Real estate developers have resumed promoting high-end properties to investors and homebuyers in the US, UAE, the UK and Southeast Asia as they start witnessing traction in these markets, partly driven by a depreciating rupee.
According to a recent industry report, NRI investments in Indian real estate may rise to $14.9 billion in FY22.
“We have observed an increasing demand and inquiries from NRIs, especially from the GCC, USA, and UK regions, as well as Singapore. These buyers are targeting big-ticket luxury real estate investments in the market as a result of the recent depreciation in the rupee, stricter regulatory oversight, and increased transparency and eased investment norms,” said Reeza Sebastian Karimpanal, president-residential, Embassy Group.
According to a report, India’s international UHNI population is mostly made up of NRIs, and about 55% of those who own real estate in India will buy a second home.
Realty developer DLF has also sent its team to Dubai, Hong Kong and London as it intends to double the share of NRIs in buying super luxury properties.
Almost 15% of DLF’s super luxury project Camellias buyers are NRIs and they have also shown interest in the company’s recently launched project ‘The Grove’, which was sold out completely in just eight days, said a senior DLF executive.
India’s luxury housing market caters to the needs of NRI homebuyers through products including uber-luxury villas, villaments, expansive condominiums and branded residences.
“The appreciation of the US dollar against the Indian rupee is making it easier for NRIs to invest in real estate here. The investment is cost-effective when compared to the dollar to rupee conversion and the returns are attractive with the market achieving economic stability post-Covid,” said Sriram Mahadevan, managing director, Joyville Shapoorji Housing.
NRI investors are mainly looking for aspirational and luxury homes, which are being offered by the industry in large numbers now. “NRIs make up a huge target audience for the community of developers. For the latter, it makes sense to invest time and money in sending teams abroad purely for the purposes of overseas marketing to NRIs, because this is a global demographic that is crucial for the success of anyone operating in the real estate industry,” said Nitin Chopra, founder & CEO, Range International Property Investment.
Developers have started conducting roadshows, participating in real estate exhibitions, putting in place special tie-ups with established channel partners and also implementing digital outreach programmes.
“The yearning for security provided by their home country, coupled with the value depreciation of the rupee has given NRIs stronger purchasing power for real estate in India. Investing in luxury properties comes with the advantages of capital appreciation, good rental yields and continuity to an NRI’s global lifestyle,” said Karimpanal.
