FD vs real estate investment: Which is the better retirement option for millennials

Nakul Mathur, MD, Avanta India said FDs were the preferred investment option in the past. However, investors are beginning to recognise the importance of commercial real estate as a sophisticated asset class for generating high yields.

“With the advent of REIT funds, investing in A-grade commercial real estate has become much easier and can be on the investment portfolio of an average middle-class family. There is a growing interest in office stocks, retail units, shops, and other properties that provide recurring rental income as well as attractive capital appreciation. Buyers and investors began to recognise how commercial assets can outperform other investment strategies in terms of ROI. Commercial spaces provide a much higher return on investment than FD,” said Nakul.

FDs provide guaranteed returns that are not affected by market fluctuations. On the other hand, real estate is a high-yielding investment that can help you amass enormous wealth.

“In the traditional sense, contracts for residential buildings can be set up that allow for a consistent increase in rental rates every year. Another advantage of commercial real estate is that it will never become obsolete. FDs provide guaranteed returns that are not affected by market fluctuations. Because the returns on an FD are guaranteed, you will be able to diversify your investment portfolio. Real estate is a high-yielding investment that can help you amass enormous wealth if you play your cards correctly. Investing in real estate provides numerous opportunities for profit,” said Suren Goyal, Partner, RPS Group.

Anurag Goel, Director of Goel Ganga Developments said simultaneously, investing in real estate over time can help you earn high profits when you sell it at the right market conditions.

You can rent out your property and earn a monthly income. This will also assist you in gradually establishing a reliable source of income. As a result, a thorough understanding of all factors involved will assist you in making the best investment decision for you, he added.

Traditional investments have long been FDs, gold, or real estate in plots/flats because they are the safest investments.

Ankit Aggarwal, MD, Devika Group said that having real estate in one’s investment portfolio is a sign of wise investing. If it is a piece of land, its value will rise over time, and by the time you retire, you will have a valuable asset. Regardless of how many years of yielding rental income, it can be sold at capitalized value.