In an era where job mobility is becoming the norm rather than the exception, many employees find themselves moving cities, states, or even countries on a regular basis. For these “mobile professionals”, the traditional dream of owning a home can feel more like a logistical hurdle than a long‑term investment goal. The growing consensus among financial planners is that for those who anticipate frequent relocations, prioritising liquid financial assets—mutual funds, ETFs, or liquid savings—offers greater flexibility and returns than tying up capital in real estate.
The Cost of Constant Change
Frequent relocation carries hidden costs that go beyond the obvious moving expenses. Each move requires a new tenancy agreement, a fresh security deposit, and the time and effort to find suitable accommodation. In cities like Bengaluru, Hyderabad, and Pune, the average rent for a two‑BHK apartment can range between ₹25,000 and ₹45,000 per month, while the deposit—often two to three months’ rent—adds a sizable upfront outlay. Moreover, the resale value of a property is heavily dependent on local market dynamics, which can be unpredictable for a transient homeowner.
A 2023 report by the National Housing Bank (NHB) highlighted that the average time a homeowner spends in a single property in India is 7.5 years, a figure that has been steadily declining in the past decade. For professionals who anticipate moving every 2–3 years, the property would be a depreciating asset rather than a stable investment. Additionally, the administrative burden of selling a house—appraising, listing, negotiating, and dealing with stamp duty, registration, and GST—can take 3–4 months, during which the property remains illiquid.
Liquid Assets: Flexibility and Growth
Liquid financial instruments, by contrast, offer immediate accessibility and the potential for capital appreciation. Mutual funds and ETFs, for instance, allow investors to buy or sell units at market price on any trading day, subject to the fund’s liquidity parameters. According to the Association of Mutual Funds in India (AMFI), the total assets under management (AUM) of equity mutual funds crossed ₹30 trillion in 2023, reflecting robust investor confidence and consistent performance over the long term.
Historical data shows that equity mutual funds have delivered an average annualized return of 12–14% over the past decade, outperforming the 8–9% return of the National Housing Bank’s Real Estate Price Index (REPI) in the same period. For a mobile professional, the ability to reallocate capital quickly—whether to take advantage of a new job opportunity, invest in a startup, or cover emergency expenses—provides a strategic advantage that real estate simply cannot match.
Financial experts also point out that diversification across asset classes reduces overall portfolio risk. A 2022 study by the Centre for Financial Services Studies (CFSS) found that portfolios with a mix of equity, debt, and liquid assets had a lower volatility index compared to those heavily weighted in real estate. For professionals on the move, this risk mitigation is particularly valuable, as sudden changes in income or employment status can affect liquidity needs.
India’s Real Estate Landscape for the Nomad
India’s real estate market is undergoing significant transformation, driven by regulatory reforms such as the Real Estate (Regulation and Development) Act (RERA) and the introduction of the GST on property transactions. While these measures have increased transparency and reduced transaction costs, they have also led to a more fragmented market, especially in tier‑2 and tier‑3 cities where property values can fluctuate sharply.
In metropolitan hubs, the demand for high‑end residential units continues to rise, but the supply of affordable housing lags behind. According to a 2023 report by the Housing and Urban Development Corporation (HUDC), the average price per square foot in Delhi, Mumbai, and Chennai exceeded ₹15,000, making entry difficult for mid‑income earners. For a professional who may need to relocate for a new posting, the high purchase price coupled with limited resale options can result in a net loss over a short holding period.
Conversely, the rental market has seen a surge in demand for flexible lease terms. Many property developers now offer “rent‑to‑own” or “lease‑to‑lease” schemes that allow tenants to convert their rent into equity after a certain period. While these arrangements can provide a pathway to ownership, they also require a long‑term commitment that may not align with a mobile lifestyle.
Outlook
For professionals who anticipate frequent relocations, the prudent strategy is to view real estate as a secondary, rather than primary, investment. By allocating the bulk of capital to liquid financial assets, they preserve flexibility, capture market gains, and avoid the illiquidity and administrative burdens associated with property ownership.
Financial planners recommend a diversified approach: a core holding of liquid mutual funds or ETFs, supplemented by a modest allocation to debt instruments for stability, and a small position in real estate for those who are certain of staying in a particular city for a decade or more. Additionally, professionals can leverage tax‑efficient instruments such as the Equity‑Linked Savings Scheme (ELSS) to simultaneously meet investment and tax planning objectives.
As the Indian economy continues to evolve, with a growing emphasis on digital infrastructure, remote work, and gig‑based employment, the need for adaptable financial strategies will only intensify. For the mobile professional, the adage “a house is where the heart is” may need to be re‑interpreted as “a portfolio is where the wealth is.”
See Also
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→ ONGC Secures U.S. Licence to Resume Full Venezuela Operations, Targets Operatorship
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