Real estate is widely held to be a hedge against inflation, yet the belief is often asserted rather than examined. This paper sets out when, why and to what degree real estate protects purchasing power, with particular attention to the circumstances of Gulf family offices whose home currency is pegged to the US dollar. It identifies the three channels through which property hedges inflation, namely rent indexation, replacement-cost dynamics and the erosion of nominal debt, and shows that the strength of the hedge depends heavily on property type, lease structure and the use of leverage rather than on the asset class as a whole. Using modelled returns across inflation regimes and three worked holdings, it demonstrates that short-lease, supply-constrained and leveraged property hedges well, while long-lease, fixed-income-like property hedges poorly and can behave like a bond in an inflationary shock. It closes with a portfolio-construction framework and an implementation roadmap tailored to Gulf families.