There are many investment options available for us like gold, shares, fixed deposits, policies, mutual funds and land. The reality is investment on LAND always provides high returns over a period of time. Just to cross check this reality, please ask the rent or cost of your house or flat or plot in the year 2002. What is the cost for the same property now? The difference shows the pace at which the land prices are increased, how the land (plot) is in demand. When compared to investments like stocks, bonds, gold, automobiles, real estate outperforms any other investment in profitability. It also offers an investor the opportunity to pay off the investment over a period of time through a variety of available financing strategies.
Even though you compare with equity linked portfolios, we need to wait for long term for the investments to give real returns. Hence, in India it is always better to invest in real estate compared to any other investment as the returns of the real estate are certain and predictable and the cost of the land is steadily increasing to 5- 6 %/ annum.