With the recent decline in gold prices, investors are opting to acquire this precious metal rather than investing in the real estate market.
Real Estate Losing Its Appeal?
While real estate may not have entirely lost its allure, investors are less inclined to put their money into the construction sector, primarily due to the gold price drop.
Shift Towards Gold
Jewelry shops across all cities are witnessing a surge in customers. Many people view this as an opportune moment to procure a piece of glittering gold.
Though the real estate industry hasn't experienced a significant downturn, investment from small-scale investors has decreased. These investors are now focusing their attention on gold rather than real estate.
Investors who previously favored pre-launch properties, hoping for a quick return upon project completion, are now shifting their funds to gold.
Real Estate Investment Impacts
Real estate has traditionally been viewed as a lucrative investment option, promising high returns. However, this perception is changing with the fluctuation in gold prices.
The dip in gold prices is regarded as transient, with experts forecasting a rapid rise. This makes gold an attractive short-term investment for those seeking quick returns. One investor revealed that he had purchased gold worth Rs.4 crore, planning to sell it once prices rise again.
Gold prices have started to rebound, rising by Rs.2000 per ten grams over the week. Despite this, real estate investment remains stable, as price corrections in the sector are unlikely.