Diwali-Dhanteras 2024: Real Estate Surges as Top Investment Choice for Over 59%
Over 59% of respondents now view real estate as the best investment option, followed by the stock market which is favoured by 31% in the current scenario.
Real EstateInvestmentDiwaliDhanterasFiccianarockReal EstateOct 28, 2024
The Homebuyer Sentiment Survey highlights that the preference for gold has seen a slight decline, ranking it at the bottom of investment options despite rising gold prices. Only 5% of respondents now view gold as their preferred investment. Notably, the surge in the stock market, with Sensex and Nifty touching new peaks in 2024, has positively impacted investor sentiment towards the stock market. Over the past two years, the stock market has gained significant popularity among respondents, with 30% now favoring it.
Real estate has emerged as a pivotal asset class, crucial for portfolio diversification. The survey indicates that 39% of respondents actively diversifying their investments are increasingly gravitating towards real estate. As investors realize capital gains from various financial instruments, the prospect of acquiring property is seen as an attractive avenue for long-term stability and appreciation.
The survey also delves into the motivations behind these investment choices. The second most prevalent reason, indicated by 26% of participants, is the strategic intention to leverage capital gains for future entrepreneurial endeavors. Following closely, 14% are focused on establishing an emergency fund, while 12% prioritize contributions to retirement savings. Additionally, 7% allocate their investment returns towards achieving aspirational travel goals.
Among different age groups, the survey found that 66% of millennials and 41% of Generation X intend to use their investment gains to buy real estate. For Generation Z, 29% wish to use their gains for purchasing a house, 28% for travel, 39% for starting a business, 3% for retirement savings, and 1% for an emergency fund. Millennials, in particular, set aside 66% of their investment gains for real estate, 2% for vacations, 22% for business, 8% for retirement, and 2% for an emergency fund.
Generation X respondents also show a strong inclination towards real estate, with 41% using their investments for property purchases, 2% for vacations, 11% for business needs, 21% for retirement, and 25% for an emergency fund. Baby boomers, on the other hand, have a more conservative approach, with 18% using their proceeds to buy an apartment, 2% for vacations, none for business, 47% for retirement, and 33% for an emergency fund.
The survey, conducted between January and June 2024, gathered responses from 7,615 participants across 14 major cities, including MMR, NCR, Bengaluru, Pune, Kolkata, Chennai, and Hyderabad.
Frequently Asked Questions
What is Dhanteras and why is it significant for investments?
Dhanteras is the first day of the Diwali festival and is considered an auspicious occasion for making investments, especially in gold and real estate. It is believed to bring good luck and prosperity.
What percentage of respondents prefer real estate as an investment option?
Over 59% of respondents consider real estate as the best investment option, according to the FICCI-Anarock survey.
How has the preference for the stock market changed over the past two years?
The stock market has seen a significant increase in preference among respondents, with 30% now favoring it as an investment option, up from previous surveys.
What are the motivations behind investing in real estate?
The primary motivations include long-term stability, capital appreciation, and portfolio diversification. Many investors also plan to use investment gains for entrepreneurial ventures, emergency funds, and retirement savings.
Which age group is most likely to invest in real estate?
Millennials are the most likely to invest in real estate, with 66% of them planning to use their investment gains for property purchases.
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