The real estate sector in India is witnessing a noteworthy transformation, with women emerging as key investors in the property market. A recent survey by leading consultancy firm Anarock has revealed that in the latter half of 2024, real estate has become the most preferred investment avenue for 70% of women. A look into the evolving trend, and the factors driving women’s participation in real estate, their preferences, and the challenges they encounter in the process.
Financial independence
According to the 2019-20 Annual Survey of Industries, released by the Union Ministry of Statistics and Programme Implementation, Tamil Nadu accounts for 6.79 lakh, or 43%, of the 15.8 lakh women employed in industries across India. The state’s female workforce participation rate exceeds the national average. Tamil Nadu, particularly Chennai, boasts one of the highest female workforces in the country, propelled by strong employment opportunities in manufacturing and the service industry. This financial independence has given women greater autonomy in making real estate investments, with many opting to purchase properties independently or as co-applicants. This trend signifies a notable shift towards economic empowerment and long-term financial security.
Attractive incentives
Financial institutions and developers have introduced a range of benefits aimed at encouraging women to invest in property. Banks offer preferential home loan rates for women, typically providing a discount of 0.25% to 0.5% on interest rates. Additionally, some developers extend special incentives, offering price reductions ranging from ₹50,000 to ₹1 lakh for women buyers. These incentives make real estate a financially attractive investment choice.
Long-term asset
Women often prioritise stability and long-term financial security over high-risk investments. Traditionally, gold has been their preferred asset due to its steady appreciation and reliability. However, real estate — whether in the form of residential plots or apartments — is increasingly being viewed in a similar light. Unlike equities, which are subject to market fluctuations, real estate offers stability, making it a compelling investment choice.
Rental income
For many women investors, real estate serves as a means of ensuring financial independence. Rental income provides a steady source of earnings, allowing them to manage personal expenses without relying on spouses or family members. Monthly rental returns, whether ₹15,000, ₹25,000, or even ₹40,000, offer a sense of financial security and autonomy.
Preference for stability
Women investors generally demonstrate a lower appetite for risk, making real estate a preferred asset class over equities. The inherent volatility of stock markets, where prices can experience drastic fluctuations, often discourages women from investing. In contrast, real estate is known for its resilience, with property prices seldom witnessing sharp declines. This preference for low-risk, stable investments underscores the growing trend of women choosing real estate as a wealth-building avenue.
Appeal of community living
Beyond financial considerations, women are increasingly drawn to apartment living due to the enhanced security and community environment it offers. Modern residential complexes come equipped with amenities such as swimming pools, gyms, jogging tracks, and children’s play areas, fostering a sense of belonging and social engagement. Unlike previous decades, where residential buildings were typically smaller with limited amenities, contemporary housing developments now emphasise community living, further strengthening their appeal among women homebuyers.
Cost preference
Research indicates that women prefer homes priced between ₹70 lakh and ₹80 lakh, considering this an optimal investment range. Their home-buying decisions are influenced by several functional and practical considerations, including:
Kitchen layout and design: A well-planned kitchen with ample space and utility areas remains top priority.
Dedicated wardrobe space: Many women seek a separate wardrobe or dressing area for enhanced privacy and storage convenience.
Location and accessibility: Proximity to essential services such as grocery stores, pharmacies, and healthcare facilities plays a critical role in their decision-making process.
Common challenges
Despite the increasing participation of women in real estate investments, navigating the homebuying process continues to pose challenges. Many women lack familiarity with legal and financial procedures, including property documentation, home loan approvals, and legal due diligence. Identifying trustworthy legal advisors and gaining financial awareness are areas where further education and literacy programmes can play a pivotal role.
Government support
Industry experts have long been advocating for policy interventions to support women homebuyers, particularly a 1% reduction in stamp duty and registration charges. Such measures would not only make home ownership more accessible for women but also encourage greater participation in real estate investments. However, these recommendations are yet to be implemented. If introduced, they could serve as a catalyst for bridging the gender gap in property ownership and fostering financial independence among women.
TN rules: 1% off
The Commercial Taxes and Registration department of Tamil Nadu issued a government order recently implementing a 1% reduction in registration fees for immovable properties registered in the name of women. This was in line with the State’s Budget announcement, emphasising that women have an equal stake in property ownership. This concession applies to houses, plots, and agricultural lands valued up to ₹10 lakh, making property registration affordable for women across the State. The revised rates have come into effect from April 1.
The increasing presence of women in the real estate market reflects a progressive shift towards financial empowerment. Favourable lending policies, stable returns, and the security of home ownership make real estate an attractive investment avenue for women. Addressing the challenges of financial and legal literacy, coupled with supportive government policies, could further accelerate this positive trend. As more women embrace real estate investments, the industry is set to evolve into an inclusive and equitable space, marking a significant milestone in India’s property market.
The writer is Managing Director, DRA Homes.
Published – April 04, 2025 03:00 am IST