and ongoing maintenance. For under-construction homes, buyers must constantly monitor project progress. In most industries, product risk lies with the manufacturer, but in real estate, homebuyers often carry the risks of delays or defects.
Reality:
Owning property is a valued aspiration for Indians, but it requires active involvement and is far from a “earn while you sleep” model.
MYTH 4: REAL ESTATE REQUIRES LARGE CAPITAL
Traditional home buying involves substantial down payments and EMIs, but several cost-effective options exist. Bank-auctioned properties often come at discounted prices. Land purchases in emerging markets remain affordable. Smaller cities and industrial towns offer reasonably priced opportunities. Additionally, REITs now allow investors to participate in professionally managed real estate portfolios with investments as low as ₹10,000–₹15,000.
Reality:
While conventional homebuying is expensive, specific market segments and modern investment platforms offer accessible entry points.
MYTH 5: LOCATION IS THE ONLY THING THAT MATTERS
Location plays a major role, but it is not the sole factor determining property value. Unfavourable infrastructure development, demographic shifts, local economic slowdown or supply-demand imbalance can negatively impact future returns. In many cases, suburban regions and smaller cities have shown stronger appreciation than saturated, fully developed areas.
Reality:
Location should be evaluated along with project quality, developer reputation and broader market trends.
