Real estate is a tangible and stable asset class that has been a leading performer throughout history. As a result, it is a favorite among large institutional and high-net-worth individuals for many reasons, including:
- Real estate appreciates in value over long periods and is less volatile than financial markets and cryptocurrencies, offering stability during turbulent times.
- Real estate is a hedge against inflation and currency depreciation and an excellent long-term store of value.
- Real estate is a productive asset that generates predictable income from rent.
- When included in a diversified portfolio of different asset classes, real estate enhances the portfolio’s risk-return profile.