REAL ESTATE AS AN ALTERNATIVE INVESTMENT ASSET: A STUDY ON RISK–RETURN CHARACTERISTICS AND INVESTOR PERCEPTION

This study examines real estate as an alternative investment asset in comparison with traditional financial instruments such as equities and bonds. The research evaluates risk-return characteristics, diversification benefits, financing mechanisms, valuation practices, and investor perception toward property investments. The objectives of the study are: (1) to assess real estate’s effectiveness as an alternative asset class, (2) to analyze its risk-return structure relative to traditional investments, (3) to evaluate investor preferences across demographic groups, and (4) to determine diversification potential within investment portfolios. Primary data were collected through structured questionnaires distributed among 102 respondents using simple random sampling. Statistical analysis including mean comparison, percentage analysis, and hypothesis testing was conducted. The findings indicate that real estate demonstrates distinct risk-return characteristics, strong income stability, and long-term capital appreciation potential, thereby reinforcing its strategic role in diversified investment portfolios.