For example, an investor may get Rs 150 back on an investment of Rs 100. If the money comes back in two years, it is a compounded annualized return of 22 per cent. However, if the same money comes back in five years (maybe because the local government took longer than expected to give the ‘occupancy certificate’), the investor’s compounded annualized return drops to a paltry 8 per cent. Investors who get an 8 per cent return from investing in real estate will justifiably feel hard done by as they might have made more money from investing in a fixed deposit than in a high-risk venture like a
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