Gold vs Real Estate: Global instability has emerged as two major investment options in 2025. Geophysical stress has brought the demand for gold and the sentiment to the sky. At the same time, the real estate has become quite a sector sector due to three consecutive deduction of interest rates from RBI.
But, which of the gold and real estate is better in terms of investment? Let us know from experts what is the specialty of both asset class and in which investors should invest in.
Gold safe investment, but also trouble
Gold prices have increased by about 30% in this year i.e. 2025. The main reason for this has been global uncertainty, currency fluctuations and constant procurement of gold by central banks.
Atul Monga, CEO of Basic Home Loan, says, “Gold remains a safe support in current instability. Options like Digital Gold and ETF have made it even more accessible.” However, gold does not give any regular returns. At the same time, Adil Shetty, CEO of Bankbazaar.com, says, “Gold is a passive asset. Neither does it get fare nor dividend. It does not make a profit without selling it.”
Apart from this, additional expenses such as storage, insurance and making charge on jewelery are also involved in keeping physical gold.
How much right for real estate investment?
The real estate market has recently got a big support from RBI. The RBI has reduced the repo rate in June MPC by 50 basis points to 5.5% and CRR to 100 basis points to 3%. This has affected the home loan rates, which has seen an increase in demand for urban housing.
Atul Monga explains, “Real estate gives both capital growth and rental income in the long term. If your income is stable and investment attitude is a long term, it can be a strong way to make property.”
However, the cost of investment in property is higher. There is also a lack of liquidity in it, that is, when you cannot raise money by selling the house. Adil Shetty says, “It is not easy to sell the property. You cannot sell slightly like gold. It takes time to complete the legal process.”
How to take investment decision?
Experts believe that the right choice of investment in gold or real estate depends entirely on your financial goals, risk profiles and duration.
If your purpose is liquidity and portfolio diversification, gold can be a better option. But if you want wealth creation and stable returns in the long term, then real estate should be considered.
Balance between the two asset classes can also be a good view. According to the expert, gold in short term and real estate in long-term- can be ideal strategy for financial stability and growth.
Also read: Gold Loan Default: Your gold can be auctioned if you do not pay the gold loan, what are your legal rights?