Last year’s trend of HNIs shifting to real estate investment, has gained momentum amidst Corona-led stock market turmoil.
An India survey by Harun Research Institute had found real estate was most preferred by HNIs over the next 3 years. In this survey, about one-third of HNIs said despite the slowdown, they would increase their realty allocation. Against 31% HNIs preferring real estate investment, only 17% opted for the stock market, 19% for gold and 7% for deposits. Early last year this trend was just the reverse. A Knight Frank survey in Q1 2019 found that 30% of HNis preferred equities to 24% opting for the property. Now, following the upheaval caused by COVID, HNIs, according to market reports are veering towards realty in greater numbers.
Founder, and Chairman, Signature Global Group, Chairman, National Council on Real Estate, Housing and Urban Development- ASSOCHAM, Pradeep Aggarwal says, “Compared to the equity market, real estate has low volatility. It has high competitive risk-adjustment returns. Over the past five years, commercial real estate has given an attractive return of 9.85%. Keeping this in mind, it’s logical for HNIs to turn to real estate investment in the times of market crash.