Bengaluru, Karnataka Dec 29, 2023 (Issuewire.com) – Real Estate in India has always grabbed the attention of Non-Resident Indians (NRIs) who wish to diversify and expand their investment portfolio. Over the last couple of years, India has witnessed increased interest from NRI customers for property purchases for self-use as well as for investment. An extensive survey conducted by NoBroker – India’s first proptech unicorn and a one-stop shop for all real estate needs, suggests that more and more NRIs living in Canada, USA, UK, France, Germany, UAE, Singapore, and Australia are keen to invest in residential and commercial properties in their homeland.
This surge is driven by factors such as increased rental yield, depreciation of the Indian rupee, favourable government policies, and the resilience shown by the Indian real estate sector in the face of adversity (COVID) and economic uncertainty. As the country’s real estate market continues to evolve, Nobroker’s NRI real estate report 2023 delves into the key drivers and implications of NRI investments, shedding light on the dynamics of this increasingly vital segment.
A. Real Estate in India – A Favourable Investment Avenue for NRIs
The contribution of Non-Resident Indians (NRIs) to Indian real estate has witnessed notable and steady growth over the past few years. In the fiscal year 2019-2020, NRIs were estimated to account for approximately 10% of the total investments in the Indian real estate market. By 2025, it is projected that NRIs will account for 20% of the total investments in residential and commercial real estate in India.
B. NRIs Prefer to Invest in Tier-1 Metro Cities
The NRI real estate report published by NoBroker highlighted that NRIs preferred to park their investments in metro cities in India. Bangalore preferred by 29% and Mumbai preferred by 24% are the most favoured cities for NRI buyers, followed by Hyderabad (18%), Chennai (14%), Pune (11%), and Delhi NCR (4%). The report also highlights an exciting sentiment: most of the surveyed NRIs wish to buy 3-bedroom units over 1 and 2 BHK apartments. The demand for 3BHK units also reflects a growing preference for spacious and versatile living spaces, possibly driven by evolving lifestyle needs, such as the need for dedicated home offices, guest rooms, or additional living areas.
C. NRIs look for Luxurious and Premium Properties.
The data also suggests that many NRI investors are increasingly inclined towards high-value investments, signifying a penchant for premium and luxury real estate options. Intriguingly, 26% of NRI buyers actively seek properties with budgets exceeding INR 1 crore. Almost 54% of respondents expressed a solid inclination to invest in gated communities, emphasising the allure of safety, convenience, amenities, and community living.
D. Real Estate Investment in India by NRIs Boosted by Property-Tech Solution
As per the survey conducted by NoBroker, it is evident that obtaining accurate information and sound investment advice is a significant challenge for a vast majority, with over 82% of respondents acknowledging this concern. Over 42% of respondents expressed concerns related to trust issues with offline channels, emphasising the importance of establishing a trustworthy and reliable relationship between property seekers and property owners. The digital landscape and property-technology platforms are playing a significant role in shaping the investment choices of NRIs. A striking 46% of those surveyed are turning to real estate websites to search for property for investment in India.
E. NRI Real Estate Investors Want Reliable Property Management Services
As per the NoBroker NRI survey, 63% of NRI respondents have said that property management is a considerable challenge. Many rely on their local family members or third parties. This process is time-consuming and adds a lot of dependencies on third parties. Of this, 52% of respondents have expressed a clear need for professional assistance in property management.
You can click here to read the full NoBroker NRI report which highlights more interesting trends about the future of NRI investment in Indian real estate.
NoBroker.in is India’s premier property tech unicorn, and a one-stop-shop for everything related to real estate. It is not just a property discovery platform but a transaction platform that provides the most accurate real-time data. Founded by IIT and IIM alumni Akhil Gupta, Amit Agarwal, and Saurabh Garg, it is backed by marquee investors such as Tiger Global, General Atlantic, Google, Elevation Capital, and more.
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