New Delhi, Dec 12 (IANS) Real estate remains the preferred choice of urban Indians for long-term investments, scoring over equities, gold and state-run savings schemes, says a leading industry lobby.

"Sixty-five percent of working individuals in urban India prefer to invest their hard-earned money in real estate for the long term," said the Associated Chambers of Commerce and Industry (Assocham) survey "Current Investment Patterns in working Urban Indians".

The report said the majority of the 1,500 people surveyed believe investments in the real estate sector guarantee higher returns without exposing them to the risks faced by other volatile options such as the stock market, equities, mutual funds and gold.

"Real estate guarantees them higher future returns and on the other it helps them stay off other investment options involving more risk like stock market, equity, mutual fund, gold, etc," the report said.

According to Assocham secretary general D.S. Rawat, the real estate sector is a lucrative investment option because of the growth and development of the sector which has led to the soaring property prices.

"Hefty escalation in price with growth and development in the area is significant factor that attracts working individuals and propels them to invest in property," Rawat said.

The survey further pointed that the bulk of those interested in investing in the realty sector (65 percent) want to do so in tier-II and III cities because the prices are more affordable and these cities have future growth prospects.

Investment in gold retained second position as 20 percent of those surveyed preferred to invest in it. They considered investment in gold as a safe and trusted valuable commodity which is encashable anytime.

Saving schemes such as mutual funds and insurance products were least preferred with only 15 percent of the respondents going for them.