Notwithstanding the massive hit from Corona pandemic, real estate continues to hold the fancy of the majority of the Indian households.
The Corona pandemic has severely hit the business and economy. It has however not seen financial assets growing at the cost of physical assets. According to a recent report by Motilal Oswal securities, Indian households continue to have low exposure to equity. As per the report, only 14% households are exposed to equity. This is the lowest in the world against the US, Spain, Canada & China having 45.5%, 42.0%, 37.9% and 28.8% exposure respectively. All India Debt & Investment Survey reveals that average households hold three fourth of their total assets in real estate/housing.About 11% exposure is towards gold.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group & Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” Compared to the highly volatile equity market, real estate is quite stable. Property prices have been stagnant for long and interest rates are at historic low. This together with zero GST on RTM homes and just 1% on affordable homes plus developer discounts are good incentives for investing in residential realty.