If you look at the past, you see cost of living is always increasing. However, not every component contributes in living cost increases. But tangible or hard assets do. Direct real estate is the best tangible assets, that are worthy for investment. Real Estate Investment have a glorious history as an inflation hedge.
Protection Against Inflation
Unlike soft assets, hard assets have their intrinsic value. Such as gold, commodities, and real estate. It may devalue for a shorter period, but if you look at it in longer terms. There is always a substantial return on them. Moreover, in case of real estate or property, land is one commodity. The structure built upon it is another commodity. Both can serve the basic needs and limited in supply. And therefore, it provides excellent protection against inflation.
Real estate not only preserves its value during inflation like any other hard assets. But it also becomes a source of income through rental payments. By leasing the land or building or apartment, it is a protection against inflation. Therefore, Real Estate Investment is always beneficial for long-term investment. However, sometimes it may surprise you in a shorter period too. It depends upon the selection of quality property at prime locations.