Both real estate and gold are popular investment options in India. While real estate is considered a symbol of physical wealth and stability, gold is known for its liquidity and protection against inflation. But when we talk about returns over 10 to 15 years, has real estate outperformed gold? Let’s find the answer to this question based on expert opinion and data.
While real estate experts believe that the demand for luxury housing and corridor-based development has made the sector attractive in the long term, data-driven analysis paints a different picture, at least when returns of both assets – real estate and gold – are compared. Data shows that gold has given higher returns than real estate over the last 10-15 years. Gold investment has also proved to be a simple, liquid, and inflation-beating option for investors. In this comparison, there is wealth creation and physical security on the one hand and the potential for portfolio diversification and less complexity on the other.
Also read: Affordability takes a hit as prices rise & realtors push for larger flats
Arguments in favour of real estate
Surender Kaushik, Founder and MD, ARIPL, believes that “gold may shine in volatility, but real estate is the winner in wealth creation.” According to him, luxury housing has become the mainstay of residential sales in recent quarters, with a share of over 50%.
He says that investors are now turning to high-performing corridors like the Dwarka Expressway in Delhi, where home prices have increased five times in 14 years, according to PropEquity. The area is now well-established and is attracting both investors and end-users.
He also says that the share of HNIs (high-net-worth individuals) and UHNIs (ultra-high-net-worth individuals) in India can increase from 3% to 9% by 2034, which can lead to unprecedented demand for luxury real estate. According to him, in the next 10–15 years, real estate will not only provide appreciation but also asset stability, which is not possible with gold.
Salil Kumar, Director – Marketing and Business Management, CRC Group, also has a similar opinion. He believes that “while gold provides liquidity, real estate creates long-term wealth through capital appreciation and recurring income.”
He also says that the market, which was earlier based on affordable and mid-segment housing, is now dominated by the luxury segment. According to Knight Frank, the share of luxury housing sales in top Indian cities has increased from 16% in 2018 to 34% now.
Kumar points out that property prices in micro markets like Noida-Greater Noida Expressway are expected to increase by 92% between 2020 and 2025. Developments like Noida International Airport will further accelerate this growth. In such a situation, he considers real estate as a strategic sector in the next decade that has the potential to give better returns.
The numbers indicate something else
However, Adhil Shetty, Co-founder & CEO, BankBazaar, sees this comparison from a different perspective through data. He says that traditionally Indian families have considered real estate as a long-term asset. When the returns of two assets are compared, “the numbers tell a different story”, says Shetty.
He explains that real estate has given returns of about 5.2% to 6.4% annually in the last 10 to 15 years, while gold has grown at a rate of 11.3% to 14% in the same period.
According to him, if someone had invested Rs 1 lakh in gold 15 years ago, it would have been worth Rs 5 lakh today. On the other hand, the same amount in real estate would have reached only Rs 2.5 lakh. He adds that gold’s low cost, easy access in digital forms (such as sovereign gold bonds and exchange-traded funds), and the ability to beat inflation make it a better diversification tool.
Shetty says, “For people who want long-term assets with less complexity, gold has given better results than real estate.” However, he also clarifies that gold should not be considered a main investment but should be made a part of 5–10% of the portfolio, so that the risk can be managed.
Which asset class has the upper hand in terms of 10 to 15-year returns?
| Period | Gold CAGR | Gold Growth | Real Estate CAGR | Real Estate Growth |
| 1 Year | 43.10% | 1.4x | 7.40% | 1.1x |
| 3 Years | 25.30% | 2.0x | 6.90% | 1.2x |
| 5 Years | 16.40% | 2.1x | 5.70% | 1.3x |
| 10 Years | 14.00% | 3.7x | 5.20% | 1.7x |
| 15 Years | 11.30% | 5.0x | 6.40% | 2.5x |
Note: Compiled by BankBazaar; Based on FundsIndia Wealth Conversations report, June 2025.
If we look at the CAGR and growth over different periods, gold has outperformed in every respect. In 15 years, while gold grew at an annual rate of 11.3% and multiplied the investment by 5 times, real estate grew only 2.5 times at a rate of 6.4%.
Similarly, in 10 years, gold’s CAGR was 14% while real estate’s was only 5.2%. That is, in the long-term perspective, gold has not only given more growth, but it has also proved to be a more economical and effective investment option, as per the data.
Summing up…
The opinions of the three experts and the analysis of the data make it clear that both real estate and gold have their own advantages. While real estate has appreciation and stability, gold has liquidity and simplicity.
Ultimately, the investment decision depends on individual financial goals, risk appetite and understanding of asset allocation. Therefore, investors should understand the data, listen to the experts’ opinions and then take their own investment decisions.