India's Finance Minister, has given salaried employees a wonderful gift of increased salaries, in the seventh pay commission. According to recent study , most of the employees are willing to invest in real estate, which is a good news for the real estate industry looking for some respite after long mute. A rough estimate is about 40 percent of the employees are willing to invest the benefits into real estate and only about 15 percent are willing to save for future and not willing to take risk.
Interestingly younger generation is considered to be boosting real estate market, but now scenario is quite different now people closer to retirement age are more inclined to invest in property. About 78 percent of the officials have shown interest in realty, to become major driving factor of the property market. In this number metro cities are playing major role as officials in these cities are more inclined to investment. Contrary to this younger officials are more inclined to other necessities and lesser interested in investing in property as they have there own wishlist like travelling, electronic gadgets, etc.
Emerging locations especially the periphery areas are being more preferred to the areas in the heart of the cities, reason being price is high in cities and future scope of gain is least. Emerging areas are affordable and appreciation is always size able only in these areas .
Most of the officials are of the view , that they spent most of the life in fast moving cities, without bothering about peace and running just for survival and making money, but post retirement they are planning peaceful life with green surroundings and lesser noise and about 70 percent of the people above 45 years of age are looking for peaceful areas outside the city with lesser prices.
Interestingly financial schemes are considered lesser attractive and put to number two position with 34 percent people willing to invest, but real estate market should be happy about the thing most of the employees don't have their own house and their sentiments will push them to buy a new house for themselves and hence 7th pay commission will prove a major boost to real estate market in India.