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What is XIRR in real estate investments?

XIRR (Extended Internal Rate of Return) is a financial metric used to calculate the annualized return on real estate investments with irregular cash flows and varying transaction dates.

How XIRR Is Used in Real Estate

  • Measures returns from staggered investments and payouts
  • Includes rental income and property sale proceeds
  • Accounts for varying investment timelines
  • Common in real estate funds and SIP-style investing

Why Investors Use XIRR

  • Provides more accurate return calculations
  • Helps compare different investment opportunities
  • Reflects actual investment performance over time
  • Useful for long-term property portfolio analysis

XIRR is widely used in real estate investing because it offers a realistic measure of returns when cash flows occur at different intervals.

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