Realty offers better long-term growth despite gold rush: Experts
Even as soaring gold prices draw heavy investor interest in bullion and related instruments, property analysts say real estate continues to offer stronger prospects for sustained growth and wealth creation.
The price of 22-carat gold in Andhra Pradesh has been hovering around Rs 14,900 per gram, reflecting steady demand for the metal as a hedge against economic uncertainty. Analysts say the surge in gold buying points to wider market anxiety and safe-haven behaviour among both households and institutional investors. Central banks across the globe have also continued gold purchases despite high prices, reinforcing its position as a store of value.
However, real estate experts argue that property investment provides returns beyond price appreciation.
“Gold protects wealth during volatile periods, but it does not generate income,” said E. Ashok Kumar, president of the CREDAI Visakhapatnam chapter. “Real estate offers rental yield along with long-term capital appreciation, especially in regions backed by strong economic fundamentals.”
Recent trends in Andhra Pradesh indicate growing demand in the property market. Land and residential prices have risen sharply in and around urban centres such as Visakhapatnam, with values in key corridors climbing 40 to 50 per cent, driven by infrastructure projects and corporate expansion.
Mr. Kumar said reforms and policy changes at the state level, including revisions in land market valuations to better reflect transaction prices, show confidence in the sector’s resilience.
He highlighted that real estate combines physical utility with regular income through leasing and rentals, making it more suitable for long-term wealth creation.
“Real estate growth is tied to economic activity. As jobs increase and infrastructure expands, demand for housing and commercial space rises, supporting property values through real demand rather than sentiment,” Mr. Kumar said.
National market data also points to continued momentum, with leading listed developers reporting strong pre-sales in the first half of the financial year, indicating sustained interest from buyers and investors.
As investment choices evolve, many in Andhra Pradesh see real estate not only as shelter but as a source of income and capital growth aligned with broader economic trends, even as gold retains its traditional appeal.