5 Reasons Why Real Estate Is Indian Investors' Favourite Asset Class

Most battles in Indian mythology as well as history were fought over issues pertaining to land. However, from fiction to reality and from the history to the contemporary, land remains a favourite mode of investment among Indian home buyers. While investors in the west have graduated to other volatile asset classes, Indians' loyalty to real estate is unchallenged and unchanged. In fact, a close look at the assets of the Union ministers would show most of them have the substantial amount of their assets parked in property markets. The common man of the country is no different.

Why is that so?

They have it in themOld habits die hard and this is true of the tendency to invest in real estate markets, too. As a matter of fact, Indians have inherited it from their forefathers. Despite the invent and emergence of new asset classes, real estate investment among Indians has gone up generation after generation.

Play safePlaying it safe remains the all-encompassing undertone behind Indians tendency to prefer real estate to other asset classes. Land supply is limited and that is what makes this asset so lucrative. This is also a reason why no matter how horrible the country is as an economy, there is only so much hit property markets would take. For example, a flat in Noida that was going to cost you Rs 50 lakh two years back is not going to cost any less because property markets in the national capital region are registering a lackluster performance. As a matter of fact, it could either be stable or grow.

Any fall is temporaryLand as an asset is immovable and any slump in real estate, it is assumed, is a temporary phenomenon. Unlike other asset classes such as stocks and commodity markets, the real estate market is to a great extent volatility-proof. And, because Indian like to play it safe, they would rather stick with property markets.

Scope to growIndia's is a developing country and urban infrastructure here has yet to grow manifold for the country to utilise its full potential. This is why investing in property markets here will help investors reap higher benefits. As stakeholders of a growing economy, these investors expect to earn far more than any other asset class can promise.

Like to feel at homeIndians love having a place of their own. Almost all of them use their life savings to buy a place that they will call their own in future. No matter how convenient renting is or how beneficial investing in stocks is, a home will always be a bigger driver for any Indian who has any money to invest. This inherent tendency is the reason why all Indian investors, small and big, come to property markets to make money.

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