Real Estate Trumps Gold as Preferred Investment Asset among Indian Investors

Investors have various types of assets to invest their money in, such as real estate, gold, fixed deposits and stocks. At one point in time, gold was a very popular investment asset. However, this place is now being taken over by real estate. More and more investors are starting to put their money into real estate as this sector has been displaying promising growth. According to a report, while 35% of the investors choose to invest in real estate, 28% prefer gold, 22% invest in fixed deposits while only 16% would invest in stocks.

One of the reasons behind this is the factor of stability. Income from real estate is relatively more stable as there are always people seeking rental accommodation, and with rising population, the need for homes is also growing. Stocks, on the other hand, are highly volatile. Especially as a result of the pandemic, markets have taken a nosedive, causing severe losses to many investors in the stock market. This has led to many investors shifting to the real estate sector in order to benefit from the income stability & have a sustained wealth-generating source in their hands.

The pandemic is also expected to spur a flurry of home sales. Many people who earlier used to live in rented homes now realise the need for their own home for the sake of health and safety. About 73% of the people who purchased homes in April and May this year are first-time homebuyers. A majority of this 73% are between 25 years and 45 years of age, which is similar to the age bracket of the people who had migrated to metro cities for employment opportunities. NRIs are also starting to buy homes in India as they feel the need to own a home back in their own country.

While a majority of the home buyers prefer homes that are either ready to move or would be within 6 months, some are also amenable to buying homes that would be completed within a year. This shows that most homebuyers are desperate to have their own property quickly. The post-COVID era is expected to bring up a scenario in the real estate market very difficult from the one earlier. The demand for homes in integrated townships or larger projects with office spaces, retail stores and more common amenities are expected to rise. It would be a good area for developers to explore as the home sales would increase and for investors as a number of localities are starting to emerge as profitable for investing in real estate.