Real Assets: Definition, Types, and Why Invest in Tangible Assets

A building, a bridge, farmland, a gold bar, a plot of land: real assets are the tangible assets of the economy—those whose value does not depend on a promise enshrined in a security but on their physical utility and scarcity. Long reserved for institutional investors, they are returning to the forefront of asset allocation as investors seek to decouple themselves from financial markets and protect themselves against monetary erosion.

This guide defines real assets, explains how they differ from financial assets, outlines the major categories of tangible assets, discusses the reasons for investing in them, and describes how to gain access to them. It also presents a well-reasoned argument: among real assets, real estate—that is, land itself—is perhaps the purest form of real asset.

What is a real asset?

A real asset is a tangible good whose value is based on its utility and scarcity: it has intrinsic value, linked to its physical attributes, that is independent of the stock markets. A building houses occupants, infrastructure transports energy or people, land produces crops, and a plot of land supports the buildings of tomorrow: each provides a concrete service that can be measured—and that cannot be printed.

This tangible nature has a direct economic consequence: the supply of real assets is limited by geography, resources, and construction time. New stocks or bonds can be issued; new, well-located land cannot be created. It is this structural scarcity that underpins their unique role in wealth management.

Key takeaway: A real asset is a physical asset whose value derives from what it is and what it is used for, not from what it promises. Real estate, infrastructure, land, commodities, gold, and property are the main forms of real assets.

Real Assets or Financial Assets: What's the Difference?

A financial asset (stock, bond, mutual fund share) is a security: it represents a claim on an issuer or an ownership interest in a company. Its value depends on the issuer’s financial health, market expectations, and interest rates; it is determined continuously in the order books, with the volatility that comes with it.

Real assets have intrinsic value. A warehouse remains a warehouse, regardless of where the CAC 40 stands; land continues to yield returns even when markets correct. This autonomy does not shield real assets from market cycles (real estate has its own, as do commodities), but it results in a historically weak correlation with stocks and bonds: real assets do not rise or fall for the same reasons or at the same times as financial portfolios. This decorrelation is, however, neither complete nor constant: a major economic crisis or a sharp rise in interest rates can simultaneously affect both the stock markets and the value of tangible assets.

Diagram: Two Value Systems

• Financial asset: issuer → security (stock, bond) → market-determined value → depends on expectations, interest rates, and market liquidity.
• Real asset: physical good → utility and scarcity → depends on actual demand (housing, production, transportation) → partial decoupling of markets, at the cost of reduced liquidity.

Key takeaway: Financial assets offer promise, while real assets deliver. This fundamental difference explains the partial decorrelation of tangible assets, their specific behavior in the face of inflation, and their trade-off: liquidity that is much lower than that of a listed security.

The Major Categories of Real Assets

This asset class is broad and diverse. Here is an overview of three categories, each with its own characteristics.

Real Estate and Land

Real estate is the most familiar type of tangible asset: residential, office, retail, logistics, and healthcare properties, both in France and internationally. It generates rental income, can appreciate in value, and can be acquired directly, through real estate investment trusts (REITs), or via club deals. Land, on the other hand, is often overlooked in these discussions, even though it forms the foundation: undeveloped land, without tenants or buildings, whose value is based on development rights and future demand. One generates income; the other embodies scarcity in its purest form: land is the only factor of production that cannot be manufactured.

Infrastructure and Raw Materials

Infrastructure (energy, transportation, telecommunications, and water networks) offers long-term cash flows, often backed by inflation-indexed contracts or concessions; these opportunities are accessed almost exclusively through specialized funds. Commodities (energy, metals, agricultural products) are more volatile and are primarily traded through listed instruments; gold plays a unique role here, held as a store of value: the world’s wealthiest individuals allocate approximately 3% of their wealth to it (Knight Frank Wealth Report), even though it generates no income whatsoever.

Farmland, forests, and vineyards

Investing in productive land is the quintessential long-term tangible investment. Farmland generates rental income and appreciates in value: in the United States, cultivated land was worth an average of about $5,830 per acre in 2025, up 4.7% year-over-year (USDA/NASS), with national averages masking significant variations by state and soil quality. Forests produce timber and, in France, offer inheritance tax benefits; vineyards combine operating income with asset value. These assets require patience and expertise, with investment horizons measured in decades.

