Gauri Tandle, Chief Financial Officer, Ashwin Sheth Group
In recent decades, across every field of endeavour and every sector of the economy, women have taken their rightful seat at the table. A survey conducted by Anarock last year revealed that an overwhelming majority of women – as high as 65% – preferred real estate to other investment options such as the stock market, gold or fixed deposits. This is borne out by our own experiences at Ashwin Sheth Group, which comprises over 30% female home buyers. As female property buyers gain greater prominence in the real estate landscape, the factors driving this transformative paradigm bear closer examination.
Understanding the contours of women’s real estate investments
Despite challenges in achieving financial stability, due to the gender pay gap, comparatively lesser access to resources and professional opportunities, and other socio-economic factors, the modern woman increasingly prioritizes financial independence and home ownership as a key milestone in the achievement of this goal. Increased financial literacy among women further bolsters this trend, empowering them with the knowledge and the confidence to invest in real estate.
Women demonstrate a preference for ready-to-move-in properties situated in prime locations in proximity to their workplaces, and that fulfil their need for safety and comfort. Women homebuyers with a family however prefer larger homes that cater to the needs of every family member, are well-connected to the city, and provide essential infrastructure facilities. It has been observed that women homebuyers tend to focus on practicality over frills while evaluating the features and amenities of residential properties.
Budget is a key consideration for women while making real estate investments, with 36% preferring to invest in the affordable housing segment priced between INR 45-90 lakh. 27% of women preferred premium homes (priced between INR 90 lakh-1.5 Cr) and 20% preferred luxury homes (priced over INR 1.5 Cr) – with the lowest preference for affordable homes priced below INR 45 lakh. These findings by Anarock highlight the aspirational element that is becoming evident in women’s real estate investments.
Moreover, while the majority of women invest in real estate from a home ownership perspective, there is an upward swing in property purchases from an investment standpoint. The ratio of women buying properties for end-use as compared to investment stands at 77:23, as opposed to 82:18 earlier, emphasizing the value that women see in real estate as an asset class.
A conducive environment
In an endeavour to promote homeownership by women, governments at both the national as well as state levels have taken policy decisions to create a conducive environment for women to invest in real estate. Women property buyers benefit from lower stamp duties, with an exemption of 1-2% that varies across states, and a complete waiver in a handful of states such as Delhi, Uttar Pradesh, Punjab, Rajasthan and Haryana. Additionally, women can avail of several tax benefits on properties purchased either solely by them or jointly with their spouses.
Availability of home loans is a key driver in real estate investments, with many banks and financial institutions offering women lower interest rates of approximately 10-20 basis points and this markedly enhances the affordability of home purchases for women.
Increased female participation in the real estate sector is not restricted and the government’s flagship scheme, Pradhan Mantri Awas Yojana (PMAY), offers subsidies to women homebuyers, providing an impetus to the social and economic empowerment of women.
Towards a more equitable real estate sector
The outlook for the Indian real estate sector remains positive, and the increased participation of women in real estate investment has been a key factor in driving this robust growth. The contribution of women professionals and business leaders within the sector is equally noteworthy. Studies have shown that women realtors exhibit greater empathy for homebuyer sentiments and demonstrate a keener understanding of customer preferences, underscoring their tremendous potential to add substantial value to the sector. There is still significant progress to be made in enhancing female professional involvement in the real estate field, especially in leadership positions, to establish a genuinely inclusive workforce. As buyers, investors, professionals and leaders, women are increasingly emerging as a powerful force in real estate, as in other domains. We can expect to see women playing a greater role in charting the course for this sector towards a more prosperous and equitable future.
