Urban youth prefer to invest in real estate: Survey
Real estate seems to be the hottest investment instrument for urban youth in India,with a whopping 85 per cent of those surveyed inclined to put their money into immoveables on hopes of higher and guaranteed returns.
“Over 85 per cent of urban working class prefer to invest in real estate saying it is likely to fetch them guaranteed and higher returns,” says a survey conducted by industry body Assocham.
Those surveyed also said they cautiously stay off from investing in gold,stocks and mutual funds as these instruments are found to be riskier,the survey said.
A majority of urban youth surveyed believe that investing in the yellow metal is not as profitable as in real estate since they expect gold prices to fall.
Besides,global slowdown and the weak rupee have started casting a shadow on stocks,as many corporations are rationalising the salary structure of their employees with an emphasis on cost cutting which dampens the spirit of investment in the capital markets.
However,a few respondents still chose to invest in stock markets,gold and mutual funds.
The maximum concentration of real estate investments from urban working class and professionals is seen towards residential properties in emerging Tier-II and Tier-III
These include Jaipur,Bhiwadi,Rishikesh,Haridwar,Nainital,Chandigarh,Dehradun,Sonepat,Panipat,Pune and Nasik,it said.
Most respondents felt that investments in real estate,residential and commercial properties are found to be lucrative and much safer since they are completely insured in contrast to those in gold,stocks and mutual funds.
Over 62 per cent respondents,especially professionals,chose real estate properties in Tier-I cities like Mumbai,Delhi,Kolkata,entire Northern Capital Region (NCR),
Hyderabad,Bangalore,etc for gaining maximum returns.
However,78 per cent of those working professionals with double-income,who bought a house in a metro city,want to invest in their home town for a second home,the survey added.