Wealthy Indians are increasingly looking at land as a preferred investment avenue as volatile markets limit their options of asset classes.
About 48% of the high net worth individuals (HNIs), both in India and abroad, with investable assets ranging from 500,000 pounds to 30 million pounds (Rs 4 crore - Rs 240 crore), is looking to increase allocation to realty in the next 12 months, according to a report released by Barclays in association with the Economist Intelligence Unit.
Satya Narayan Bansal, chief executive, Barclays Wealth India, says, “This may be an indication of the confidence among investors who are looking at the current downtrend in the realty markets as an opportunity to make gains.”
Experts say these investments may go into real estate funds, stocks of companies that deal in property, as well as directly in land.
It’s not just in India that HNIs are buying. Allocation in property abroad is catching on in a big way. The UK and UAE are emerging as favourite destinations, which offer assured rentals and greater transparency.
Nipun Mehta, co-founder & CEO, Unitis Tower Wealth Advisors, says, “The trend of HNIs investing in land is more prominent in northern India than in the southern parts.
Initially, the buying was mostly in Tier I, where the property prices were perceived to be cheaper. Now it is spreading to Tier II cities also.” Property is being mostly bought in non-urban areas due to great potential for appreciation.