IRR analysis

Decoding Real Estate Investment Returns: Why IRR Tells the Real Story with Gopal Gowda

AECORD's session with Shreshta Group CEO Gopal Gowda explored why IRR (Internal Rate of Return) is the most reliable financial metric for real estate projects, as it accounts for both the magnitude of returns and the critical timing of cash flows—factors that simpler metrics like ROI and MOIC fail to capture. Using a real project example with ₹11 Cr investment and ₹25 Cr projected revenue, the discussion revealed how a 45% ROI or 2.27x MOIC can mask vastly different outcomes depending on project duration, making IRR essential for investors to accurately compare and evaluate real estate opportunities.