• GSR Financial Services

Home Loan vs. Renting in Hyderabad: Which Saves More Money?

The Rising Cost of Hyderabad Real Estate

Hyderabad’s property prices grew 12% in 2023, with average home loans at ₹35 lakh for a 2BHK. Meanwhile, rents for similar properties range ₹15,000–25,000/month in areas like Gachibowli and Kondapur. But does buying always beat renting? Let’s break down the math over 10 years.

Upfront and Recurring Costs

Buying requires a 20% down payment (₹7 lakh for ₹35 lakh property), registration fees (6%), and EMI (₹30,000/month at 8.5% interest). Renting needs just deposit (₹2–3 lakh) and monthly rent. However, rent increases 5–7% yearly, while EMI remains fixed. After 10 years, you’d pay ₹36 lakh in rent with no asset ownership.

Tax Benefits & Appreciation

Home loan borrowers save ₹1.5 lakh/year under Section 80C (principal) and 24(b) (interest). Hyderabad properties appreciate ~8% annually—a ₹35 lakh home could be worth ₹75 lakh in a decade. Renters miss this wealth-building opportunity but gain flexibility to relocate for jobs/schools.

When Renting Makes Sense

Choose renting if: your job requires frequent transfers, you lack stable income for EMIs, or prefer investing savings elsewhere (e.g., stocks yielding 12%+). Short-term stays ( Less Than 5 years ) often favor renting due to high buying transaction costs.

The Break-Even Point

Our analysis shows buying becomes profitable after 6–7 years in Hyderabad. Use this formula: (Total buying costs – sale value) vs. (Total rent paid + investment returns). Consult our advisors for a personalized rent-vs-buy calculator!