New Middle Class drives real estate investments

The emerging new middle class with rising disposable income is boosting real estate investments , in turn, driving real estate growth.

According to the latest Harun India Wealth Report 2020, the rising new middle class has an average savings of Rs 20 lakh per annum. This new category of middle class is a class apart from the average middle class that has earnings of over Rs 2.5 lakh per annum. The high income emerging new middle class is allocating most of its disposable income towards physical assets like real estate. Most of these investments in real estate flow in residential real estate and that too in the primary residential market. The report puts the number of such cumulative millionaire  households at 633000. Over 70 percent of these millionaire households fall in top 10 states with Maharashtra having the highest number of 56000 such homes, followed by Uttar Pradesh with 36000 homes. City wise, Mumbai has the highest number of 16933 such households while Delhi NCR follows closely with 16000 homes.

Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group and Chairman, Assocham National Council on Real Estate, Housing and Urban Development, “The rise in number of households with higher disposable income is a good sign. Especially when this new category of better placed middle class is preferring to invest its disposable income in residential real estate. In the backdrop of  residential market turning end-user driven and  supporting government policies making residential realty more affordable , this new middle class with higher income , will help boost real estate”.

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