Indians Prefer to Invest in Real Estate

Bangalore: Followed by gold and silver, Indian investors are keen to invest in real estate sector as a preferred asset. According to PHDCCI survey, "The investment pattern in the country suggests that investment flow have been highest in the traditional modes of investments such as in real estate market followed by gold and silver.”

Due to sluggish economic condition and slow financial market growth, investors are parking their investments in real estate which is less risky and safe compared to stock market investments.

"The extremely high preference real estate can be attributed to the recent sharp rise in rural incomes driven by implementation of several income generating flagship programmes of the government," said the survey.

Across rural, urban and metropolitan India, the occupation-wise investment pattern indicates that real estate is one of the most preferred investment avenues, particularly among the professionals.

"...salaried people and the agriculturists have shown very strong preferences towards gold & silver," according to the report.

Moreover, the pattern of investment needs to be changed in Indian economy, said the report.

The reports further added that "The government needs to promote the financial sector and increasing the size of the financial market is the need of the hour...There is an urgent need to address the problem of lack of investment in financial markets.”

(With PTI inputs)