Last Updated:June 16, 2025, 17:28 IST
Architect Atul Gupta said once a flat is purchased, the owner is tied to one place and may face difficulty selling it quickly in case of transfer, relocation, or family emergency
Buying a flat worth crores often leads people to spend their entire lives repaying loans. (Local18)
In recent years, the culture of purchasing flats has been on the rise across India, including in the Delhi NCR region. Homebuyers are increasingly opting for one, two, and even three-bedroom flats from prominent builders, with many now seeking four-bedroom units. This growing demand has led developers to focus more on constructing larger flats. People are investing millions in these flats, but concerns remain about whether the returns justify the cost.
Atul Gupta, a renowned architect who has held various positions including with the Architect Association of Uttar Pradesh since 1995, weighs in on the matter. He discusses whether it’s more beneficial to buy land, a flat, or to live in a rented house. According to Gupta, buying a flat might not be as advantageous as it seems.
Buying A Flat: Weighing The Pros And Cons
Architect Atul Gupta highlighted that good and spacious flats are now selling for crores of rupees, making the trend of purchasing flats financially risky. According to him, people are shooting themselves in the foot and incurring losses. Not only that, they are also burdening future generations with debt. If someone buys a flat worth one or two crores, they end up paying EMIs for 10 to 15 years. To do this, they take loans which may eventually rise to Rs 1.35 or Rs 1.40 crore due to interest. This means monthly EMIs of up to Rs 2.5 lakh. And since a flat’s lifespan is around 15 years, its value and utility also keep declining over time.
The most important point is that the structural lifespan of any construction—that is, its structural durability—ranges from 20 to 40 years. After that, various maintenance issues begin to surface, including ceiling problems.
Even in the case of large and premium apartments, once the lifespan ends, the foundation also starts weakening. After 40 years, there is no clear provision in our laws regarding what will happen to such apartments—whether they will be rebuilt or not. In such a situation, buying a flat often turns out to be a loss-making deal.
Disadvantages Of Buying A Flat
Architect Atul Gupta said that once a flat is purchased, the buyer becomes tied to one location. In case of a desire to relocate to another country, a job transfer to a different state, or a family emergency such as medical treatment or a wedding, selling the flat quickly may not be possible.
In such situations, the person may have to live in a rented place while continuing to pay the flat’s EMI. If the flat cannot be sold urgently, an additional loan may be required. One loan is already being paid for the flat, and another loan may be needed to cover rent and emergency expenses. This leads to financial loss.
Advantages Of Living In A Rented House
Architect Atul Gupta highlighted several advantages of living in a rented house. It allows greater mobility—relocation becomes easier in case of job transfers. There is no burden of paying house tax, and major maintenance work is typically handled by the landlord. Renting eliminates the need for taking out loans or paying EMIs, which helps in better budget management and savings.
The saved money can contribute to an improved lifestyle and financial stability. Additionally, there is no long-term financial strain or debt passed on to future generations.
In contrast, buying a flat worth crores often leads people to spend their entire lives repaying loans. In many cases, all savings and investments go into the flat, and when a project fails or complications arise, it creates serious financial stress for the buyer.
Buying A Plot Is A Better Investment
Architect Atul Gupta explained that purchasing a plot is often a profitable decision, as the land remains a permanent asset. It offers flexibility—structures can be built or modified multiple times as needed, while ownership of the land stays intact. The value of land generally appreciates, especially when there is rapid development in the surrounding area. This leads to long-term gains. Therefore, renting a house or investing in a plot to construct a personal home is considered a more beneficial and secure option.
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