'Indians prefer to invest in real estate'

Subscribe to Oneindia News

New Delhi, Oct 1: Three-fourths of urban working classes, including professionals, still prefer to invest in real estate in the country in sharp contrast to the United States where housing bubble has bust, contributing to financial market meltdown, according to a study.

A survey conducted by industry chamber ASSOCHAM attribute this preference to guaranteed and higher returns on investment in the realty market as compared to stock market, gold and mutual funds. Of more than 1,400 surveyed, over 1,050 said investments in real estate, both residential and commercial, are lucrative and much safer as these investments are completely insured as against those in stocks and mutual funds. The respondents said investment in gold is not as profitable in real estate as they expect the yellow metal's price rise only upto a certain limit which is not the case with realty sector.

ASSOCHAM President Sajjan Jindal said about 65 per cent of urban working class remain keen to park their surpluses in buying residential properties than commercials as latter are beyond their means.

Their preferred destinations for such investments are in tier I and tier II cities like Jaipur, Bhiwadi, Rishikesh, Haridwar, Nainital, Chandigarh, Dehradun, Sonepat, Panipat, Pune, Nasik and Jaipur because of affordable and easy availability of land, the survey said.

However, over 40 per cent respondents, especially professionals, prefer tier I cities like Mumbai, Delhi, Kolkata, Delhi capital region, Hyderabad and Bangalore for gaining maximum returns, the survey added.

But 35 per cent working class and professionals, however, prefer investments in commercial properties, especially in tier I and tier II cities, saying it will get them attractive premium within one-two years.

Majority of respondents said since most corporations have started rationalising their salary structure with emphasis on cost cuttings, it has dampened their spirit for investment in capital markets, according to the survey.

Still 350 respondents favoured stock markets to park their funds as they hope the markets to bounce back in the near future, Mr Jindal said.

The survey revealed that higher gold and jewellery prices have discouraged the working class to invest in it.

UNI

Please Wait while comments are loading...