The upsurge in the stock market and softening of interest rates may have increased the interest of investors in real estate.

According to an online survey, 57 percent of people prefer to invest in real estate.

This survey was done by Enrock Property Consultant. It was done in the first quarter of 2019. The response of 2,797 people was taken from different income levels, age groups, and places.

The people of Bengaluru showed the highest 67 percent interest in real estate. It was followed by Tier-2 and Tier-3 cities (67 percent) and Hyderabad (64 percent).

If you bought property in the last year, what was the main attraction behind it?

Attractive Prices: 50%

Better Regulation (RERA): 22%

Low Home Loan: 20%

Other Reason: 8%

Enrock named this survey as 'Indian Residential Real Estate Consumer Sentiment Survey (H1 2019)'. The conclusions were as follows-

The Real Estate Regulation Act (RERA) proved to be a major setback for the developer. After its implementation, the sale of houses declined and property prices fell. However, the attractive prices helped the dealers clear the inventory. This increased sales in the following year. The consumer sentiment got a boost due to better regulation under RERA.

These figures are encouraging. But, we doubt whether real estate is really the best investment option. The RBI House Price Index (All India) has risen 7.3 percent (CAGR) in the five years ended 31 March 2019. In other words, if you had invested Rs 10 lakh in real estate in April 2014, the money would have increased to Rs Rs 14.5 lakh in five years.

Compare this with the returns of equity. The Nifty grew by 11.6 percent in the same period. The average multi-cap equity fund gave 14.8 percent returns during this period. In this way, if you invested Rs 10 lakh in multi-cap funds in 2014, then in five years its value would have almost doubled.

Will you buy it from the same builder?

During the same period, gold gave 4 percent returns. Enrock's study said, "Gold has become a dead asset for many investors now. At the same time, there are many people who still have a fascination with it. These are people who know less about other asset classes or those that do not reach. "

Did you buy a property for your use or investment? If you bought it as an investment, what is your plan for it?

According to Enrock, the announcement of concessions by the government, reduction in GST rates for under-construction properties and fall in property prices boosted investor morale. In spite of all the challenges for the sector, sales of houses in the top seven cities grew by 18 percent in 2018. While the new launch increased by 33 percent.

If you invested in property in the last five years, are you happy with its returns?

Yes: 62%

No: 38%

However, due to the arbitrariness of real estate developers, one in two (48%) asked not to buy property from the same builder. Only 52 percent were satisfied with their purchase.

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