Why is real estate investment attractive?

A residential home/building represents the most attractive real estate property for large
majority of investors. Such investment is attractive due to the following reasons :
(1) Ownership of a residential house provides owned accommodation and gives
satisfaction to the head as well as family members. It acts as one useful family asset
with saleable value.
(2) There is capital appreciation of residential buildings particularly in the urban areas.
(3) Loans are available from different agencies like banks, HDFC and so on for buying,
construction or renovation of owned residential building.
(4) Interest on such loans is tax deductible within certain limits.
(5) Wealth tax benefit is available in the case of residential building as the value is
reckoned at its historical cost and not at its present market price.