Why are Indian women actively investing in real estate?

Until not so long ago, an Indian landowner was considered an anomaly. Societal expectations, wage inequalities and lack of financial knowledge have prevented them from taking up investing. This is no longer the case.

sahil Vasudev, an independent real estate agent and consultant, says Indian women, especially millennials, now understand the profitability of real estate assets. Referring to a survey published earlier this year, he notes: “Nearly 70% of women prefer residential real estate investments to other assets, such as gold.

They want to actively engage in asset creation and take the boldest path to get there.


The demand for bigger houses is increasing

Most millennial women are willing to spend between Rs 45 lakh and Rs 1.5 crore to buy a house. “There is a high demand for 2 and 3-BHK apartments, and most of these investments are for personal use,” shares Vasudev. In addition, they are looking for homes that are ready to move into (RTMI). “Some are even open to buying a house in the luxury real estate sector, in order to turn it into a vacation home for themselves. Others, especially those who want RTMI homes, are looking to rent the property,” he adds.

Tax advantages and favorable interest rates

Arjun Dedaniaco-founder of a real estate consulting firm, believes that the Pradhan Mantri awas Yojana (PMAY) has made it more convenient for women to invest in real estate. He notes that this is a credit-linked subsidy program, through which women receive special benefits in terms of interest rates on mortgages and income tax. He adds: “Under the PMAY, women can apply for a 6.5% subsidy on mortgage interest rates and enjoy exemption from stamp duty and additional registration fees.

Participation in financial decisions

Indian women and families, in general, are now moving away from the idea that men are the sole financial decision-makers in a household. It was liberating, to say the least.

Vasudev tells us: “Previously, women were told to keep house accounts, but many were not allowed to have an opinion on this. They didn’t even know enough to have an opinion. Now, with access to resources and the help of their partners who have had the privilege of learning this from older generations, women are active financial decision makers. In fact, he mentions: “In many households, men and women invest 50-50 in residential real estate, as both parties are now the breadwinners.

good feedback

Siddhi Thorat, a corporate lawyer, has recently started exploring residential real estate investments. “I’m looking for properties in developing areas of Mumbai that fit my budget, which is between Rs 40 lakh and Rs 1 crore, and have a promising future,” she says. She is motivated by the potential for good returns and the possibility of creating a second income. Thorat adds: “I want to diversify my portfolio and strengthen my financial independence. By investing in real estate, I create a reliable source of passive income.

According to her, all women must prioritize their financial health and not depend solely on their full-time job. It was the pandemic that made him realize how fragile jobs can be and how essential it is to create your own safety net.

If many women take the plunge and invest, some are still hesitant. For instance, Shruti Gulati (name changed on request), a public relations officer, is still skeptical of real estate investing as she believes returns are slow and liquidity can be an issue. With growing financial power, the appetite of Indian women to expand their sources of income has also increased.

Residential real estate investment is the top priority due to its reliability, and now some are considering commercial real estate investments as well. One thing is clear: the diversification of financial assets is now a top priority for women.


TimesProperty