Risk is lowest in housing properties, earning can be up to 35% in 10 years. This change in the mood of the market shows that investment in real estate is again gaining momentum after the pandemic. This sector experienced a lot of setbacks in housing projects but again switched back to cater to consumer needs. Real estate has given more returns than equity and gold in the last 10 years. A similar situation is expected in the next decade as well. Therefore, buying a residential property can also prove to be very beneficial from the investment point of view during festivals.
Investing in property has always been profitable. Property remains the most preferred asset class despite the rapid rise in equity investment in recent years. A global financial services company Jefferies report says that by the end of the last financial year 2021-22, Indian households have assets worth around Rs 850 lakh crore. Of this, about half (49.4%) is invested in property alone, while 15-15% is in the form of gold and bank deposits. This means that people's trust in the property remains. However, a property like a home is not an asset class that was affected by the purchase.
As a result, Housing properties can make huge profits after a few months or even two years. But it has always given better returns in the long run. For example, before the Covid epidemic, when there was some stability in the global and Indian economies. Real estate has given better returns than equity and gold in 10 years. Investment returns were affected by the Covid epidemic last year, due to Covid in 2021, the return of construction was only 2%, but investment in gold caused a loss of 4.74%. But people of the stock started trading shares. The market gave a 21% return because the demand for houses is increasing in the houses, so the price will increase in 10 years till 2020.
Things were different before Covid. According to the Reserve Bank, in the 10 years to 2020, property prices in the top-10 cities of the country grew on an average of 11.6% annually. In comparison, the average return of equity. After 2020, the demand for premium homes doubled to 11% and that for gold to 8.8%. Investing in property for 4-5 years will yield great results. As it did in the March quarter, the housing market will continue to rise significantly throughout the rest of the year. The residential business will grow significantly in 2022, according to CBRE CMD Anshuman Magazine. Sales will increase in the next quarters, as will the number of new releases. This is due to the government's continued support for the housing industry as the economy recovers.
There is a good chance of 1 For these reasons home prices in most major cities were stable until recent years. But in the last year, the prices of houses in Tier-2 and Tier-3 cities have increased by 8-10%. The demand for houses in the country is increasing rapidly since 2020. From this month till December, the booking of houses is expected to increase by 30%. Meanwhile, the developers will increase the price to cover the increased cost. From May 6 till now, the Reserve Bank has increased rates by 1.40%. Given inflation, once again at the end of the month, the rate in repo can be increased by 0.50%. In such a situation, home loans will be expensive. Except for steel, other construction materials have become expensive. Meanwhile, the demand for residential property is increasing. Due to this, house prices are likely to increase by 8-10% in the next two years. Prices may increase by 20-35% in the next 10 years. After the epidemic, the sale of luxury houses in the country is increasing rapidly. There has also been a significant increase in the demand for mid-sized and premium range homes. The demand for such residential properties has almost doubled after 2020. Demand for all types of properties is likely to increase in the year's remaining months.
The luxury infrastructure is the future of real estate. It is anticipated that 67% of HNIs will purchase a property this year. Corona has changed not just people's lives, but also the way businesses are run. The yearning for huge, lavish residences has progressively increased since Covid. This year, the market for luxury residences may reach new heights. For CEOs of exclusive luxury houses, business families, and entrepreneurs Millions of rupees are required. According to real estate firms, Mumbai and Pune had the most sales of luxury properties in the previous four years, and this new trend will continue in 2022 among the top seven cities in the country.
According to a poll conducted by real estate consultant Anarock, the percentage of luxury homes in all home sales increased to 12 percent in the first quarter of this year from 73 percent in the same time last year. This was the largest sum in the prior three years. In addition to low borrowing rates and consistent pricing, growing demand is mostly driven by a desire to improve one's lifestyle. Luxury house sales are expanding at the quickest rates in Mumbai, Delhi, and Pune. According to a survey performed by the luxury real estate firm Sotheby's International Realty, 67% of HNIs (Very High-Income Group) want to purchase a property this year. This phenomenon is likely to prove that this is the best opportunity to invest in the real estate sector with everything that is helping the industry to move forward at an astonishing pace. Agrawal Construction Co. extends this investment opportunity and is looking forward to great profit.