Both Equity & real estate are growth asset class and will always beat inflation in long term by substantial margin. Both real estate & equity market are driven by growth of the economy & businesses. In long term equities give better return than real estate but investors have earned better returns in real estate. Reason is in real estate people invest for long term may be 10-20 years so it saves there undue expenses, tax & bring out greed & fear emotions from investment.

But in equity we do it other way & that’s the reason investor feel properties give better return. Also remember their are many short comings with real estate as well like size of investment, leveraging, black money, title problem, encroachment, liquidity issue, maintenance charges etc.