Real estate top investment choice as rentals surge – The Tribune-OxBig News Network

Real estate remained the most preferred asset class for investment among 59 per cent of Indians in the first half this year, as 57 per cent of investors said they are buying premium properties to earn rental income, driven by surging rental rates in cities, according to a recent report.

About 51 per cent of respondents prefer 3 BHK units, showing increased demand for larger home, as 67 per cent of buyers seek property for end use, while 33 per cent the investment purpose, said the report by FICCI and Anarock Property Consultants. The report highlighted significant shifts in homebuyer preferences and market dynamics in India’s real estate sector.

“Investor confidence is vital for the industry’s long-term success, and SEBI’s focus on transparency and governance has been key in building this trust,” said Pramod Rao, Executive Director, SEBI. He emphasised that strong compliance and better disclosures will be crucial in attracting institutional investments.

The report found that the demand for ready homes has declined significantly. The ratio of ready homes to new launches is now 20:25, compared to 46:18 in the first half in 2020. The Rs 45-90 lakh budget remains the most popular, but there’s a shift towards premium properties. About 28 per cent now prefer homes priced between Rs 90 lakh and Rs 1.5 crore. Apartments are still the most preferred property type (58 per cent), but residential plots are gaining popularity, especially in southern cities, the report mentioned.