Nearly half of the respondents of a survey by realtors body National Real Estate Development Council (NAREDCO) said that they would prefer real estate as their major mode of investment, above stock markets or gold.
The joint survey, conducted by NAREDCO along with housing.com, also revealed greater demand for ready-to-move-in properties compared to under-construction projects.
In the survey, conducted between January - June 2023, about 48 per cent of the respondents reflected inclination towards real estate as the preferred area of investment, as opposed to the stock market (18 per cent), fixed deposits (19 per cent) and gold (15 per cent).
“Throughout history, real estate has been a cornerstone of investment. The Covid-19 pandemic has enhanced its relevance, making it the preferred choice for many,” said Dhruv Agarwala, Group CEO of housing.com, PropTiger.com and Makaan.com. The resilience displayed by the sector can be attributed to both pent-up and emerging demand, he added.
According to the survey, in light of a home loan interest rate surge of 2.5% since the past year, homebuyers are seeking tax incentives such as stamp duty and GST waivers, along with flexible payment plans, as primary motivators for home buying in the upcoming six months.
Manoj Kumar Sharma, who is a senior manager at Bank of Baroda in Guwahati, Assam, however, told DH that while residential real estate is a popular asset class amongst the younger bracket of the population, the business class prefers gold while senior citizens show greater inclination towards gold. Real estate offers high appreciation value, taxation benefits and notable rental incomes, especially in metropolitan cities, he explained.
Despite weak external cues, sales in the primary market registered a 15% yearly uptick in the first half of 2023, highlighted Ankita Sood, who heads research at Housing.com, PropTiger.com and Makaan.com.
Additional perks like modular kitchens and custom woodwork are influential factors for buyers during their decision-making process, the survey revealed, adding that personalised assistance post-property shortlisting is deemed crucial for closing deals and enhancing the overall homebuying experience.
Published 21 September 2023, 19:16 IST