According to one of the global property consultants’ research report, the super-rich Indians are investing hugely half their assets in the real estate. The study also revealed that while the global average is just 24 percent but in the country it is 44 percent.
One of the affluent says that most of the super-rich Indians hold their huge percentage of their wealth in real estate as they think that the price will never reduce. He also added that the property is a wise investment decision as it is always used as indemnity in securing loans.
The study also showed that the regional differences in the form of real estate investment and the south tops with 80 percent while the east follows it with 60 percent and the west with 40 percent. Multimillionaires generally chose to invest in various branded and designer households in both India and abroad. The data from the research shows that the wealthy NRI’s own 20 percent of the luxury residence and property in the country.
For the last few years, the real estate investment is more than a vogue and the industry has been in a nosedive, which is likely to turn around soon. It is also witnessed that nearly two-thirds of the super-rich Indians desire to expand their property investments in 2014. The high returns enjoyed by the asset class and encouraging ownership are what driving buyers’ interest.
On the other hand, there is no ideal investment and the amount of property preferences is determined on a number of aspects such as the wealth level, the period of holding the property and good appreciation in value or ROI.
A global real estate consultancy says that the luxury residential market with designed interiors and exteriors, integrated management of facilities in cities like Mumbai is developing at a moderate pace of 5-6 per cent. These homes have high demand from buyers particularly who stayed in abroad who have plans to settle down in the country and want to live in such homes.
Another pattern observed in the real estate market is people who own land and do not want to sell their land directly. As an alternative, they are teaming up with the builder in order to double their investment on land and infrastructure for higher returns. One more trend perceived in the market is instead of buying property directly they are funding the builders.
Conversely, the Indian real estate market is less rough in comparison with other markets around the world where in some countries the government intruded to restrict the increasing prices and that include countries like Hong Kong, China, and Singapore while in 2013 property prices in Bali and Jakarta increased by 22 per cent and 37 per cent correspondingly.
With the new government occupying the center, the real estate players expect some realistic measures in policy changes and development that will transparency and revive the market.