Renting versus buying in India
Stamp duty is a state tax, commonly 5% to 7% of the value, with about 1% registration on top. The 6% combined figure above is a representative national default rather than a rate anyone is actually charged; it varies by state, by city and by property type, so check your state's registration department.
Two features of the Indian rule are worth knowing before you trust any of these numbers.
Duty is charged on the higher of the price and the circle rate, the state's own minimum valuation for the locality. If you buy below the circle rate, which happens in a soft market, you still pay duty on the circle rate, so the entry cost can exceed the percentage of what you actually paid.
Several states charge women buyers one to two points less. On an ₹80 lakh purchase that is ₹80,000 to ₹1.6 lakh, and it is a straightforward, legal saving available simply by registering the property in a woman's name.
Municipal property tax is assessed on an annual rateable value rather than on the price, so the 0.15% used here is a rough equivalent rather than a rate anyone levies.
Indian home loans carry no mortgage insurance; lenders require a margin of 10% to 25% of the property value instead, which is what sets the deposit.
Finally, read the growth figures as nominal. Rent growth, appreciation and the investment return all default high, 5%, 5% and 9%, because Indian inflation is high. Both sides of the comparison are nominal, so the comparison itself holds, but 5% appreciation is not 5% of real gain.