Why investors prefer physical assets in uncertain geopolitical conditions

Amid geostrategic uncertainties in 2025, the real estate market has turned to investors seeking certainty and reassurance. Property, which is not a paper asset and thus very volatile, has its own intrinsic value, offering shelter, rental income, and potential for appreciation, all of which survive even if global markets pause or political unrest spreads.

"Prime real estate is not just a way to make money but also a shield, a physical sanctuary during the financial storms that are moulded by geopolitical tensions," said Manoj Goyal, Director, Forteasia Realty Pvt. Ltd.

Goyal's view reflects a wider mood among investors who now want something they can see and touch, especially when digital assets swing sharply with every headline. Investors are ready to accept that, although the value of digital portfolios can rise or fall with market sentiment, having a physical space places one's wealth in something that retains value, no matter how global power shifts. This sense of stability has become a key reason many investors are moving more of their money into brick-and-mortar assets.

Gunjan Goel, Director, Goel Ganga Developments, said, "In the face of government sanctions, trade wars, or political unrest in financial markets, investors are reassured by the steady income from rental properties and the permanent value of land. The nature of real estate being physical offers a safeguard against the more debatable aspect of paper assets, whose valuations are subject to market manipulation and geopolitical shocks."

Goel’s remarks underline a growing trust in slow and steady returns rather than rapid gains that may disappear overnight. In contrast to cryptocurrencies or equities, which are often speculative, property ownership provides a real return in the form of rent and is less likely to decline in value suddenly. A rent cheque, in this context, is a reminder that concrete properties provide stability in a world that is constantly changing.

Shashank Gupta, Director, RPS Group, said, "The year 2025 saw a financial landscape heavily influenced by rapid news cycles, social media sentiment, and geopolitical uncertainties, which led investors to rethink their wealth strategies and opt for the more tangible option."

Gupta's observation highlights how constant news and online chatter have made investors more cautious and more likely to choose assets that feel predictable. Paper wealth, comprising stocks, derivatives, and digital assets, might be attractive because of their liquidity and growth potential, yet they often suffer from unexpected jolts triggered by geopolitical events or market gossip.

"Discerning personal finance practitioners now promote a risk-diversification strategy that covers non-paper assets, including but not limited to, real estate, precious metals, and commodities. Such an approach not only mitigates risks but also facilitates smooth sailing in the turbulent seas of virtual wealth. With the realisation that paper wealth can evaporate within a day due to geopolitical crises or draconian regulations, investors now turn their attention towards the physically secured funds, which, apart from being the most stable, also carry the least risk and offer the most peace of mind needed for long-term financial resilience," said Gupta.