By Dinesh Yadav, Founder and MD, Fine Acers
For generations, festivals in India have been synonymous with wealth preservation and asset building. Gold has traditionally been a preferred asset for High Net Worth Individuals (HNIs) during festivals. It has been a symbol of prosperity and safety for many individuals. But as prices of gold are rising steadily, many HNIs feel it may not be worth further investment as compared to other attractive and futuristic asset classes.
One of the changes the industry is experiencing today is that traditional festive investments are giving way to branded resorts and residences. This is not just a lifestyle statement but a calculated investment strategy combining appreciation, enjoyment and a transfer of assets for future generations.
Gold Safe but Saturated
There is no denying that gold remains a safe-haven asset. According to industry reports, gold prices in India have surged by nearly 15-20% over the past year, making it increasingly expensive for investors to accumulate significant volumes during the festive season. However, the problem lies in returns. While gold’s historical appreciation has been steady, it does not generate ongoing income or experiential value. For HNIs, parking large sums into gold often means holding a passive asset that sits in vaults or bank lockers.
Branded Resorts a potential wealth
In contrast, branded resorts on sales leaseback (SLB) model represent a tangible, appreciating asset that offers both monetary and lifestyle dividends. Resorts in highly desired tourist destinations are seeing an increasing occupancy rate, year after year, of India’s ever-growing domestic travel market and experience-driven tourism.
The value of luxury resort facilities will increase with time and yield recurring revenue, being leased out professionally. Unlike gold, which needs to liquidate into returns, branded resorts on SLB model pay yield year on year through lucrative income, tax efficiencies and long-term capital gains.
The Best Gift, A Legacy Holiday Home for Generations
In India, festivals are also moments for families to pass on wealth to the next generation. Traditionally, this has been in the form of gold, property or cash. But in the age of globalized lifestyles, HNIs are increasingly contemplating embracing the idea of gifting something exuding more meaning for their youngsters, such as investment made in branded resort which offer regular passive income.
An investment like this symbolizes prosperity and also creates alifetime of memories. It offers getaway opportunities wherein the children and grandchildren can bond, celebrate, and relax. Simultaneously, it remains a professionally managed income asset-one that very few investments can boast of.
While the price of gold has climbed steeply in the last year, the returns from branded resorts on sales leaseback model, when factoring in both rental yields and appreciation, have consistently outperformed. For HNIs, this dual benefit of emotional utility and financial viability makes investment made in branded resorts the smarter festive gift.
Why HNIs Are Making the Shift
With gold prices peaking, returns on additional investments on gold may be flattened. Branded resort is not just an asset; it is a lifestyle statement. It offers structured leaseback or regular income opportunities. Parents can gift a tangible, aspirational asset to their children that grows in both value and sentiment for generations and branded resorts provide a hedge against inflation and market volatility, balancing traditional portfolios.
The Way Forward
India as fast growing economy with increasing consumer aspirations, investments do not simply promise financial safety anymore; rather, they ensure the creation of meaningful experiences, memories and legacies. Traditionally, the festive season has served as an opportunity to blend tradition with a modern twist, from gold into gifting branded resorts that come with permanent returns and a slice of luxury living. Fine Acers, a pioneer in developing Branded Resorts on sales leaseback model in India is offering steady returns along with lifestyle perks. We are exemplifying this trend where investors are increasingly seeking these branded resorts for themselves as well as to pass on wealth with significance. In many ways, branded resorts are the new version of gold-a shining investment that glitters not in lockers but in living full lives.
