NRI Investments In Residential Real Estate Are Up 35% Year On Year

NRI Investments In Residential Real Estate Are Up 35% Year On Year

The residential real estate market in India has seen a 35% year-on-year increase in non-resident Indian (NRI) investments over the last year. The average ticket size investment falling between 90 lakhs and 1.5 crore, according to NoBroker data.

Although the trend is not new, the increase in demand is significant when compared to the period before to the Covid-19 pandemic, when it was in the single digits.

According to industry estimates, around 4,00,000 crores in house transactions occur in India each year. Nearly 50,000 crores (15-20% of total) is contributed by NRIs.

When we talk about both primary and resale NRI bookings, the total sales amount to 9,00,000 crores, of which close to 1,50,000 crores is NRI contribution.

He explained the rise in demand by citing various causes, including NRIs’ interest in the potential for high returns and the stability of the Indian real estate market, which offers more constant returns than other options.

High-End Properties

Furthermore, gated communities and land investments are becoming increasingly popular for premium houses. According to a poll conducted by the prop-tech unicorn, gated communities are in high demand due to their abundance of amenities and convenience of renting.

Furthermore, around 25-30% of demand is driven by investors wanting strong returns, while the remainder is for self-use, with a clear preference for 4 BHK units.

The company identified key locations such as Chennai, Pune, and Bengaluru, which have seen a huge influx of capital, resulting in an 18% growth in premium and luxury property investments. Chennai is the most appealing market for premium properties for NRIs among the top three.

Prospects for NRIs

The greater simplicity of property management is credited with changing NRI attitudes regarding Indian real estate. According to Garg, one of the major challenges for NRIs in the past was managing their assets in India.

Real estate portals of today provide extensive property management services, including property selection and tenant management. According to the co-founder, this minimizes NRI investors’ dependency on relatives and brokers, making them more hopeful about investing in the Indian real estate market.

Source- The Hindu

Compare listings