Affluent Indians on average invest about 44of their wealth on properties, much higher than global average of 24 percent, according to research by Knight Frank.

“Many wealthy Indians hold a large proportion of their wealth in real estate as there is a belief that the price will never go down,” Balamurugan, co-founder and director of Metis Family Office Services, told the Chennai-based The Hindu Business Line.

Ultra high net worth (UHNW) Indians in the southern part of the sub-continent tend to spend even higher on properties, with as much as 80 percent of their wealth allocated to purchasing homes, compared to 60 percent in the east and 40 percent in the western regions.

“The high historical returns enjoyed by the asset class and ownership motivation are aiding buyer interest,” Samanthak Das, chief economist at Knight Frank, said.

Many of the billionaires own multiple homes in various parts of the country and abroad. Wealthy non-resident Indians, meanwhile, have a 20 percent share in India’s real estate market, according to JLL India.

Although nearly two-thirds of the UNHW Indian population intends to invest in more properties this year, some experts predict that investments will “likely drop” in the coming years as many top-tier local markets, including Mumbai, Chennai and Delhi, experience a slump.

Anuj Puri, JLL India’s chairman and country head, told The Hindu Business Line that the country’s real estate market has a somber outlook, with the exception of Bangalore’s emerging luxury segment.

The reception of branded and designer residences has also been lukewarm, with only a 5 to 6 percent growth rate since their introduction a few years ago.

Via Property Report