Stocks or property: Why does real estate still have an edge over equities despite higher returns?
Despite equities outperforming real estate over a 15-year horizon, Indian households continue to favor property due to its stability, rental income, and tangible ownership. Real estate's emotional and financial appeal is driven by factors such as leverage through home loans and generational narratives.
Indian households continue to favor real estate over equities despite the latter's higher returns. Real estate offers functional benefits such as leverage through home loans and dual utility as both an asset and a living or income-generating space. Experts say this is a reflection of how Indian investors perceive wealth and security, with real estate being a milestone and a tangible proof of having made it. Equities have historically outperformed real estate over a 15-year horizon, delivering 3-4 percentage points more annually. However, real estate provides stability, rental income, and tangible ownership, making it more reassuring for risk-averse investors. The Indian investor is balancing liquidity with legacy, returns with reassurance, and not making a binary choice between property and the market.
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