Renting is often better when: property prices are more than 20× annual rent, you plan to relocate within 5-7 years, or you can earn higher returns investing the down payment in equity markets.

Divide the property price by annual rent. If the ratio is above 20, renting is usually more economical. In many Indian cities, this ratio is 25-30, making renting the financially smarter choice.

Historically in India, residential real estate has returned 6-8% annually, while equity mutual funds have returned 12-14%. However, real estate offers forced savings (EMI discipline) and emotional security, which have non-financial value.