I have some ETFs/stock too. However: * lack of diversification seems unwise. * volatility and risk seem to me to be higher on a stock market. * taxation is approx twice higher on capital gains. Costs of investing on more mature markets, than local markets are not helping too. * my children will need a place at some point. Giving them some option seems to be wise, given what's happening to real estate market (I see some irony in that statement, but when in Rome...)

In general I would much prefer to not deal with real estate, but it simply would mean a lot bigger risk of a few unpleasant decades at the end of life.

All well and good, but notice that you moved from "I need real estate to appreciate faster than inflation or my family will suffer" to "I'd prefer to have real estate as part of an optimal investment portfolio because I believe it will produce better risk-adjusted returns". We're not really talking about actual desperation here. We're talking about your desire to maximize your family's well-being.

If that's what you care about, it would be wise to consider the impact on society as well. Society doesn't do well when resources are only accessible to a wealthy elite, and a stunted society will hurt your childrens' future. So maybe it's not such a good idea for real estate to be a scarce, rapidly appreciating asset, if it leads to unaffordable housing and economic desperation for the masses, political instability, etc.

I'm not saying don't invest in real estate, only that the political conditions that make real estate a good investment may be bad for society at large.