Indian real estate is still an attractive “hot potato” which remains a popular investment, a leading trade body has said.
A study by the Associated Chambers of Commerce and Industry of India (Assocham) shows three quarters of the country’s urban working class still prefer bricks and mortar to other forms of speculation.
The group surveyed more than 1,400 mid-level workers including managers, teachers, and self-employed professionals, and found most thought real estate was still safe despite a current slump in the sector.
“About 65 per cent of the urban working class remain keen to park their surpluses in buying residential properties in view of better connectivity, infrastructure and basic facilities.”
Most of the workers who tend to buy investment property are looking to smaller and emerging cities like Jaipur and Pune, the figures also show.
Opportunities in bigger cities like Mumbai, Delhi and Kolkata tend to attract higher-end professionals, while some buyers go for more commercial projects in the belief they are more likely to increase in value in two to three years’ time.
Analysts have previously said a greater interest in cheaper housing will see a revival of the country’s real estate market over the next few years.