Super Rich Indians Invest Half Their Money In Real Estate

BANGALORE: The super rich Indians are investing heavily in real estate, according to a Knight Franks Research report. Where the global average is just 24 percent, it is 44 per in the country.

“Many wealthy Indians hold a large proportion of their wealth in real estate as there is a belief that the price will never go down,” said Balamurugan, Co-Founder and Director of Metis Family Office Services. He also pointed out that property has always been used as collateral in securing loans, making it a wise investment.

There are regional variations as well in the pattern of real estate investment, the south topping with 80 percent when compared to 60 percent in the east and 40 percent in the western regions. Multimillionaires opt for several designer and branded households in both in India and overseas. Statistics also shows that wealthy NRI’s own 20 percent of the luxury residence and property in the country.

Though real estate investment is more than a fad, for the last few years, the industry has been in a slump that is expected to turn around soon. Samanthak Das, Chief Economist, Knight Frank observes that nearly two-thirds of the rich Indians want to increase their property investments in 2014. He said, “The high historical returns enjoyed by the asset class and ownership motivation are aiding buyer interest.”

Nonetheless, there is no ideal investment said Bikram Sen, CEO of ArthVeda Fund Management. He remarked that the proportion of property preferences depends on a number of factors, including the wealth level, the time one plans to hold the property and return on investment.

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