Real estate became the most preferred investment asset class for high-net-worth individuals in India. In the future, their investment in real estate is expected to continue growing at rates close to 30%. This is according to data provided by the Hurun Luxury Consumer Survey 2019.
As per the survey conducted by Hurun Research Institute, 28.6% of the high-net-worth respondents said that they are investing in real estate.
The survey has been answered by 831 rich Indians from the Hurun India Real Estate List and Hurun Indian Women list. The average age of the survey respondents is 35 years, with males and females accounting for 58% and 42% of the respondents, respectively.
This is the first time that Hurun Report is publishing this information in India with the primary goal of understanding the changing pattern and preferences of lifestyle, consumption habits of high-net-worth individuals in the country.
In addition to real estate investing, 19.1% of the individuals surveyed answered that gold is their most preferred investment asset class. Stocks came in the third position, with 17.1% of the respondents claiming it to be their favorite investment tool.
Other investment asset classes include fixed income, deposit, fund, insurance, art, commodities, and currency, among others.
Around 31% of the survey respondents explained that they would increase their investment allocation to Real Estate in the next three years. This is in line with the prediction of economic growth made by the International Monetary Fund (IMF).
Future investments to increase in the next three years include Stocks and Fixed Income, with 26% each of them. Cryptocurrencies came in the fourth position with an increase of 9.6% in the next three years.
It is worth pointing out that India has been very aggressive in terms of crypto regulation in the country. Many companies located in the nation have already left India or stopped operating due to the restrictive regulatory environment.
Anas Rahman Junaid, MD and chief researcher of Hurun Report India, explained:
“Increase in opulence and the rising millennial population in the country, investment into luxury products and service would witness an upward trend.”
He went on saying that if India’s GDP doubles in the next four years, this would have a direct impact on the number of new millionaires in the country. If that happens, luxury spending and investments are expected to increase as well.
HNW individuals in India continue to grow, and their influence in the market is reflected in the investment assets they invest in. Real estate and stocks are expected to be the main benefited in the next three years.