Survey indicates real estate as top investment choice, gold least preferred

Real estate has solidified its position as the top choice for investors, while gold finds itself at the bottom of the list, as per the Anarock Consumer Sentiment survey for the first half of 2023.

The survey results indicate a significant preference for real estate, with more than 60% of respondents expressing their favour, marking a 3% increase from the previous survey. In stark contrast, gold's appeal continues to dwindle, with a mere 5% of participants considering it their investment of choice. This shift in sentiment coincides with the resurgence of Fixed Deposits (FDs) as an attractive investment avenue due to rising interest rates.

Furthermore, the stability of home loan rates, averaging around 9.15%, has upheld the positive sentiment surrounding real estate. However, nearly 98% of those surveyed expressed concerns that any breach beyond 9.5% could significantly impact their home-buying decisions.

The survey also sheds light on the financial strain faced by the majority of respondents, with over 66% reporting that high inflation has eroded their disposable incomes, up from 61% in the previous year's survey.

This trend is attributed to persistent global and local inflationary pressures stemming from the ongoing pandemic and the Russia-Ukraine conflict. While this has yet to affect housing sales, any further inflationary spikes may hinder residential sales growth.

The survey underscores the dominance of end-users in the housing market, with 67% of respondents planning to purchase properties for their own use, seeking security in an uncertain economic landscape. Moreover, 52% of millennials and 35% of Gen-X respondents intend to utilize their investment gains from other asset classes to invest in homes in the future.

Despite the recent uptick in property prices and interest rates, the survey reveals that 59% of homebuyers still favour mid-range and premium homes in the price range of ₹45 lakh to ₹1.5 crore. The survey indicates a 10% increase in sentiment for homes in this budget category since 2020. Among these options, homes priced between ₹45-90 lakh are the most preferred, chosen by 35% of respondents, closely followed by 24% favouring homes priced between ₹90 lakh to ₹1.5 crore.