In a recent report of RBI, it was revealed that bulk of family wealth in the Country, was still tied to the Realty sector. The report on house hold finances also revealed that even the poorest of the population, keeps it wealth tied to Real Estate. The report further revealed that about 76.9% of household wealth in India, is invested in Real Estate and 59% of the poorest, owned some dwelling unit in the form of land or other.
Why is the focus on investment, still on Real Estate, despite the steep fall in the markets? Is it due to the high returns that are expected, in this class of investment? Or is it because it is a lucrative avenue and first port for investments? Is it also because the returns from the property sector has been most positive? Or is it simply the ‘power’, ‘prestige’ and ‘pride’ element involved, that is driving the Indian Household towards the investment in real estate?