With exponential growth expectation this year, various industry studies have shown that NRI investments in Indian real estate are robust and will continue to spark off more significant numbers in the coming years.
The NRI investments in real estate equalled to billions of dollars last year, which came as a booster in pandemic times when the Indian real estate was seeing a slowdown.
NRIs have mostly shown interest in luxury homes and holiday properties in India with the majority of bookings being witnessed in those categories. It is also reflective of a positive sign for the realty business as it is continually picked as an attractive asset promising of heftier and better returns than any other investment.
The NCR realty corridor has become the most popular territory for NRI investments. Gurugram has emerged as their most liked zone for scouting for luxury properties and homes. It is also somewhat a huge growth parameter for the business, especially the ones in metro cities, as it has caught the attention of NRIs and foreigners, who have a penchant for investing in luxury homes in India.
The well-connected ecosystem and the recent and continuously growing infrastructural developments have also aided the rising interests of NRIs. Modern-day homes are luxurious townships located at prime corridors and fostered with world-class amenities. It is well-connected to popular hubs, cultural centres, corporate offices, and places of work which offer a desirable lifestyle and convenience. The vicinity to international schools, hospitals, financial institutions, and retail spaces amplify the prospects of investments in these places, with Gurugram topping the charts.
A certain sense of disillusionment and alienation from hometowns experienced during Covid has also brought them back to the markets. Re establishing connections with the motherland and a desire to experience a similar lifestyle and exchanges with people of similar social and cultural fabric and identity play a major role in the remarkable growth of NRIs in the real estate sector. Besides this, economic factors also come into interplay. NCR has earned the position of an IT/BPO hub. There is a fast-growing corporate culture spreading its roots. A scalable rise in well-paying job opportunities is being witnessed, and the establishment of MNC campuses is thriving. The conjunction of growth in these intertwined factors all contribute to the surging NRI interests in investing or probably even settling in India.
For holiday homes or short visits, NRIs are investing in hilly regions with idyllic settings and mesmerising geo-physical locations. They are known to make short trips for quick getaways and vacations to their home country. Goa, Chennai, Manali, Zirakpur, etc., are some of the most looked-out places for vacation homes. There are two folded motives:- either to increase returns or for self-use occupancy.
Whatever might be the purpose, there is an increased investment of NRIs in the real estate market, which has extended the consumer market pool for developers and also encouraged them to level up their projects to meet the global standards of living.
(By Shubham Sardana, Director, Elite PRO)