NRI buyers continue to make their presence felt in the Indian real estate market. This sustained NRI interest has come as a major tailwind for the sector, which is steadily getting back to normalcy, aided by a rise in domestic housing demand as well.
NRI buyers continue to make their presence felt in the Indian housing sector, propelling sales figures, helping developers clear up unsold inventory, and stimulating the growth of the luxury and ultra-luxury segments as well. What lies behind this continuing interest of NRIs, especially after the pandemic?
Experts reckon that it is more of an attempt to build wealth and property across multiple generations. Indian families have faith in the concept of expanding household wealth throughout generations and bequeathing assets to the next generation. While several NRIs are already living in global cities and travelling frequently, they are still tied to this concept. Many of them are also travelling to India on work or business more frequently. They are naturally looking for transit homes instead of putting up at hotels every time.
At the same time, NRIs are also investing in second homes for their parents and families. They are finding the Indian housing market more affordable with the currency depreciation and have higher buying power than before. They are also seeking low-density units with good access to medical infrastructure and other amenities. Relaxation of regulations on investments has also prompted higher second home investments by NRIs along with stable prices of properties back home in India.
How NRIs are Making it Count
NRI buyers already constitute a major chunk of the Indian housing market. Reports highlight how they drove $13.1 billion in Indian real estate last year. Their share of investments is also forecasted to increase by 12% this year. Here are some other points worth noting:
- Good infrastructure development in India has attracted NRIs towards investing in their hometowns.
- Contemporary luxury and ultra-luxury projects by reputed developers are almost at par with their global counterparts in terms of design, space, natural beauty, amenities and more. This is also drawing NRI buyers in large numbers.
- NRIs are also picking up properties in hill stations for cooler climates, natural attractions, improved connectivity and premier properties which are similar to their standards in developed nations.
- With a flourishing corporate sector in Indian metros, most projects now have amenities and lifestyles which are similar to big-ticket global housing communities.
- NRIs are contributing towards a recent boom in luxury real estate. There are more choices available for NRIs today, ranging from second homes in exotic destinations, luxury villas, independent homes, bungalows, luxury apartments, penthouses, duplexes, independent floors, plotted developments, and more.
- The country has also developed considerably in terms of its economy, infrastructure, connectivity, retail, social amenities and commercial development. This is drawing the attention of NRIs, many of whom are buying homes for future retirement in their home country.
- Most projects now offer enhanced security and a gated community atmosphere that NRIs desire. They are also interested in integrated townships with all amenities within the campus and complete self-sufficiency.
- NRIs are also attracted to comparatively lower rates of interest on home loans and the prospects of earning higher returns on their realty investments in India. Many are buying properties in pristine locations for renting them out as holiday homes and earning some extra money on their investments.
- Gurgaon has become a big hub for NRIs across both its residential and commercial real estate segments. Gurgaon attracts NRIs with its superb connectivity, infrastructure, social amenities and skyrocketing technological and commercial growth. It is home to some of the country’s biggest corporates, hospitals, financial players, retail zones, international schools and more.
- NCR (National Capital Region) is already a major corporate and IT hub and residential sales are surging currently with more luxury projects and exclusive amenities. NRIs are drawn to the availability of all types of luxury and premium projects in several categories in the region.
Experts feel that residential realty has always been a top pick for NRIs. They have become major market forces over the last couple of years or so. This has particularly benefited the luxury housing category. At the same time, it should be mentioned that NRIs are more inclined towards end-use at the moment rather than investments. Sales enquiries and deal closures have both increased exponentially, as reported by real estate brands, developers, and agents.
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NRIs also prefer the fast lifestyle embodied by the NCR along with other metro cities in the country. They are coming to the region in higher numbers, especially those with business interests or commercial investment plans in the future. Gurgaon is also benefiting due to its connectivity to the Indira Gandhi International Airport along with top-notch highways, expressways, good amenities and a cosmopolitan ambience. It is home to several MNCs and Fortune 500 companies as well. Similarly, with the Noida International Airport coming up, Noida and other NCR regions will also witness similar demand. Southern cities like Bangalore and Hyderabad are also witnessing sizable demand in the luxury and ultra-luxury segments. The trend should continue as per experts.
