Home Loan vs Rent — Which Is Better in 2026? (Delhi NCR Math)

"Rent is dead money" is the most common piece of bad financial advice in India. Let's run the actual math for a Delhi NCR example.

Scenario: Rahul, 32, ₹15L take-home in Delhi

Two options:

• Buy: ₹1.5 Cr flat in Noida. 20% down (₹30L), ₹1.2 Cr loan at 8.5% for 20 years.
• Rent: Same flat rents for ₹35,000/month. He invests the down-payment + EMI difference.

The math, year 1

20 years later

Assuming 6% property appreciation (CAGR) and 12% equity returns:

• Buyer: Owns a ₹4.8 Cr flat (₹1.5 Cr × 1.06^20). Owes nothing. Net worth: ₹4.8 Cr.
• Renter: ₹30L compounded 20 yrs at 12% = ₹2.9 Cr. Plus 20 × 12 × ₹69K SIP at 12% = ₹7.4 Cr. Total: ₹10.3 Cr. Minus rent paid (~₹1.4 Cr including 6% rent escalation) = ₹8.9 Cr.

So renting wins by ~₹4 Cr?

In pure financial terms, yes — but with caveats:

• Property appreciation in India is wildly location-dependent. Some Delhi NCR projects haven't moved in 10 years. Others 2×ed.
• Equity returns of 12% require discipline through crashes. Many investors flee at the worst time.
• Renting requires moving every few years — psychic cost, not just financial.
• Owning a home is psychological. The peace of "this is mine" has value.

When buying makes sense

• You'll live in the same home for 10+ years.
• The property is in a high-growth corridor (metro extension, ring road, new tech hub).
• Your rent > 4% of property value annually (rental yield > 4%).
• You'd otherwise spend, not invest, the EMI difference.

When renting makes sense

• You're early-career and likely to move cities.
• Rental yields are low (Delhi south is <2% — bad to buy).
• You have the discipline to invest the EMI difference.
• Property prices are obviously frothy.

Run your own numbers. Use the EMI calculator for the loan side, and project the rent-investment side with the SIP calculator. Want a personalised buy-vs-rent analysis with your numbers? Free with our consultation.