Real estate preferred choice for investments in India: Survey
New Delhi: The preferred asset for Indian investors is real estate sector, followed by gold and silver, a survey Friday said.
"The investment pattern in the country suggests that investment flow have been highest in the traditional modes of investments such as in real estate market followed by gold and silver," the survey of PHDCCI said.
It said that due to the uncertain economic environment and sluggish growth in financial markets, investors are pumping money towards safe and less risky investments as compared with highly volatile investment avenues such as stock market.
"The extremely high preference real estate can be attributed to the recent sharp rise in rural incomes driven by implementation of several income generating flagship programmes of the government," it said.
The survey said fixed deposits have also been an important avenue of investments.
The occupation-wise investment pattern across rural, urban and metropolitan India suggests that the investment preferences are inclined towards safer options like real estate especially among the professionals.
"...Salaried people and the agriculturists have shown very strong preferences towards gold & silver," it added.
Further, it said that there is need to alter the pattern of investment of the Indian economy.
"The government needs to promote the financial sector and increasing the size of the financial market is the need of the hour...There is an urgent need to address the problem of lack of investment in financial markets," they survey said.