How to Calculate CAGR of a Property's Value Over Time
CAGR smooths a multi-year price change into a single annualised growth figure, which is essential for comparing a property's appreciation against equities, gold or fixed deposits on a like-for-like basis.
CAGR formula
1
Typical NCR residential CAGR band
6–9%
Historic land CAGR in growth corridors
12–18%
Any holding period comparable
n years
What the data says
CAGR = [(Ending value ÷ Beginning value)^(1/n) − 1] × 100, where n is the number of years held.
Worked example: a flat bought for ₹1.2 Cr in 2019 and worth ₹1.85 Cr in 2025 (n = 6 years). CAGR = [(1.85 ÷ 1.2)^(1/6) − 1] × 100 ≈ 7.5% per annum.
CAGR ignores intermediate volatility and any rental income — it measures capital appreciation only, so it must be paired with net yield for a full return picture.
Model your own purchase and current-value figures instantly at /knowledge/calculators/cagr.
How EstateVeda executes this
Confirm the registered purchase price and a defensible current market value (recent comparable registry trades, not asking prices).
Compute the exact holding period in years including part-years where relevant.
Apply the CAGR formula and cross-check the result against corridor-level historical CAGR data.
Combine with net rental yield to arrive at total annualised return.
Risks we underwrite against
Using an inflated current valuation (broker opinion rather than registry comparables) overstates CAGR.
CAGR over short holding periods (under 3 years) can be highly noisy and unrepresentative of the true trend.
EstateVeda verdict
CAGR is the correct tool to compare property appreciation against other asset classes, but always pair it with net yield since CAGR alone excludes rental income.
Frequently asked questions
What is a good CAGR for property in India?
NCR residential has historically delivered 6–9% CAGR in stable corridors, while licensed plotted land in growth corridors such as Sohna has shown 12–18% CAGR over favourable cycles.
Does CAGR include rental income?
No — CAGR captures only the change in capital value. Total return should combine CAGR with net rental yield earned during the hold.
How is CAGR different from simple average annual return?
Simple averaging overstates returns when growth is uneven, because it ignores compounding. CAGR correctly compounds the growth rate across the holding period.