NRI Investments Surge in Indian Real Estate Market
Dec21

NRI Investments Surge in Indian Real Estate Market

Coping with financial crunch, stagnancy in supply, and falling prices, real estate investment in India is rapidly gaining pace once again. The once sluggish real estate sector, witnessing slow NRI and domestic sales, is now bubbling with activity followed by relaxation of FDI norms, growing demand, and possibilities of more development and capital for new projects. As the new government has strategically streamlined umpteen real estate projects by announcing a number of reforms, it has lead to a growth in average consumer interest, of which NRIs hold a significant segment of the market. According to a recent study, the real estate sector is seeing a surge in NRI interest as well as investment as compared to last year. In major cities like Delhi – NCR, Mumbai, Chandigarh, Bangalore, Kolkata, Ahmedabad, Pune, Hyderabad, and Chennai, the overall average NRI investment is expected to rise from 18% in the last year to 35% in 2014. As per real estate experts, formation of the NDA government, increased transparency and political stability is paving way for lucrative real estate investments from NRIs. New government reforms and initiatives towards developing the real estate sector have further gained confidence with the Non-Resident Indians. The latest trend reveals Bangalore to be the most preferred destination for NRI investments in real estate, followed by Ahmedabad, Pune, and Chennai. Earlier, NRI investments were limited only to residential segment; however, this year, NRIs are looking for attractive investment opportunities in luxury residential properties as well as commercial projects. The NRIs are feeling more confident about the new government and its policies, and are waiting for lucrative investment-friendly market in different fields. Revival of the global economy is also a major contributing factor, making consumers more optimistic; who are looking to invest in real estate. Subsequently, property developers in India are primarily focusing the NRI investor base in the U.S., U.K. and Asia Pacific. For NRIs who are considering settling down in India in future, Bangalore happens to be the most preferred choice. The booming IT sector is the major reason that is driving the NRIs to invest in Bangalore real estate. On the other hand, Ahmedabad is considered as a safe investment option owing to its lenient government policies regarding NRI investment in real estate. The city has been the most stable market pertaining to demand and good absorption of both residential and commercial properties. Pune takes the third position in the list of NRIs with 30.5% expected growth rate, Chennai at 28%, and Goa with 23%. Surprisingly, Delhi bags only 21% NRI interest in terms of property purchase. Previously, Non Resident Indians had inhibitions about investing in India’s...

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