What Is Driving Increasing Female Participation In Real Estate Investments?

Historically, real estate investment has been perceived as a predominantly male pursuit, but recent years have witnessed a significant increase in female interest and involvement in this sector. In India, women are increasingly stepping into property investment with notable confidence and determination. This trend reflects not only changing societal dynamics but also the evolving economic landscape of the country.

What Is Driving Increasing Female Participation In Real Estate Investments?

The real estate sector in India stands as a formidable force, emerging as the nation’s second-largest employer. Projections indicate that by 2030, the market size will skyrocket to a staggering $1 trillion, contributing substantially to the country’s GDP, estimated at around 18-20%. With the rapid urbanization and economic growth witnessed in recent decades, property investment has become increasingly attractive to individuals seeking wealth accumulation and asset diversification. 

Traditionally, real estate investment has been associated with patriarchal structures, with men often taking the lead in property transactions and portfolio management. However, the narrative is gradually changing as more women are stepping into the arena of real estate investment, challenging stereotypes and reshaping industry dynamics. As women exert a growing influence in real estate, it is anticipated that their participation will further catalyze the sector's overall growth trajectory.

Data from the Credit Information Bureau of India Limited (CIBIL) highlights a remarkable trend: women borrowers are poised for substantial expansion, with an anticipated Compound Annual Growth Rate (CAGR) of 19% over the next five years. This surge reflects a broader societal shift, wherein women are asserting greater financial independence and adopting more assertive investment strategies.

However, despite these encouraging statistics, a significant gap persists in financial autonomy among women. A survey conducted by Tata AIA reveals that a significant portion of working women, approximately 59%, still rely on their spouses for financial planning. Globally, according to the McKinsey Global Institute, women hold a mere 13% of real estate assets, indicative of a systemic disparity in ownership and investment opportunities.

As women increasingly participate in real estate investment, their influence extends beyond mere economic transactions. They are reshaping the landscape, bringing diverse perspectives and priorities to the forefront. Moreover, their presence in the market fosters a more inclusive and equitable environment, enriching the industry's dynamics and driving innovation.

Trends in Female Investment Preferences and Financial Empowerment

Women today are more financially independent and empowered than ever before. With higher education levels and increased participation in the workforce, they have greater control over their financial destinies. Real estate investment presents an avenue for women to build wealth, secure their financial futures, and achieve long-term financial goals. 

Real estate offers women an opportunity to diversify their investment portfolios beyond traditional avenues such as stocks and bonds. Property investment provides a tangible asset that can generate rental income and appreciate in value over time, thus serving as a hedge against inflation and market volatility. 

Real estate is often perceived as a stable and secure investment option, particularly in the context of the Indian market. With fluctuations in other investment instruments, such as equities and mutual funds, real estate offers a sense of stability and predictability, making it an attractive choice for women looking to secure their financial futures and that of their families.

A survey by Anarock indicates that an increasing number of women are turning to real estate as their investment vehicle of choice. Notably, 65% of Indian women homebuyers now express a preference for real estate investment over traditional options like the stock market, signalling a shift in investment behaviour. 

Delving deeper into preferences, data from the Anarock survey highlights a distinct inclination towards the affordable housing segment among Indian women investors. The majority gravitate towards properties priced between Rs. 45 lakhs to Rs. 90 lakhs, indicating a pragmatic approach to investment aligned with financial prudence and long-term stability.

Additionally, the landscape of real estate investment is increasingly conducive to female participation. Many banks and financial institutions offer tailored concessions and incentives for women borrowers, including special discounts on home loan interest rates. This proactive approach not only incentivizes investment but also fosters inclusivity within the financial ecosystem, empowering women to take charge of their financial futures.

While the rise of women in real estate investment is undoubtedly a positive trend, challenges persist on the path to gender parity. Addressing systemic barriers and fostering a culture of inclusivity are essential steps towards realizing the full potential of female participation in the real estate sector.

The rise of women in real estate investment represents a transformative shift in the dynamics of property ownership and wealth creation. In this evolving narrative, women stand not only as investors but as architects of their financial destinies, shaping the future of real estate investment with resilience, foresight, and determination.

Authored by Amrita Gupta, Director, Manglam Group, Founder & President, CREDAI Rajasthan Women’s Wing. Views expressed by the author are their own.