Real Estate ETFs Offer Higher Returns Than Buying a Home

A model comparison shows that purchasing a €160,000 apartment with a 20‑year mortgage at a 3.7 % rate would cost roughly €755 per month, with total interest payments of about €53,600. Assuming Slovak property prices continue to rise 6 % annually, the apartment’s value could reach around €513,000 after 20 years.

By contrast, investing the same €160,000 in broad market ETFs such as the S&P 500 historically yields higher long‑term growth, while real‑estate‑focused ETFs that hold REIT shares have delivered annual returns of 20 %–25 % in the past year. Leading funds include the WisdomTree New Economy Real Estate Fund (24.93 % return) and Virtus Real Asset Income (23.98 % return). These ETFs provide diversification, liquidity and dividend income without the management burdens of owning physical property.