Real Estate Popular Investment Asset
Feb 07, 2019 Real Estate News
The individual wealth of the Indian population is growing and so is the buying capacity. Safe to say more people are now looking for areas to invest their money for better returns in future. Not only mutual funds and fixed deposits but also REITs and real estate are the preferred areas of investment now.
According to the India Wealth Report 2018 released by Karvy Private Wealth, the financial year ’18 say the 14 percent rise in individual wealth with it standing at Rs 392 lakh crore against the financial year ’17 where the individual wealth was Rs 344 lakh crore. The report suggests that the financial asset contributes to Rs 236 lakh crore while the physical asset amounts to Rs 156 crore in FY ’18.
The report also suggests that if the individual wealth keeps increasing at the same rate, then by the financial year ’23 the country will have surpassed the individual wealth to Rs 736 lakh crore.
Among the other investment areas like gold, bonds, insurance, mutual funds etc., real estate contributed to a total of 10.35 percent. Real estate has been the only physical asset class that was the highest achiever in the investment category. While the report also suggests that other areas are gaining popularity too and the investment in other areas are increasing, it is safe to say that people still consider real estate as their safe investment option and are willing to make the investments in the class.
According to the report, the financial assets are expected to rise at CAGR of 16.99 percent for the next five years whereas the rise for the physical assets will be around 9.34 percent CAGR.
It is expected in next five years, i.e., by financial year ’23 the share of the physical asset will reduce from 39.78 percent to 32.022 percent whereas the share of a financial asset which is expected to increase from 60.22 percent to 67.98 percent.
There is no harm in saying that people are considering investing in financial asset more for the better rewards and returns in future.
According to the India Wealth Report 2018 released by Karvy Private Wealth, the financial year ’18 say the 14 percent rise in individual wealth with it standing at Rs 392 lakh crore against the financial year ’17 where the individual wealth was Rs 344 lakh crore. The report suggests that the financial asset contributes to Rs 236 lakh crore while the physical asset amounts to Rs 156 crore in FY ’18.
The report also suggests that if the individual wealth keeps increasing at the same rate, then by the financial year ’23 the country will have surpassed the individual wealth to Rs 736 lakh crore.
Among the other investment areas like gold, bonds, insurance, mutual funds etc., real estate contributed to a total of 10.35 percent. Real estate has been the only physical asset class that was the highest achiever in the investment category. While the report also suggests that other areas are gaining popularity too and the investment in other areas are increasing, it is safe to say that people still consider real estate as their safe investment option and are willing to make the investments in the class.
According to the report, the financial assets are expected to rise at CAGR of 16.99 percent for the next five years whereas the rise for the physical assets will be around 9.34 percent CAGR.
It is expected in next five years, i.e., by financial year ’23 the share of the physical asset will reduce from 39.78 percent to 32.022 percent whereas the share of a financial asset which is expected to increase from 60.22 percent to 67.98 percent.
There is no harm in saying that people are considering investing in financial asset more for the better rewards and returns in future.
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