Category	Performance Engine	Liquidity	Admission Ticket	Main risk
Rental Properties	Rent, valuation	Low	Medium to high (low through real estate investment trusts)	Real Estate Cycle, Vacancy Rate
Land (property)	Scarcity, building rights, capital gains	Very low	Variable, raised live	Local Market, Permits
Infrastructure	Long-Term Contractual Cash Flows	Very low (depth)	Fund-based method	Regulations, Enforcement
Raw Materials	Supply and Demand Cycles	High (side supports)	Low	High volatility
Gold	Store of value, scarcity	High	Low	No income, price fluctuations
Farmland	Rent, Assessment	Very low	Medium to high	Agricultural Risks, Regulations
Forests, vineyards	Use, Heritage Value	Very low	Medium	Climate, the price of wood or wine

Key takeaway: Three categories define tangible assets: real estate and land (buildings and the land they stand on), infrastructure and raw materials (the functioning economy), and productive land (the long term). Each has its own driving force, liquidity, and price point: asset classes are selected category by category.

Why Invest in Real Assets?

There are four arguments supporting the heritage value of tangible objects, each with its own counterargument.

Diversification. A portion of real assets introduces performance drivers into a portfolio that are unrelated to listed markets: housing demand, infrastructure contracts, and land prices. The historically low correlation with stocks and bonds reduces the portfolio’s overall sensitivity to market shocks, though it does not eliminate it.

Protection against inflation. Historically, the value of tangible assets tends to keep pace with—or even outpace—the general rise in prices: rent indexation, adjustable infrastructure contracts, and construction costs and land prices that rise along with everything else. This characteristic is an observed trend, not a guarantee: it varies depending on the asset, the time period, and the entry point, and a rapid rise in interest rates intended to combat inflation can, initially, weigh on the value of real assets themselves, as the real estate market demonstrated in 2022–2023.

Scarcity and real demand. The strongest driver of real assets remains the physical imbalance between supply and demand. A well-documented example: the United States has a structural housing shortage of approximately 3.7 million units (Freddie Mac, 2024), driven by demographics and years of under-construction. Behind every missing home lies a plot of land that must be found, developed, and built upon: the demand for land automatically stems from this shortage. Our analyses of the housing shortage in Texas and the lack ofaffordable housing in the United States elaborate on this argument.

Income or capital appreciation.Depending on the category, real assets generate a cash flow (rent, lease payments, contracts) or capital appreciation: in the United States, the average value of agricultural land rose from $196 per acre in 1970 to $4,350 in 2025, representing an average annual appreciation of nearly 6% over more than half a century (USDA/NASS, Land Values Summary, August 2025), with some periods significantly above and others below this average. Past performance is not indicative of future results. 

The trade-offs are real and must be accepted up front: illiquidity (reselling takes months, sometimes years), sometimes high entry barriers, less frequent and less transparent valuation than on the stock market, specific fees and tax implications, capital loss risk specific to each asset (vacancy, weather-related risks, denied permits, local economic downturns), and, for assets held abroad, currency risk that can erode performance when converted to euros.

Key takeaways. Diversification, a historically favorable track record against inflation, physical scarcity, and real demand: the case for tangible assets is structural. So are their trade-offs: illiquidity, a long-term investment horizon, and risks specific to each asset. None of this is guaranteed; it all requires analysis.

How can I invest in real assets?

Four access routes, ranging from the most shared to the most direct.

Listed funds and securities. Real estate investment trusts (REITs) and listed real estate companies, exchange-traded funds (ETFs) on commodities, and infrastructure stocks: the most liquid and accessible option (a few dozen euros), at the cost of a correlation with the stock market that dilutes some of the decoupling benefit of tangible assets.

Unlisted funds. SCPIs for real estate, land investment groups for forests and vineyards, infrastructure or private debt funds for major networks: outsourced management, moderate investment amounts, but limited liquidity and fees to be considered.

Direct purchase. An apartment, a plot of land, a forest: total control, a high price tag, and the responsibility for management and expertise. It’s the purest—and most demanding—path.

Co-investment and platforms. Club deals and dedicated transactions provide access to large-scale assets (buildings, real estate portfolios) in partnership with an operator, with a mid-range investment amount and accepted illiquidity during the transaction. This is the format for savvy investors.

