Real Estate has always been a cynosure for the Indians whether they live in the country or outside the country as far as prized possessions are concerned. Purchasing a property in their own country gives them the feeling of them being connected to their roots along with making sure a certain and constant return on investments when compared to gold and stocks.

According to some industry reports, the investment in the real estate market of India by the NRIs has increased significantly by almost 15 percent despite some dull periods due to policy changes in 2018-2019. This has been possible due to the increased transparency and accountability of builders in terms of the construction quality and the timely deliveries. Besides that, the gradually diminishing value of the Indian currency has also escalated the real estate investments from countries like UAE, US, and the UK.

Changes in the NRI investments trends in Indian real estate

The affordable residential projects attracted maximum tractions from the NRI investors contrary to the previous year due to the ensured returns on the investment. Going by a recently executed survey, the affordable segment is expected to witness a growth of about 8 to 10 percent in terms of its property value as compared to the 2 to 5 percent in the luxury section.

The prime markets that have been attracting maximum eyeballs in the past one year are Delhi, Mumbai, Hyderabad, Kolkata, and Mumbai.

Mumbai

Mumbai has been a consistent center of attraction for the real estate investment and that trend continued to go on in 2018-19 also. There was a noteworthy shift in the home buying tendency of the NRIs this year as the well-researched buyers were attracted towards the properties which were priced between Rs 85 and Rs 1.2 crore. The main territories which grabbed the most attention were Panvel and Thane. The areas close to the borders of Goa Highway, Pune Expressway, and Ghodbunder Road were the most preferred localities by the NRIs as asserted by the national president of NAREDCO, Niranjan Hiranandani.

The affordable segment consisting of mid-sized 1 and 2 BHK homes were the most sought after as they are very easy to rent and relishes of higher resale value when compared to the luxury segments. Another region to attract average friction was Powai, which along with covering the luxury requirements of the NRIs, made the homes available at affordable prices.

Delhi-NCR

In the quest for sensibly priced investment choices in Delhi-NCR, the NRIs have transferred their attraction from the over-budget homes in Gurgaon to the reasonably priced markets of Noida and Greater Noida. With the efficiently structured homes equipped with modern features, the affordable homes of Noida and Greater Noida have become the first choice for the NRIs to invest. Apart from the affordable homes, the extension of the metro routes, the proposed Jewar airport, and the progressions across Noida & Yamuna Expressway, have collectively triggered the escalation of the preferences among the NRIs.

Hyderabad

Hyderabad witnessed a significant demand for both the luxurious and affordable units from the NRI investors. The luxury segment attracted the investors in the neighboring areas of IT hubs like Kondapur, Manikonda, Gachibowli, Chandanagar, and Nallagandla, whereas areas like Kompally, Tellapur, Mokila, and Isnapur were the preferred regions for the investment in affordable segments. Over the year, Hyderabad was able to witness a growth of almost 15-20 percent in its real estate sector.

The implementation of Telangana RERA has transformed the real estate sector into significantly transparent and efficient, which was tempting enough to attract local as well as foreign investments in this sector. Kolkata

The rapid development in the infrastructures of the regions like New Town, Rajarhat, and Joka has given a major momentum in the field of real estate investment in Kolkata by the NRI section. Comfortable reaching distance from all sorts of facilities and commercial ventures combined with a wide range of property choices are the major factors that are driving this whole growth of real estate sector in these regions. Apart from that, the creation of REIT has also led to a major upsurge in the residential and commercial development of Kolkata.

Bangalore

Bangalore has become a quintessential spot for the IT professional whether residing in India or outside the country. The affordable housing segment priced between Rs 60 and 80 lakh in the territories like Whitefield, Marathahalli, and the vicinity of Sarjapur Road has emerged as the most preferred ones due to its proximity to the close by IT hubs and high potential returns on investment.

Summary

In spite of many obstacles, real estate investments by the NRIs in India has increased with a good pace in the past year when compared to 2016 and 2017. While the general elections are due to take place shortly which could hamper the progress temporarily, the trend is expected to grow after the creation of the new government. Some other elements that could positively affect the escalation of NRIs investment in India are the REITs and a significant supply of inventories in the affordable housing section.

Disclaimer : The perspectives communicated above are for instructive purposes which are simply dependent on industry outlines and related documents. Per Square Feet does not ensure the exactness, perfection, or the absolute quality of the data and will not be considered in charge of any reaction dependent on the published data.