Dhanteras, the first day of the festive period of Diwali, is considered an auspicious occasion not only to buy gold but also real estate which continues to be the most preferred asset class for investment for over 59% investors.
A new survey by FICCI-Anarock shows that real estate as the best asset class option has seen a 2% jump compared to the previous survey. Over 59% respondents now consider real estate as the best investment option, followed by the stock market which is favoured by 31% in the current situation.
The Homebuyer Sentiment Survey points out that in contrast, preference for gold witnessed a meagre decline, although ranking at the bottom of respondentsโ investment options despite the surging gold rates. Currently, only 5% respondents view gold as their preferred choice for investment, it said.
Notably, sentiments towards the stock market have experienced a positive boost in the wake of Sensex and Nifty touching their new peak in 2024. Over the past two years, the stock market as an asset class has witnessed a noteworthy surge in preference among respondents, with 30% of them now favouring the stock market, it said.
Also Read: Real estate most preferred asset class for investment for over 59% Indians, over 67% people buy property for self-use
As many as 66% millennials and 41% Gen X intend to use their investment gains to buy real estate
The survey noted that real estate has become a pivotal asset class within the portfolios of many investors, serving as a critical mechanism for portfolio diversification. It noted 39% of respondents actively diversifying their investments are increasingly gravitating toward real estate. As they realize capital gains from various financial instruments, the prospect of acquiring property presents an attractive avenue for long-term stability and appreciation, the survey showed.
Also Read: About 53% home buyers unhappy with affordable housing options, identify project location as a major deterrent
The second most prevalent motivation for investment, indicated by 26% of participants, is the strategic intention to leverage capital gains for future entrepreneurial endeavours. Following closely, 14% are focused on establishing an emergency fund, while 12% prioritize contributions to retirement savings. Additionally, 7% allocate their investment returns toward achieving aspirational travel goals.
The survey noted that 66% millennials and 41% Generation X respondents intend utilising their investment gains for purchasing real estate in the future.
Among Generation Z, 29% wish to make use of their investment gains for buying a house, as many as 28% allocate their investment returns for achieving travel goals, 39% for starting a business, 3% for retirement savings and 1% to be set aside for an emergency fund.
As many as 66% of millennials set aside their investment gains to purchase proportion, 2% for vacation, 22% for business, 8% for retirement and 2% for an emergency fund.
Among Generation X, 41% make use of their investments towards real estate, 2% for vacation, 11% for business needs, 21% for retirement and 25% for an emergency fund.
As far as baby boomers are concerned, 18% intend to use the proceeds to buy an apartment, 2% for vacation, none for business, 47% for retirement and 33% for an emergency fund, according to the survey.
The survey gathered responses from 7,615 participants across 14 cities and was conducted between January and June 2024. Cities that were part of the survey included MMR, NCR, Bengaluru, Pune, Kolkata, Chennai and Hyderabad.
Also Read: Diwali 2024: Bengaluru real estate developers gear up for new project launches; offers and discounts take a backseat
