High Net Worth Individuals of India Invest Half of their Wealth in Real Estate

High Net Worth Individuals of India Invest Half of their Wealth in Real EstateReal Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

This quote by Franklin D. Roosevelt precisely explains the importance of real estate as a lucrative investment option. According to the Knight Frank Wealth Report 2015, the ultra rich individuals of India invest half of their income in real estate. This is by far the highest figure across the globe, followed by Australians with an allocation of 42% of their net wealth in realty sector.

The real estate market of India has been developing at a rapid pace. The property values in metro cities has witnessed considerable appreciation in the last five years. Seeing the trend, High Net Worth Individuals (HNIs) prefer to buy a second home than investing in stock or bonds. More than 85% of the ultra rich individuals are contemplating over increasing their investment allocation in luxury residential property as the category is fastest growing. Putting their money into commercial property is also fetching them fruitful returns.

Other articles they invest in include antiques and artworks, jewellery and branded watches. The second favorite investment field of HNIs after real estate is classic cars. Coins and chinese ceramics were also noted among the articles that received good investment allocation. Some of the individuals also use their money to buy private jets and use them for the purpose of leisure and business.

Of all the above, real estate is the safest investment, thus attracting the attention of the ultra rich individuals. Offering long term capital growth, positive cash flow and continuous value addition, real estate is a lucrative option, not only for the ultra rich but also for middle class individuals.