NRI Investments : In a surprising turn of events, the Indian residential real estate market has witnessed a remarkable surge in investments from non-resident Indians (NRIs) over the past year. According to Saurabh Garg, Co-founder and Chief Business Officer of NoBroker, there has been an astounding 35% year-on-year rise in NRI investments. The average ticket size of these investments ranges from ₹90 lakh to ₹1.5 crore, painting a picture of newfound confidence in the Indian real estate sector.
This surge in demand stands in stark contrast to the pre-Covid-19 era when NRI investments remained in single-digit figures. As per industry estimates, India witnesses housing sales worth about ₹4,00,000 crore annually. Approximately 15-20% of this colossal figure, roughly ₹50,000 crore, is contributed by NRIs, primarily in the primary residential units. When factoring in both primary and resale properties, the total sales in the Indian real estate market reach an astounding ₹9,00,000 crore, with NRI investments now accounting for close to ₹1,50,000 crore.
Several key factors contribute to this unprecedented increase in demand from NRIs. First and foremost, NRIs are drawn to the potential for high returns and the stability offered by the Indian real estate market. Unlike the volatility witnessed in stocks and cryptocurrencies, real estate consistently provides a reliable investment avenue.
NRI Investments & Gated Communities
Moreover, NRIs are increasingly inclined towards gated communities and land investments for premium properties due to the abundance of amenities and the ease of renting. A recent survey conducted by NoBroker revealed that a staggering 98% of the demand from NRIs is for gated communities. Among the key markets, Chennai, Pune, and Bengaluru have emerged as hotspots for premium properties, with Chennai taking the lead as the most attractive market for NRIs.
The transformation of the NRI’s outlook towards Indian real estate can be partly attributed to the ease of property management in the country today. Historically, one of the major challenges faced by NRIs was the management of their properties in India, often relying on distant relatives and brokers. However, the modern real estate landscape in India has evolved to offer comprehensive property management services through online portals. This evolution has significantly reduced the reliance on intermediaries, making NRIs more optimistic about investing in the Indian real estate market.
The surge in NRI investments in the Indian housing market is undoubtedly a positive sign for the industry. It reflects the growing confidence of NRIs in the potential returns and stability that the Indian real estate market has to offer. As this trend continues, it is expected to bring further dynamism to the real estate sector and open up exciting opportunities for both investors and developers alike.
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