While most Indian investors pour their money into mutual funds hoping for that coveted 12% annual return, a quieter class of wealth builders is playing a smarter, slower and far more lucrative game.
These are not celebrity investors or market-timing wizards, they’re strategic real estate players, quietly clocking 18-22% internal rates of return (IRR) by investing in the right properties at the right time.
According to Sujith SS, founder of the personal finance platform Moneydhan, these savvy investors are earning internal rates of return (IRR) as high as 18-22%, thanks to early-stage property investments and tactical asset flips. In a recent LinkedIn post that caught the attention of finance circles, Sujith revealed how India’s “emerging wealthy” are no longer satisfied with passive investing, they’re playing the real estate game like chess masters.
To explain the idea, in his detailed LinkedIn post, Sujith introduced a fictional case study, a character named Riya, as a way to simplify what many real investors are actually doing behind the scenes.
From under-construction flats to passive commercial income
It all started in Year 0, when Riya bought two under-construction flats in Gurgaon, priced at Rs 1.2 crore each. Notably, this was nearly 20% cheaper than comparable ready-to-move-in properties in the area, a classic early bird advantage.
Her payment plan was as calculated as her purchase: 10% at booking, then staggered disbursements at key construction milestones. No EMI burden. No upfront loans. Just patience and foresight.
Fast-forward to Year 2, construction progresses and with rising demand from NRIs and local brokers, the market value of each flat climbs to Rs 1.4 crore. By Year 3, as possession approaches, one of the flats touches Rs 1.75 crore. Riya sells it, bagging a cool Rs 50 lakh gain.
But she doesn’t stop there. The second flat is held and rented, fetching a 6% rental yield. This income, combined with her improved equity, helps her refinance the unit at lower rates.
The masterstroke? She channels the sale proceeds into a pre-leased commercial property on NH8, which starts delivering 8% annual returns from Day 1.
‘This isn’t random investing’
“This isn’t random investing. This is a structured wealth play,” writes Sujith, describing how seasoned investors like Riya follow a disciplined loop every 7 to 10 years:
- Buy early, often in under-construction or pre-launch projects
- Wait for value to appreciate as possession nears
- Exit with gains or hold for rental yield
- Reinvest into high-yield commercial real estate
It’s a cycle that not only compounds capital but transitions an investor from growth to passive income, without ever stepping into the volatility of the stock market.
But what about the risks?
Sujith is quick to caution against assuming this strategy is foolproof. Delays in project delivery, stagnant property prices, legal entanglements and poor-quality tenants in commercial units can all eat into returns.
Add to that the invisible costs-6-7% stamp duty, capital gains taxes, potential rental vacancies, and EMIs on unfinished units and it’s clear this isn’t for the uninformed or impatient.
Still, with due diligence and professional guidance, Sujith argues, real estate isn’t just a defensive asset anymore, it’s a dynamic wealth creation engine, especially for those willing to zig while the rest zag.