Top real estate investment hotspots for NRIs in India

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Published: March 15, 2017 6:04:55 PM

Non-Resident Indians (NRIs) have over the years emerged as a significant source of investment for the Indian real estate sector. Earlier NRIs used to invest in the sector largely for end use or personal use. However, they are also buying real estate for investment purposes now.

It offers excellent infrastructure, inclusion in the smart cities list, centrally located and well-connected with Mumbai via railways and roadways.

Non-Resident Indians (NRIs) have over the years emerged as a significant source of investment for the Indian real estate sector. Earlier NRIs used to invest in the sector largely for end use or personal use. However, they are also buying real estate for investment purposes now.

Whatever be the case, the consistent top beneficiaries of the NRI buyers’ interest continue to be the cities given below:

Mumbai (Thane and Navi Mumbai that are pertinent growth corridors) – Thane and Navi Mumbai present a better choice for investors due to continuous growth in employment opportunities, thus leading to increase in demand of residential properties.

Thane – It offers excellent infrastructure, inclusion in the smart cities list, centrally located and well-connected with Mumbai via railways and roadways.

Navi Mumbai – A well-planned city with low pollution level, excellent connectivity to Mumbai and other parts of the state, and good transportation system. Also, the proposed international airport will definitely impact property prices positively.

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Bangalore (Whitefield) – The city boasts of major IT / ITES hub and growth corridor, good connectivity and social infrastructure, growing demand for properties, and supply tailored to meet different budgets. Improved connectivity and other infrastructural benefits will increase demand for both office and residential in this submarket.

Hyderabad (Gachibowli) – The factors that have attracted investors in this sub-market include emerging IT destination, educational hub, upcoming infrastructure and affordable capital values. Demand will remain strong due to demand from the employees working in IT/ITeS firms. With infrastructure developments and improved connectivity along with relatively reasonable pricing of real estate, it will continue to remain as an investment potential for investors.

Ahmedabad – Some of the factors that attract investors include emerging industrial powerhouse, government focus on improving overall infrastructure, attractive incentives and policies for investors, transparent and easy investment process, and low entry points.

Chennai (most of the southern suburbs) – The southern suburb of Chennai which covers the major growth corridors along the Great Southern Trunk (GST) Road, Old Mahabalipuram Road (OMR) and East Coast Road (ECR) have witnessed rapid development over the recent years. Growth in the IT/ITeS sector along with high liveability quotient, excellent civic bodies and an overall thrust on infrastructure development, and broad industrial base in the technology, automobile, healthcare and hardware manufacturing sectors.

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NCR (Noida) – Existence of several MNCs and interest from large IT companies, good infrastructure and connectivity, affordable capital values.

NCR (Gurugram) – Industrial and financial center of the Indian north-western state of Haryana, also popular as the call centre capital of the world, social and supportive infrastructure, excellent location and connectivity, favourable tax policies, presence of varied industries such as IT/ITES, retail, textiles and an increasing number of SEZ’s.

“The most important and common reasons for these cities to command consistent investments from NRIs across the globe are modern urban development, economic growth, infrastructure, education, political stability, efficient legal system and ease of investment and exit,” says Mona Jalota, Director, International & NRI, Residential Services, Colliers International India.

Cities that are close on the heels of the above mentioned top cities are Pune, Kochi, Vishakhapatnam and Indore. This growth is fuelled by consistent demand from the IT/ITeS sector in these cities. They have the added attraction of being commercial hubs and educational hotspots of their respective regions and hence could be considered as lucrative property investments in the future. Even Goa attracts NRIs for its holiday home and a beach-centric relaxed lifestyle.

“All of these cities are seeing a constant growth in the employment opportunities, thus increasing the population of professionals from across the country. This has led to increased launches of residential projects, especially in the affordable segment, which is where the highest demand exists. Therefore, NRIs looking for returns in new developments in these cities can not only expect an attractive growth in capital values over the mid-to-long term, but also a steady rental income,” says Jalota.

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The government, recently, has also introduced the Real Estate Regulatory Authority and Development Act, thus protecting the buyer’s interest and bringing in the much-needed structure and transparency in the real estate sector. With this new transparent and pro-consumer wave in the Indian real estate sector, investing in residential property is set to become even more attractive for NRIs.

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