Investment decisions are central to long-term financial planning and wealth creation in a developing economy such as India. Among the diverse investment avenues available to individual and institutional investors, real estate and stock market investments occupy a position of particular prominence owing to their scale, visibility, and demonstrated potential for capital appreciation. This study undertakes a systematic comparative analysis of the investment returns, risk characteristics, and long-term wealth creation potential of real estate and stock market investments in India over a five-year period from 2021 to 2025. Employing secondary data sourced from the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and published real estate market indices, the research applies a battery of financial and statistical tools including return analysis, standard deviation, Sharpe ratio, Pearson correlation, and simple linear regression. The empirical findings indicate that stock market indices — specifically the Nifty 50 and BSE Sensex — generated higher average annual returns (13.54% and 12.22% respectively) compared to real estate indices (8.4% for real estate and 10.1% for residential property). However, the higher returns of equity investments are accompanied by significantly greater volatility, as evidenced by larger standard deviations. A strong positive correlation (r ≈ 0.75) was found between equity and real estate returns, suggesting that both asset classes respond similarly to broad macroeconomic stimuli, while still offering meaningful diversification benefits due to imperfect correlation. Regression analysis further revealed a moderate explanatory relationship (R² = 0.563), indicating that approximately 56.3% of real estate return variation can be attributed to stock market movements. The study concludes that neither asset class dominates unconditionally, and that optimal investment strategy depends on investor-specific risk tolerance, investment horizon, and liquidity requirements. A balanced and diversified portfolio incorporating both asset classes is recommended to maximize risk- adjusted returns and long-term wealth accumulation.