Real estate in 2025: Is it worth investing or time to look elsewhere?

​For centuries, real estate has been synonymous with stability and success. People have always aspired to own property as a way to preserve or grow their wealth. But progress does not stand still, and in 2025 there are now many alternative investment options.

The idea of using real estate as an investment dates back to ancient times. In Ancient Rome, land and buildings were considered important sources of wealth and status. Land ownership provided a stable rental income and served as a guarantee of social standing. During the feudal era, land was the main asset determining power and influence.

Painting: Cincinnatus at the Plow. Unknown artist, 20th century.

As cities and commerce developed, interest in real estate shifted from agricultural land to urban properties—houses, workshops, and commercial buildings.

In the 20th century, people began to consciously use real estate as a hedge against inflation. After the world wars and hyperinflation in Germany, Austria, and other countries, it became clear that "hard" assets—such as land and buildings—retain value much better than depreciating currencies. In the postwar years, particularly from the 1970s amid oil crises and rising inflation in Western economies, real estate strengthened its reputation as a "safe haven" for capital.

"Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world," said U.S. President Franklin D. Roosevelt.

How people invest in real estate in 2025

Today, there are several main ways to invest in real estate. The simplest and most common method is direct purchase of a house or apartment with the expectation of future price growth. Another popular option is buying property for rental income.

Other approaches include investing in commercial real estate (offices, retail spaces, warehouses) and purchasing properties at the construction stage for resale at a higher price upon project completion.

It is worth recalling the advice of Rich Dad Poor Dad author Robert Kiyosaki, who not only built wealth through regular real estate transactions but also established a career as an investment expert.

"Real estate is one of the most powerful assets because it can generate cash flow, appreciate in value, and provide tax advantages," he wrote in his book.

The downsides of real estate

However, in recent years, the real estate market has been showing declining returns. In many countries and regions, property price growth has slowed or stopped altogether. Meanwhile, investor expenses have significantly increased: mortgage rates, property taxes, and maintenance costs (utilities, repairs) are all rising. Moreover, rental income often fails to keep pace with property price growth, resulting in lower-than-expected yields.

Another major barrier for investors today is the high entry threshold. The cost of quality properties in major cities has reached levels affordable to only a limited number of investors. At the same time, the market is slowing down: transactions take longer to close, tenants are more cautious, and regulatory requirements are becoming stricter.

One should also remember that real estate is subject to physical deterioration. Over time, buildings require increasing investments in maintenance and repairs, and without proper care, their value may stagnate or even decline. Additionally, real estate is vulnerable to force majeure: military conflicts, natural disasters, floods, earthquakes, or fires can completely destroy a property. Even with insurance, recovery after such events takes time and often does not fully compensate for the losses.

And these are not the only risks facing real estate investors. It is a complex market, subject not only to booms and busts but also to full-blown collapses.

From bubble to financial crisis

Throughout economic history, housing bubbles have repeatedly triggered major financial catastrophes. The most famous example is the 2007–2008 crisis that began in the United States.

A boom in easy mortgages, low interest rates, and mass securitization of mortgage loans led to an artificial surge in property prices. When borrowers began to default en masse, the bubble burst, causing bankruptcies of major banks, market crashes, and a global recession.

Another example is Japan’s "lost decade" crisis. In the late 1980s, the Japanese real estate and stock markets became severely overheated due to speculative mania and easy credit. After a tightening of monetary policy, property prices collapsed, triggering a banking crisis and prolonged economic stagnation.

What are the alternatives?

In 2025, many experts and politicians advise against investing in real estate. For example, the son of former President Donald Trump decided long ago that it is much more promising to invest in cryptocurrencies. In a recent video, Eric Trump explicitly urged people to buy Bitcoin.

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And his reasoning is clear. In today’s world, it is no longer necessary to invest solely in real estate to achieve income, preserve capital, or make long-term investments. Cryptocurrencies are proving to be much more effective in many respects.

First, the crypto market offers high returns thanks to asset volatility, participation in DeFi products, staking, and other tools. Second, capital preservation in crypto has become more flexible. Stablecoins, tokenized assets, and decentralized protocols allow investors to hedge against inflation without the need to buy physical real estate.

Finally, cryptocurrencies are much more accessible. You don’t need hundreds of thousands of dollars to get started—just a small amount of capital and access to a trading platform. Moreover, crypto assets are vastly more liquid: unlike real estate, they can be bought or sold at any moment in response to market changes.

According to a survey by brokerage firm Futu, today’s generation of Zoomers prefers investing in Bitcoin over buying real estate. Most respondents would rather own two Bitcoins than come up with the $128,400 needed for a home down payment.

Even professionals from the real estate industry are increasingly interested in digital assets. Robert Kiyosaki himself is now investing less in real estate and more in Bitcoin.

Grant Cardone, founder and CEO of Cardone Capital—a firm managing about $5 billion in real estate—also believes in the leading digital asset. He is reportedly ready to invest in purchasing 1,000 BTC.

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To invest or not to invest

Today’s investment opportunities are significantly broader and more flexible than they were just a few decades ago. Real estate remains an important asset, but relying on it as a universal solution for capital preservation and stable income is becoming increasingly difficult.

High entry barriers, property deterioration, market instability, and regulatory risks are prompting investors to explore other options. At the same time, cryptocurrencies have already proven their effectiveness: they not only preserve capital but also offer opportunities for growth in a fast-moving world where speed, flexibility, and asset accessibility are critical.

That said, it is not necessary to focus exclusively on cryptocurrencies. For a balanced approach, investors should also consider other modern tools. Today, both the Forex market and stock markets offer excellent opportunities—successfully addressing the same goals of income generation, capital preservation, and accessibility. The key is to think broadly, embrace new investment formats, and avoid blindly relying on outdated strategies that no longer reflect the realities of a rapidly changing world.