Kerala Sees Real Estate Boom as Gold Prices Hit Record Highs

Gold prices have skyrocketed, with one-gram trading at ₹11,465 and one sovereign (pavan) at ₹91,720. At the beginning of this year, the price of a sovereign was around ₹56,000. In the last two months alone, gold has become costlier by nearly ₹15,000.

Even as prices rise, many continue to buy gold, seeing it as a safe investment and believing prices will climb further. At the same time, those who purchased gold a couple of months ago are now selling it to cash in on the ₹14,000 profit per sovereign.

Real Estate Comes Out on Top

The sector that has truly gained from the gold price surge is real estate. Investors who once preferred gold are now worried whether this price trend will continue long-term. If prices fall sharply after rising so high, it could result in significant losses. This concern is pushing many to shift their investments from gold to real estate, according to industry insiders.

Many are selling their gold holdings and buying land instead. Concerns over the safety of storing high-value gold have also increased with the price surge. As a result, numerous people are selling gold and reinvesting the money into land or commercial spaces. Most prefer land because its resale value is almost always higher, making it a more dependable long-term investment.

Sharp Rise in Gold Sellers

The number of people selling gold has risen substantially. Many feels that with prices at such high levels, selling now allows them to meet long-pending financial needs. There's also a significant rise in people selling gold to build homes without taking bank loans. Selling around 50 sovereigns of gold provides enough money to build or buy an above-average home. The absence of bank loans and long-term EMIs is encouraging many to convert gold into property.

GST 2 Brings Down Construction Costs

GST 2 has helped reduce prices of construction materials, making building homes more affordable. Real estate professionals say this has further encouraged people to sell gold and invest in real estate, home construction and commercial buildings.

Why Are People Selling Gold?

• Concern that gold prices may drop suddenly
• Those who bought gold at lower rates are selling to secure high profits
• Fall in land and housing prices encourages people to sell gold and buy property
• Number of gold sellers has increased by 30%