A quick note on taxation, without making it the main topic: each asset is subject to its own tax regime depending on how it is held. Real estate income is taxed according to the standard tax schedule with a 17.2% social security contribution; furnished rental properties fall under the BIC category (micro-BIC or the LMNP actual-cost regime); forests and land have their own specific rules; and foreign assets are subject to tax treaties. These rules are current as of today and should be verified with a tax advisor before making any decisions.

Key takeaway: Access to real assets can be achieved through listed vehicles (liquid but correlated), unlisted funds (managed by third parties), direct purchases (demanding), or co-investments (reserved for experienced investors). The appropriate channel depends on the investment amount, liquidity needs, and available expertise; tax implications must be assessed on a per-asset basis.

Real Assets and Sustainable Investing (ESG)

Tangible assets have become the natural focus of sustainable investing: energy transition infrastructure, high-environmental-performance real estate, certified forest management, and sustainable agriculture. The logic is consistent: financing physical assets means directly financing the real economy and its transformation, whereas a publicly traded security has only an indirect impact.

Two points are worth noting. First, the “sustainable” label does not replace the need for analysis: a green infrastructure fund remains an illiquid investment, with its own fees, potential leverage, and risk of capital loss. Second, the actual impact is measured on a project-by-project basis, not based solely on marketing promises: the rigor of the analysis is the same as for any asset, with the added element of intent.

Key takeaway: Real assets give sustainable investing its most tangible form: infrastructure, buildings, and land that are undergoing transformation. The need for analysis, however, remains the same: “sustainable” does not mean liquid, risk-free, or profitable by definition.

Real estate, the quintessential tangible asset: the Landquire model

Let’s go over the criteria for real assets one by one: tangible—land is, by definition; scarce—its supply is the only one that is strictly non-expandable; endowed with use value—it supports everything that is built on it; uncorrelated—it is not listed on any exchange; it has historically appreciated in value, with an average annual growth rate of nearly 6% over more than fifty years in the United States (USDA/NASS). Land doesn’t just check a few boxes for real assets—it checks them all. It is this conviction that earned Thibaut Guéant recognition from Challenges magazine in 2024 for his analysis of land as a tool for wealth diversification.

And demand is catching up. The U.S. housing shortage (approximately 3.7 million units, according to Freddie Mac) will not be resolved without land: every construction project begins with a plot that has been identified, zoned, and developed. This is precisely where Landquire comes in: acquiring undeveloped land at a discount, adding value through land rights (zoning, subdivision, access to utilities), and then reselling it to individuals, developers, or builders. Each transaction is structured within a dedicated entity (an LLC formed as a joint venture between investors and Landquire), where the land serves as collateral, in a virtually debt-free model, over a short cycle of 24 to 36 months, with no rental management. Since 2021, the team has managed more than 130 land projects involving over 1,000 land acquisitions: this track record from past transactions is documented on our page featuring land projects already sold.

A methodological clarification, because tangible value alone is never enough: the purchase discount is demonstrated through comparable transactions, not through a listed price, and demand for real estate is measured at the county or city level, never based on a national trend. It is this analysis, parcel by parcel, that distinguishes a real asset from mere land.

By way of illustration, a completed transaction in Arizona (Yuma County) spanned 626 days—approximately 21 months—with an observed return on investment of 57.87%. This result, which was observed in a specific transaction under specific conditions, is not representative: it is not indicative of future performance and cannot be extrapolated.

The figures presented in this video reflect observed past performance based on specific, non-representative cases and are not indicative of future results. This type of investment is intended only for experienced investors.

The usual disclaimers, of course, because even strong conviction does not exempt us from transparency: Landquire real estate is a direct investment backed by a tangible asset—neither an SCPI nor an FIA—reserved for sophisticated investors, illiquid during the term of each transaction, and carrying a risk of capital loss related to the execution of the transaction and the local market. It is one real-asset category among many, suitable as part of an investment portfolio, but never as a substitute for everything else. The model is detailed on our Landquire real estate investment page, and its practical application is described on the pages “Investing in Real Estate in the U.S.” and “Real Estate in Texas and Florida.”

Key takeaway: Real estate embodies all the characteristics of a real asset: it is tangible, inherently scarce, offers utility value, is unlisted, has historically appreciated in value, and is backed by documented demand (the U.S. housing shortage). The Landquire model positions it as a short-cycle allocation component for savvy investors, with the illiquidity and risk of capital loss inherent in any tangible asset.

FAQ: Real Assets