Real estate: Essential component of complete asset portfolio

15 May 2023 CW Team

One of the primary advantages of real estate investment is the potential for appreciation in value over time. Historically, real estate values have tended to increase over the long term, although there can be fluctuations in the short term.

Additionally, real estate can provide a stable source of income through rental payments, which can help balance out a portfolio that includes more volatile investments like stocks.

Another advantage of real estate is its potential for diversification. Real estate investments can be made in a variety of asset classes, such as residential, commercial, industrial, and retail properties, as well as in different geographic locations. This can help reduce the overall risk of a portfolio by spreading investments across different sectors and markets.

However, real estate investments also come with their own set of risks and challenges. Property values can be impacted by factors such as economic conditions, interest rates, and changes in zoning or land-use regulations. Additionally, property management can be time-consuming and require specialised knowledge and skills.

Overall, real estate can be an important component of a well-diversified investment portfolio, providing potential for appreciation, stable income, and diversification. However, it's essential to carefully consider the risks and challenges before making any investment decisions.

ABOUT THE AUTHOR:
Dharmesh Shah is CEO of Hero Realty, the real estate arm of Hero Enterprise. Hero Realty developed approximately 150 acres of residential townships in Haridwar along with 230 acres of industrial parks in Haridwar itself. Also developing around 6 million sq. ft. in Ludhiana, Mohali and Gurugram, under the brand name – Hero Homes.

Real estate can be an essential component of a complete asset portfolio, providing diversification, stability, and potential for long-term growth. Real estate investments can be made in various forms, including direct ownership of property, investment in real estate funds, and real estate investment trusts (REITs). One of the primary advantages of real estate investment is the potential for appreciation in value over time. Historically, real estate values have tended to increase over the long term, although there can be fluctuations in the short term. Additionally, real estate can provide a stable source of income through rental payments, which can help balance out a portfolio that includes more volatile investments like stocks. Another advantage of real estate is its potential for diversification. Real estate investments can be made in a variety of asset classes, such as residential, commercial, industrial, and retail properties, as well as in different geographic locations. This can help reduce the overall risk of a portfolio by spreading investments across different sectors and markets. However, real estate investments also come with their own set of risks and challenges. Property values can be impacted by factors such as economic conditions, interest rates, and changes in zoning or land-use regulations. Additionally, property management can be time-consuming and require specialised knowledge and skills. Overall, real estate can be an important component of a well-diversified investment portfolio, providing potential for appreciation, stable income, and diversification. However, it's essential to carefully consider the risks and challenges before making any investment decisions. ABOUT THE AUTHOR: Dharmesh Shah is CEO of Hero Realty, the real estate arm of Hero Enterprise. Hero Realty developed approximately 150 acres of residential townships in Haridwar along with 230 acres of industrial parks in Haridwar itself. Also developing around 6 million sq. ft. in Ludhiana, Mohali and Gurugram, under the brand name – Hero Homes.

Infrastructure Transport

19 Dec 2025

Tripura Rail Survey Approved For Jirania–Bodhjung Link

The Ministry of Railways has approved a Final Location Survey (FLS) for a proposed new railway line between Jirania and Bodhjung Nagar in Tripura. The planned section will span 14 km and is estimated to cost around Rs 4.2 million, with the entire alignment located within West Tripura district. The approval marks a key step towards strengthening railway infrastructure and supporting industrial growth in the state. Bodhjung Nagar is Tripura’s principal industrial and commercial hub, developed mainly for resource-based industries such as rubber, bamboo and food processing. The proposed Jirania..

Infrastructure Transport

19 Dec 2025

MCF Raebareli Rolls Out Its 15,000th Passenger Coach

The Modern Coach Factory (MCF) in Raebareli, Uttar Pradesh, has reached a major production milestone with the manufacture of its 15,000th passenger coach on December 15, the Ministry of Railways said. During the current financial year 2025–26, the unit has produced a total of 1,310 coaches so far. Established in 2007 at Lalganj in Raebareli, MCF is among India’s most advanced passenger coach manufacturing facilities. Built at a cost of around Rs 31.92 billion, the factory has an installed annual capacity of 1,000 coaches and is located about 3 km from Lalganj on the Kanpur–Raebareli Roa..

Infrastructure Transport

19 Dec 2025

RVNL Wins Gandak River Rail Bridge Contract

Rail Vikas Nigam Limited (RVNL) has received a Letter of Award from North Eastern Railway for a major railway infrastructure project valued at Rs 1.65 billion. The contract relates to the construction of the substructure for a key railway bridge over the Gandak River. The bridge will be constructed between Paniyahwa and Valmikinagar stations as part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section. Designed to enhance capacity and operational efficiency, the structure will comprise 14 spans of 61 metres each and will be supported by double D-type well foundations. The des..