PM's Push for Lower Gold Consumption and Work-From-Home Could Boost Real Estate Demand

Prime Minister Narendra Modi’s appeal to citizens to reduce gold purchases and adopt fuel-saving practices such as work-from-home amid rising crude prices could have wider implications for the country's investment landscape. Industry experts say it may accelerate interest in real estate as a stable long-term asset class.

The PM's remarks come at a time when elevated global crude prices are increasing pressure on India’s import bill and foreign exchange reserves, particularly in the context of the Iran war. Policymakers are advocating more prudent consumption habits.

Real estate emerges as an alternative safe-haven asset. The government’s push to discourage gold buying may strengthen the appeal of real estate among investors seeking tangible and appreciating assets, say experts. Indian households have traditionally viewed gold as a store of value, but over the last few years, regulated real estate has increasingly emerged as a more structured and wealth-generating asset class.

As policymakers encourage more prudent consumption habits and reduced dependence on traditional investment avenues such as gold, regulated real estate is emerging as a stable, long-term, and wealth-generating asset class. Vivek Singhal, CEO & Co-founder of Bengaluru-based realty firm Multigen India, noted, “Any gradual shift away from excessive gold consumption could further channel investor interest towards organised real estate, particularly in segments offering long-term value appreciation and asset security.”

India is among the world’s largest gold importers, and economists have often warned that rising bullion imports widen the current account deficit and exert pressure on the rupee, which has been hitting record lows since the Iran war broke out on February 28. With global markets volatile and inflation concerns unresolved, investors are turning to stable hard assets such as real estate, particularly in urban growth corridors and infrastructure-led micro markets, analysts say.

Industry stakeholders also see Modi’s remarks on fuel conservation and remote working as a possible trigger for renewed demand in the residential housing market. The pandemic years had reshaped housing preferences, with buyers opting for larger homes, integrated townships, and properties offering dedicated workspaces and lifestyle amenities.

“Since COVID, we have seen customers prioritising a workspace within their homes, and we believe this call from PM Modi is reinforcing that trend,” said Ashish Jerath, president of sales & marketing at Smartworld Developers. Any renewed emphasis on hybrid working or work from home could once again push demand for bigger homes, analysts said.

Singhal noted that in cities such as Bengaluru, where housing demand is closely linked to the technology and startup ecosystem, renewed emphasis on hybrid working can accelerate preference for well-connected residential communities that combine accessibility, lifestyle, and flexibility for a work-from-home culture. “Over the last few years, homebuyers have increasingly prioritised larger living spaces, dedicated work areas, integrated community infrastructure, and wellness-driven environments that support a hybrid lifestyle. This shift has already strengthened demand for organised and integrated residential developments that offer a balanced live-work ecosystem,” he said.

Developers and market analysts believe the broader macroeconomic environment may work in favour of the real estate sector over three-five years. “Real estate is increasingly being seen as a hedge against inflation and market volatility. A gradual shift of household savings from gold to home ownership could provide sustained momentum to the housing sector, particularly in the premium and mid-income segments,” a Mumbai-based real estate consultant said.

While gold is expected to retain its cultural and financial significance, analysts say changing consumption priorities and policy-led behavioural shifts could gradually increase the attractiveness of real estate as a preferred long-term investment avenue.