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This Diwali, Invest In Real Estate, Not In Gold: Last 5 Years ROI On Gold Vs. Real Estate!

This Diwali, Invest In Real Estate, Not In Gold: Last 5 Years ROI On Gold Vs. Real Estate!

Diwali is around the corner and buying gold is again on everyone’s radar. Gold is considered auspicious and has been a long-standing investment option for average Indian investors, but investments need to be made with rational logic and not based on emotions.

When it comes to gold vs. real estate, the realty investments outperform gold by a long margin. The myth about real estate sector being in the doldrums has been propagated for far too long now. In reality, the property market is showing signs of revival and if we consider the last 5 years of performance, real estate sector has outperformed gold in terms of ROI.

While gold has seen a -8.65% growth, real estate has grown by an average of 12-14% (absolute) in the past 5 years. In simple terms, gold’s per gram value has come down by Rs. 256.99 in last 5 years while real estate sector has seen yields of even 27% in certain markets like Kochi or an average yield of 15-18% in places like Mumbai, Pune, Bangalore, Lucknow, and Kanpur. The lowest yield has been of 1-2% in certain pockets, but even then it’s a positive growth.

Do remember that real estate prices are at historic lows, but they are positively looking northwards and the returns are only going to grow in future. Gold is an investment bet, but not as lucrative as real estate. So if you consider investing in a business activity, you do have a right to earn optimum returns and this Diwali, make sure you invest in property to get the biggest bang for your buck!

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