Property investment refers to the act of purchasing or owning an asset with the intention of earning a return on that investment through rent, sale, or other means. In real estate terms, it involves buying property for the purpose of generating income and/or capital appreciation. This can be done by purchasing residential or commercial properties to either hold as rental units or resell at a higher price in future. Property investments are considered an essential part of diversifying one's portfolio, providing both liquidity and potential for long-term growth.