Gold and real estate have long been trusted investment choices in India. While gold is known for being liquid and a hedge against inflation, real estate is often seen as a long-term asset with the promise of wealth creation and physical ownership. But when it comes to actual returns over the last 10 to 15 years, the numbers tell a different story.
Many real estate experts continue to highlight the potential of the sector. Surender Kaushik, Founder and MD of ARIPL, says that although gold may perform well in volatile markets, real estate is the real wealth builder. He points out that luxury housing is becoming more dominant, making up over 50% of residential sales in recent quarters.
Kaushik also mentions corridors like Delhi’s Dwarka Expressway, where property prices have increased five times in 14 years. Such high-demand zones continue to attract both end-users and investors. He adds that the number of high-net-worth individuals (HNIs) in India is expected to rise significantly by 2034, which could drive up demand for premium properties.
Salil Kumar of CRC Group also supports the case for real estate. He argues that while gold provides easy liquidity, real estate offers capital appreciation and rental income over time. He cites reports showing that luxury housing now accounts for 34% of sales in major Indian cities—up from just 16% in 2018. Areas like the Noida-Greater Noida Expressway are expected to witness price hikes of up to 92% between 2020 and 2025.
While the arguments in favour of real estate are strong, return data shared by Adhil Shetty, CEO of BankBazaar, presents a different picture. According to him, when real estate and gold are compared purely in terms of returns over the past 10 to 15 years, gold has clearly outperformed.
He notes that gold has delivered annual returns (CAGR) of 11.3% to 14% over this period. In contrast, real estate has provided only about 5.2% to 6.4% annually. This means that ₹1 lakh invested in gold 15 years ago would be worth ₹5 lakh today, while the same investment in real estate would have grown to just ₹2.5 lakh.
Gold’s digital forms such as sovereign gold bonds and exchange-traded funds (ETFs) have made it even more accessible and transparent for retail investors. With low entry costs, ease of buying and selling, and inflation-beating returns, gold has become a popular tool for portfolio diversification.
ALSO READ: India’s net direct tax collection drops 1.34% to ₹5.63 lakh crore due to higher refunds
ALSO READ: How AI trends in 2025 are shaping the future of business and innovation
A quick look at CAGR and total growth over different investment periods shows gold outpacing real estate at every level:
| Period | Gold CAGR | Gold Growth | Real Estate CAGR | Real Estate Growth |
|---|---|---|---|---|
| 1 Year | 43.1% | 1.4x | 7.4% | 1.1x |
| 3 Years | 25.3% | 2.0x | 6.9% | 1.2x |
| 5 Years | 16.4% | 2.1x | 5.7% | 1.3x |
| 10 Years | 14.0% | 3.7x | 5.2% | 1.7x |
| 15 Years | 11.3% | 5.0x | 6.4% | 2.5x |
The data clearly shows that gold has been a better wealth builder over both the short and long term.
In the end, both gold and real estate have unique advantages. Real estate offers the promise of asset appreciation, steady rental income, and physical ownership. Gold, on the other hand, offers simplicity, liquidity, and strong returns, especially in uncertain times.
Experts advise not to consider gold as the main investment asset, but as an important part of a diversified portfolio—ideally making up 5% to 10%. While real estate continues to be a preferred choice for many due to its tangible nature, gold has delivered better returns over time, making it a compelling option for those looking for lower-risk and high-liquidity investments.
Copyright © © 2022 Copyright. All Rights Reserved with Arth Parkash