Real estate is the most preferred investment asset class for high net-worth individuals (HNIs) in next 3 years, followed by stock markets, according to the Hurun Indian Luxury Consumer Survey. This is despite the slowdown in real estate witnessed over the last three years, and turbulence in stock markets over the past 18 months. This is the first year of an India survey by Hurun Research Institute, which aims to track changes and preferences of lifestyle, consumption habits and brand cognition of HNIs.
Around 31 per cent respondents believe that their investment allocation towards real estate sector will grow in the next two years. In line with IMF’s prediction of economic growth, equity markets followed by fixed income is the second and third choice, respectively. Interestingly, 21 per cent respondents want to reduce allocation to real estate in the short term, and around 20 per cent want to reduce exposure to gold. While 9.5 per cent said investments into real estate will be at a status quo, the remainder believed that it would decline.
The UK is the most popular investment destination for HNIs. Singapore takes second place, and Canada along with the US, which is forecast to grow 2-4 per cent (at constant exchange rates this year), rank third. Nearly a fourth (24 per cent) are “very confident” about the Indian economy over the next three years, 40 per cent “confident”, while around 36 per cent are pessimistic. As many as 36 per cent of HNIs said their investment philosophy for this year would be “avoiding risk”, while only 14 per cent will make “active investments”.
Among collectibles, HNIs prefer to spend the most on art and jewellery. Nearly half the respondents have two to three cars, 37 per cent have only one car and 6 per cent have more than five cars. Up to 46 per cent of them renew their car every three to four years.
