The investment decisions are often typical to the community that an NRI belongs to. A Malayalee’s need to invest is very different form that of a Gujarati’s. The mindset for each community is different and their behavior in investments are defined by that premise. Let me give you an example. If you look at the Middle East, then there is a large contingent of Malayalee’s, who have been one of the early expats in the Gulf. Generally, you will find them in the salaried segment or in small well established businesses like restaurants and general stores.
Generally, they are people with a family back home that they have to provide for. Therefore, one of their primary goals is to make a house for themselves and secure their and their family’s future. Today if you go to Kerala you would see large palatial houses and huge beautiful apartment complexes nestled between the swaying coconut trees. They are a visible symbol of the Malayalee pride investing back into his/her God’s Own Country.
Other South Indian Communities would also normally invest as an end user first, before adopting an investment mindset. They look at a lot of criteria before making an investment like language, education, employment opportunities, medical facilities, urbanization, and infrastructural growth, level of consumerism, retirement benefits and closeness to peer group or relatives. Again Bangalore has topped the charts here as it’s been an ideal eclectic mix of all of the mentioned parameters. Chennai is catching up very fast because of Motown and the new IT hubs at Chengalpattu. OMR and ECR areas are expanding with some good projects close to the beach by some top National Developers. This region has attracted a lot of interest from Singapore and the Middle East. Mostly in the self-use segment.
Sindhi’s, Kutchi’s and Gujarati’s are one of the most prudent investors in the realty market. Very strongly knit together and very opportune they generally invest in groups. Their choice of projects are typically where price appreciation is expected in the next 2 – 3 years. Being visionaries and people with good business sense, they know how to take risks and have the foresight to make initial investments in places where few will. Mumbai, Pune, Bangalore have seen a lot of investments by this community. Normally they book their profits and exit as per the terms with the developer. They also rotate the profits in new investments or park it somewhere on interest. They also are very strong in funding and are the back bone for some of the leading developers.
Mumbai has shown a lot of traction for good projects in the western belt as well as LBS Marg for investment cum end use properties. Luxury homes with great amenities either inbuilt or in the close vicinity can be seen propping up here by various developers. Also, Pune has shown a steady growth for luxury properties, even in areas which were considered outskirts. Ahmedabad has
