From startups to property: How do investment priorities shift across generations?

Investment shifts through ages: Real estate is gaining prominence as a major asset class in investors' portfolios. As much as 31 per cent of respondents are increasingly drawn to real estate investments as they seek to diversify their holdings, according to the Homebuyer Sentiment Survey by Anarock and FICCI.

Generation gap: Who invests in what?

Gen Z  [1997 – 2012]

Generation Z, though still young, shows notable interest in future investment goals. A major portion, accounting for 24 per cent, aims to invest in homeownership. Reflecting their adventurous nature, 36 per cent allocate investment gains to fulfil travel aspirations, indicating a preference for experiences over material possessions. Entrepreneurial drive is evident amongst 35 per cent of Generation Z, who earmark funds for potential business ventures, highlighting their innovative mindset. However, there's room for improvement in financial awareness, with only 2 per cent prioritising emergency funds. Surprisingly, retirement planning isn't a current priority, suggesting a focus on immediate goals and experiences rather than long-term financial security.

Millennials [1981 – 1996]

As much as 58 per cent of Millennials prioritise leveraging their investment gains towards homeownership, reflecting a strong desire for stability and asset accumulation. While vacations are not a primary focus, a small percentage (3 per cent) allocate funds for leisure activities. Entrepreneurship remains a significant aspiration, driving 27 per cent of Millennials to invest in potential business ventures. Building an emergency fund gains moderate attention, with 10 per cent recognising the importance of financial security. However, retirement planning ranks relatively low, with only 2 per cent stressing long-term financial planning, indicating potential challenges in this aspect for some Millennials.

Gen X [1965 – 1980]

Generation X continues to prioritise homeownership, with 39 per cent aiming to utilise investment gains for this purpose. Similar to Millennials, vacations are not a primary focus for this cohort, with only 3 per cent allocating funds for leisure activities. Entrepreneurial pursuits attract a notable but lesser portion of Generation X, with 12 per cent showing interest in starting businesses. However, building an emergency fund gains considerable attention (22 per cent), reflecting their focus on financial stability. Retirement planning emerges as a priority, with 24 per cent actively preparing for long-term financial security, highlighting their proactive approach to future financial stability.

Baby Boomers [1946 – 1964]

Amongst Baby Boomers, homeownership remains a notable investment goal, albeit less prominent compared to younger generations, with 16 per cent prioritising it. Vacations hold minimal importance in terms of investment allocation, with only 2 per cent earmarked for leisure activities. Similarly, entrepreneurial ventures rank low, also at 2 per cent, reflecting Baby Boomers' focus on stability and retirement planning. However, building an emergency fund takes precedence, with 45 per cent prioritising financial security. Retirement planning emerges as the top priority, with 35 per cent actively preparing for long-term financial stability in their golden years, highlighting their focus on securing their future.

Overall, the appeal of real estate lies in its potential for long-term stability and growth, as investors accumulate capital gains from various sources. This trend indicates a growing recognition of the value of property acquisition amongst investors. The survey also reveals key drivers influencing investment decisions, with 25 per cent intending to use capital gains for future business ventures, showcasing a strong entrepreneurial spirit. Retirement planning emerges as a priority for 17 per cent, highlighting the importance of financial security in later stages of life, while 15 per cent prioritise building emergency funds, reflecting a prudent approach to financial management. Additionally, 12 per cent allocate investment gains towards fulfilling personal aspirations, such as dream vacations, indicating a balance between financial objectives and lifestyle choices.