People quote things like these (you got 40% price increase). However, mathematically it is not that easy unless you paid cash because once you add up EMI, etc. the price increase would be much less. Additionally, if you don't have insurance then it represents a degree of risk as well. What if there is an earthquake and the building collapse. If you have a flat then there is no land that you really own. Now, compare that to stock returns from Sensex and see how you did. Also, house is a huge investment compared to what you have to spend in stocks. In fact, when I was paying for my home, I hated the fact that I cannot buy stocks for many years due to my financial obligations for paying my house. House rent also increases your total income that you have to pay taxes on. Anyway, it is a mathematical problem and most people will quote percentage price increase to make a case. Guys like me don't care for such things. I want mathematical proof. Mathematically, I am fully convinced with what I said. However, I don't mind Real Estate Investment Trusts (REITs) as they help me diversify. I own real estate that way. House, to me, is not a great investment. It is an OK investment.
Also, home price is just a perception. Stock price is real. Just because someone thinks that you can sell a home for certain price does not mean that you will get that price. You have to wait for months and then there are many other fees that you have to pay. Sometimes you will get petty buyers who would ask for lower price. None of that really happens in selling and buying stocks. In some cases, you may finalize a deal only to realize that a buyer is unable to secure a loan. Also, home prices are sensitive to interest rates. If RBI increases interest rates then home loan PMI will go up and demand will go down requiring home price adjustment.
On risk-return frontier, home as an asset is not really an efficient investment. It is good as a diversification strategy, but not really that great as an investment. If homes in India were really a great investment then I would be either running towards India to buy a home or regretting a lost opportunity. In reality, I have been consistently deterring people from this investment opportunity (based on risk return scenario, opportunity costs and working capital availability for years).