Should real estate be a part of your investment portfolio? Listen to what experts think
Q.Can real estate be a reliable hedge against inflation?
Prableen Bajpai,Founder,FinFix Research and Analytics: Not always. Real estate growth in India varies widely. Returns often overlook CAGR, with a doubling of returns in 10 years reflecting just 7.2% pre-tax CAGR. While it can outpace inflation, high costs and uneven growth make guaranteed returns uncertain.
Anuj Puri,Chairman and Founder, ANAROCK Property Consultants: Yes. Real estate offers inflation protection and stability, with less volatility than stocks or gold. Rising demand, scarcity, and costs drive property values and rental income. As per ANAROCK Research rentals in India’s top seven cities rose over 70% from 2021 to September 2024.
Rohit Shah,Founder & CEO, GYR Financial Planners: No. Real estate struggles to consistently outpace inflation, often lagging behind equities by 4-6 % in the long term, according to a study conducted by Funds India. It can outpace inflation with correct market timing, but gold is more reliable in achieving this.
Reshmi Panicker,Executive Director, Land Services and Residential, Knight Frank India: Yes. Real estate offers moderate risk and returns, balancing equities and gold. After 2020 quantitative easing, it has acted as a hedge. Hyderabad and Bengaluru have seen 6% and 5% annual price growth, respectively, since 2010, aligning closely with inflation rates.
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