Should Property Be a Part of Your Long-Term Investment Portfolio?

As property prices rise and rental yields strengthen, more Indians are viewing real estate as a reliable path to long-term wealth. But does it truly deserve a place in your investment portfolio?

Published by India Today

For generations, property has been seen as a symbol of financial security in India. But today, it represents much more than that. With rising economic aspirations and changing investment preferences, many investors now view real estate as a strategic asset that not only preserves wealth but also helps in long-term financial growth.

Real Estate: A Strong Hedge Against Inflation

According to Ajay Malik, Chief Strategy Officer, RISE Infraventures Ltd, Indian investors are shifting their focus beyond traditional fixed deposits and exploring property as a more rewarding alternative.

He explains, “Indian investors are increasingly rebalancing their portfolios beyond traditional FDs, and real estate, especially in Delhi NCR, is emerging as a strong hedge against inflation. While fixed deposits offer safety, property combines appreciation with steady income.”

Over the last five years, residential property values in Delhi NCR have grown at an impressive 13.7% compound annual growth rate (CAGR), reflecting an 81% price jump between 2020 and 2025. This consistent growth demonstrates the resilience of the real estate market, even during periods of economic uncertainty.

Rental returns have also improved, ranging between 2% and 2.5% in Delhi, and reaching up to 3% to 3.5% in areas like Noida. This dual advantage of property appreciation and rental income makes real estate one of the most stable investment options available today.

Malik adds, "For many families, this dual benefit of growth and income is turning property into a foundational wealth-building pillar. It adds stability to a diversified portfolio, especially during volatile market cycles, and anchors long-term wealth creation."

Why Property Deserves a Place in Your Portfolio

Property remains one of the few assets that offer a mix of ownership, steady returns, and long-term appreciation. However, experts advise investors to approach it with patience and strategy. Real estate should complement your portfolio, not completely dominate it.

Unlike stocks or mutual funds, real estate is not a liquid investment. It takes time to generate returns, and one must be prepared for a longer holding period. But this very nature also brings a sense of security — it's backed by a physical asset that holds tangible value.

Moreover, as India continues to urbanize and infrastructure projects expand rapidly, the demand for quality housing is growing. New expressways, metro lines, and smart city developments are opening up new real estate corridors, especially in regions like Delhi NCR, Gurugram, and Noida.

For investors who are willing to think long-term, real estate offers consistent growth, rental returns, and the peace of mind that comes with owning a tangible asset. Property is not just about luxury anymore — it's about financial prudence and long-term planning.

The Bottom Line

As India's economy grows and the real estate sector continues to mature, property is increasingly being viewed as a reliable cornerstone for wealth creation. It provides both financial growth and emotional assurance, something few other assets can match.

For modern investors looking to balance security and growth, including property in their long-term investment portfolio can be a wise and strategic decision.