Real estate continues to dominate as the most preferred form of investment over gold and stocks

A recent report by NAREDCO and Housing.com, published on September 21, has revealed that despite the soaring real estate prices and rising home loan rates, real estate assets have emerged as the preferred investment choice over gold, stocks, and fixed deposits among investors. The report sheds light on the shifting preferences of investors, disclosing that a significant 48 percent of the respondents surveyed expressed a strong inclination towards investing in real estate, making it the most favoured choice. In contrast, only about 18 percent of respondents preferred the stock market, 19 percent opted for fixed deposits, and 15 percent chose gold as their investment vehicle of choice.
One of the key takeaways from the report is the changing landscape of real estate investment, where prospective homebuyers are seeking not only financial benefits but also added incentives and flexibility. The report highlights that these investors are actively looking for tax incentives and flexible payment plans when making their investment decisions.
Tax incentives, such as stamp duty and GST waivers, have been identified as pivotal motivators for potential homebuyers in the upcoming six months. These incentives are perceived as measures to make homeownership more appealing and accessible. The prospect of reducing the financial burden through such incentives is clearly influencing investment decisions in the real estate sector.
Interestingly, despite external economic uncertainties, the property market has shown remarkable resilience, with sales in the primary market registering an impressive 15 percent year-on-year growth in the first half of 2023. This robust consumer demand is seen as a testament to the changing dynamics of the real estate sector, which has been significantly influenced by factors such as the growing importance of homeownership, the adoption of hybrid work models, and an increased focus on safety and security in the post-COVID era.
The report also delves into the preferences of homebuyers when it comes to property types. It indicates that there is a notable preference for ready-to-move-in residential properties over under-construction projects. This shift is attributed to additional perks offered by developers, such as modular kitchens and custom woodwork, which play a significant role in influencing buyers during their decision-making process.
In summary, the report paints a picture of a dynamic and evolving real estate market, where investors are choosing real estate assets over traditional investment avenues like gold, stocks, and fixed deposits. Tax incentives and flexible payment plans are driving this shift, and the property market continues to thrive despite external uncertainties, with a clear preference for ready-to-move-in properties and additional amenities. The real estate sector's resilience and adaptability appear to be shaping the investment landscape for the foreseeable future.

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Real estate continues to dominate as the most preferred form of investment over gold and stocks

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