What are NRIs preferring in terms of Real Estate Investment? Proptech Square Yards conducts thorough research on how NRIs invest in properties and their desired locations.
Research-based on the flourishing property-tech company Square Yards showcases how Non-Resident Indians like to invest in real estate properties in India. They were able to jot down some of the top cities to invest in real estate for the expats. The national capital region appears to be a major destination for investment. Delhi, Noida, and Gurugram ace the list of best cities to buy real estate in India. The Delhi-NCR region alone rakes up 56% of the total property sales during the previous fiscal year. However, cities like Bangalore, Mumbai, and Pune also contribute immensely with 22%, 11%, and 6%, respectively.
Speaking of categories, it appears that middle-income groups prefer budget-friendly properties priced less than INR 1 Crore and offer connectivity and convenient amenities. About 86% of the total sales were completed for less than INR 10 million properties. The major reasons why expats still prefer the Indian real estate market include the falling value of the Indian rupee, fast-growing economy, attractive interest rates on housing loans, tax benefits on investments, and a sense of homeliness. NRIs find it prudent to not miss out on these tingling grounds of reasoning any more than to own a property in their homeland for the post-retirement period. NRIs and anyone investing in Indian real estate at present can boost up capital for the investors in the long run.
Another study conducted by 360 realtors predicts that revenue inflow from NRI is expected to be about 12%. Total revenue of USD 13.1 billion was already recorded in the previous financial year. As per the report, Gurugram has been ranked as one of the best cities to invest in real estate. This is mainly owing to the well-established corporate hub admonished with pristine residential apartments. All the housing projects are near an array of amenities, including schools, hospitals, leisure spots, sports complexes, restaurants, and much more. Some of the NRIs also prefer luxurious and premium projects, which are readily available in key cities, including Delhi, Bangalore, Mumbai, and Pune. And Gurugram is also becoming a lucrative market for residential units that are posh and luxurious. In cities like Noida, most projects are coming up as high-rise apartment buildings which offer budget flats. These are also popular among both NRIs and local investors.
Owing to the rising demand for residential projects, Godrej Properties Limited recently incorporated INR 15,000 crore worth of investment in procuring new lands and collaborating with land owners for 20 upcoming residential projects. They are targeting some of the best cities to buy real estate, including Chandigarh and Mumbai. While speaking to the media, the GPL chairman expressed his confidence and optimism that the company can scale up to INR 10,000 crore in sales revenue for the current financial year. Although the main target buyers are local Indians, the construction will be completed in premium architectural designs. The quality raw materials make the value high, and Non-resident investment will be expected to be a part of their sales revenue.
