(Commonwealth) _ The Indian real estate market is experiencing a notable uptick in investments from Non-Resident Indians (NRIs), with proptech unicorn NoBroker projecting that by 2025, NRIs will comprise a substantial 20% of the country’s real estate sector investments. This signals a substantial rise from the 10% observed in 2019–2020, showcasing an increasing inclination among NRIs towards long-term investments in the Indian property market. This trend not only highlights the attractiveness of the Indian real estate sector but also underscores the potential for sustained growth as NRIs play an increasingly significant role in shaping the market dynamics. Over the past year, Non-Resident Indians (NRIs) have demonstrated increased interest and active involvement in India’s real estate scene. Bengaluru and Mumbai have emerged as their preferred investment destinations, with 29% of respondents favoring the former and 24% choosing the latter. Bengaluru’s allure is attributed to its cosmopolitan lifestyle, renowned educational institutions, and a flourishing startup ecosystem, collectively contributing to a notable upswing in rental yield. The city’s dynamic and diversified offerings make it particularly appealing to NRIs seeking investment opportunities that align with contemporary lifestyle preferences and present the potential for robust returns in the form of rental income.
Meanwhile, Mumbai’s dynamic real estate market, which includes a spectrum of commercial, residential, and luxury properties, holds significant appeal for NRIs seeking diverse investment opportunities. The city’s multifaceted property landscape provides NRIs with a range of choices, allowing them to explore various segments based on their investment goals and preferences. Mumbai’s reputation as a vibrant financial and cultural hub, coupled with its diverse real estate offerings, positions it as a strategic destination for NRIs looking to engage in the Indian real estate market across different sectors. The report highlights a discernible shift in the configuration preferences of NRI buyers, notably favoring 3 BHK units over 1 and 2 BHK units. This trend underscores a growing preference for more spacious and versatile living spaces, aligning with evolving lifestyle choices and heightened expectations. Additionally, a significant 26% of NRI buyers are actively seeking properties with budgets exceeding ₹1 crore, signaling a pronounced inclination to invest in higher-value assets. This preference for larger, upscale residences reflects the evolving aspirations and financial capabilities of NRIs in the Indian real estate market, contributing to the changing landscape of property demand and investment trends.
Despite the discernible surge in NRI investments in the Indian real estate market, persistent challenges within this segment are evident. The report emphasizes that a substantial 82% of NRI buyers identify a lack of information and transparency as significant obstacles when navigating the complexities of the Indian real estate market. This underscores the urgent need for enhanced accessibility and clarity in the property purchase process. Addressing this informational gap is crucial to instill greater confidence among NRIs and facilitate smoother transactions. Implementing measures to improve transparency will not only attract more NRI investments but also contribute to the overall growth and stability of the Indian real estate market. The increasing interest of NRIs in India’s real estate market not only signals a boost to the sector but also emphasizes the imperative for the industry to tackle existing challenges. Elevating information dissemination and transparency is crucial, not just to attract more NRI investments but also to foster the overall growth and stability of the Indian real estate market. As NRIs increasingly turn their attention to India for long-term investments, the industry’s responsiveness to their needs and concerns will play a pivotal role in shaping the future landscape of real estate in the country. This adaptability and commitment to addressing challenges will be key in ensuring sustained growth and fostering investor confidence.
