Real estate properties have emerged as the most popular avenue for investment among the Indian investors. Due to the stability of returns, real estate has beaten even gold, which predominantly used to be a very common investment asset in India.
According to a survey, 35% of the Indian investors prefer to invest in real estate. Gold follows as the second most popular asset, with 28% Indians willing to invest in it. 22% and 16% of the Indian investors prefer to invest in fixed deposits and equity funds respectively.
In the current scenario, stick markets are highly unstable and quite risky to invest in. Real estate, on the other hand is expected to remain a stable source of income for the investors in the near future. This is because no matter how the markets perform, the demand for rental homes would remain as shelter is a fundamental need. A large number of potential homebuyers were surveyed, more than half of whom currently reside in rented residences.
NRIs are also starting to eye real estate properties as lucrative investment assets back home. This is because with the value of the Indian Rupee falling, properties in India are becoming relatively cheaper for them. Many of the NRIs are buying homes in India as a security measure so that they can have a residence of their own when they return to India. Until then, they would use the home to earn rental income.
Homes being unaffordable is quite a common perception among potential homebuyers, as a result of which many prefer to just live in rental accommodation. This makes real estate properties profitable for investors. With the job losses caused by the COVID-19 pandemic, many are looking for reliable investment avenues to ensure a stable source of income. Real estate happens to be one of the least volatile among all the main investment assets.
A number of changes are emerging in the trend of demand among the homebuyers. Due to the work from home trend which is gaining prominence quickly, more and more homebuyers are looking for residential complexes with business centres and other commercial amenities. Ready to move homes were always high in demand compared to under-construction ones, but this trend has now been intensified further. About 60% of the homebuyers who were surveyed said that they would wait for 6 months at most to gain possession of the property while 21% is fine with waiting up to a year. The real estate sector is undergoing a number of trends and is expected to have a bright future ahead.