Real Estate Continues To Be The Most Preferred Avenue For Investment And Is Followed By Stock Market

Despite all headwinds within the residential sector, real estate continues to be the first choice for investments for a majority of investors. In a recent ANAROCK-LIC survey, a whopping 59% participants preferred real estate over other asset classes such as the stock market, FDs and gold. A year ago, in the survey conducted during the same period, 53% participants had preferred real estate.

This gradual increase indicates the prevalent mood among prospective buyers who continue to repose their faith in real estate as the best investment option. “Given the volatile nature of most other asset classes, real estate is indeed a safe bet for most – proviso they remain invested for a long term. Also, property prices are at their lowest best across most cities and with the government announcing a slew of measures favouring the sector, both investors and buyers are hoping for steady growth in the future,” says Anuj Puri, chairman, ANAROCK Property Consultants.

Declining interest rates of FDs is further making investors change their preferences. From 14% respondents wishing to invest in FDs in the H2 2018 survey, merely 10% respondents now prefer to invest in it as per the H2 2019 survey. Alternately, the stock market maintains its status as the second most preferred asset class for investments, with 23% participants showing their preference for it, while only 8% participants would like to invest in gold.

The survey also reveals that there are many ‘real’ buyers who are still waiting to take the plunge into the Indian residential real estate. As such, many of these prospective homebuyers are looking to buy a home for their end-use. Meanwhile, property prices in most cities have also bottomed out while developers are going all out to offer the best deal possible. Thus, there couldn’t be a more opportune time than this to buy a property, particularly for self-use.

Taking advantage of the prevailing scenario, as many as 20% respondents decided to take the plunge into residential real estate during 2019. Going forward, altogether 63% respondents across the country are likely to take the plunge into the real estate market within the next one year.

These prospective homebuyers are definitely in for a treat because the latest ANAROCK research reveals that nearly 2.75 lakh units are likely to get completed by December 2020 across the top 7 cities. These units were launched in 2014 or afterwards. Moreover, the top cities also have overall unsold inventory of nearly 6.56 lakh units across the top 7 cities. Hence, property seekers will have ample choices across budget segments in the forthcoming year.

Meanwhile, despite stable property prices and favourable regulatory environment, the residential market still fails to lure at least 17% respondents who have postponed their home buying decisions for more than a year.