Women emerge as the driving force in changing the face of real estate investing

Indian women today have undergone a metamorphosis in terms of financial independence. Women today are choosing to pursue higher education and jobs to become self-sufficient, leading to a wave of empowerment and a paradigm shift in decision-making patterns. The Indian woman today is perfectly capable of juggling both family and career, and consider homeownership de rigueur in this transformation process. Owning a home has moved on from being a byproduct of marriage, to a milestone that can be achieved without it—and is rather seen as a security anchor for women.

Now, these preferences have been the silent driving forces causing distinct shifts in investment preferences as well – from gold and fixed deposits, women are actively seeking investment opportunities across sectors to secure their future independently. A survey by ANAROCK has revealed that 62% of Indian women consider real estate as the preferred asset class for investment. The gender disparity that earlier mirrored the gap in stock market investing is slowly narrowing, as women become active agents in securing their future by creating their own assets and widening the horizons of their investment options. Women have channeled their inherent affinity for homes into smart home-buying methods and expanding their growth trajectory. The lack of representation in the real estate market is slowly reducing due to several factors.

As the Indian family demographic changes with more women moving to cities in search of better job opportunities, it has also led to a systemic shift in the way women perceive financial independence, besides decisions related to personal finance. Living alone, earning on par with male counterparts in several male-dominated industries has empowered women to look beyond traditional investment opportunities. This positive shift as a strong trend is a byproduct of enhanced financial stability, independence, access to quality education, and the changing mindsets of modern women.

Developers are keenly wired into this dynamic and often actively gear their promotions towards women. The government and banking system are also going the extra mile to encourage women to invest in real estate projects. Developers also announce lucrative discounts and offers to generate interest among women to boost sales. Many banks and home financing institutions also offer alternative schemes to benefit women investors with flexi-payment schemes. Similarly, women investors also get tax benefits and are eligible for a tax deduction subject to a limit in the case of self-occupied property. They are also eligible along with their spouses for income tax deductions in the case of co-owned properties. Women across urban India are buying properties either to diversify their investment portfolios or to avail multiple benefits exclusive to women, which range from tax benefits to reduced interest rates by some banks and also reduced stamp duty and registration charges across different states.

Within real-estate, commercial realty as an asset class has a high lock-in period and remained inaccessible to retail investors owing to factors such as high ticket prices, illiquid long-term investments besides difficulties related to administering and managing large assets. Moreover, heavy jargon associated with real-estate was one of the key inhibitors that kept women on the periphery of investment decisions in real estate. Additionally, today, women are juggling additional responsibilities—from home, career and family, and may not have the bandwidth to partake in the extensive research required before taking such decisions.

Innovation and technology-backed real-estate platforms have transformed the very concept of evaluation of investment decisions in the real-estate sector. Regulatory compliances and operational due diligence which are the most tedious yet critical part of investment decision-making in real estate have been completely absorbed by these platforms. Reviewing documentation for property and portfolios, validating insurance, adhering to compliance obligations, evaluating the credibility of the tenant in case of commercial properties are some of the important tasks that due diligence entails but they are extremely critical as they help investors in identifying and quantifying areas of risk before taking the plunge.

Now a typical working urban woman strives hard to strike a fine balance between home and work. Therefore, despite having a penchant for getting into the nitty-gritty of financial planning, investments, and evaluations themselves, they simply shift the responsibility to male members of the family or would rather prefer to not indulge in investing at all. This is witnessing a sea change, thanks to the rise of new-age, real estate tech platforms.

Powered by data, new age, asset-led technological platforms like REITS (Real Estate Investment Trusts) and ‘fractional ownership’ enable investing at affordable thresholds besides offering end-to-end services. For instance in the case of fractional ownership, right from curating the best properties with attractive returns, a transparent investment process, access to detailed reporting and fair pricing, and comprehensive value-added services across the life cycle of the asset ‘investment decision making’ is served on a platter. This works really well especially for women investors and has been one of the key reasons fueling their increased participation in recent years.

Additionally, they also enable investors to undertake portfolio diversification across assets besides earning passive income from monthly rental yields. One can even track portfolio performance and get regular updates and can consider a seamless profitable exit while availing multiple liquidity options.

For women, family has always remained the top priority therefore even when it comes to making investment decisions they tend to be skewed towards causes that matter most to their family. But gradually women are now also eyeing financial wellness as a priority. Investing in real estate offers women the perfect opportunity to own their own assets, create a source for passive income while also building wealth for their family.

(The writer is co-founder, Strata, a fractional real estate investment platform. Views expressed are personal)