HNIs get back to real estate again

High net worth individuals (HNIs) are again flocking to the market. They are deftly booking houses ahead of any further increase in prices of residential units. Currently, financial investors constitute around 30 per cent of the sale in residential units, even though it has not reached the peak level of 2007.


According to industry estimates, almost 70 per cent of the newly-launched projects in 2007 were bought by investors and remaining 30 per cent by the end-users.

Anuj Puri, Chairman and Country head, Jones Lang LaSalle Meghraj said, “Investors are typically putting in money in projects where prices are lower than the peak level.” However, he added that investor participation is unlikely to touch the boom period of 2007-08 fiscal. Typically, investors, comprising HNIs, flock the housing market keeping a 6-12 month return in mind, whereas an end-user’s demand is a function of job security and affordability.