Among the key markets, Mumbai, Chennai, and Bengaluru are the most preferred followed by Pune, Ahmedabad, and Hyderabad with premium apartments and villas in high demand.
It is expected that by the year 2025, 20 percent of the real estate sector investments in this metro city will be made by NRI investors. (Image: iStock/ET Now News)
Investment in the real estate market has always been the first choice for the Non-Resident Indians (NRIs). The government’s mission to provide housing for all has impeded this sector. Among the key markets, Mumbai, Chennai, and Bengaluru are the most preferred followed by Pune, Ahmedabad, and Hyderabad with premium apartments and villas in high demand. Of these, Bengaluru has emerged as the top real estate investment destination for NRIs as the city offers convenience in all aspects, better connectivity, and a vibrant lifestyle.
Darshan Govindaraju, Director, of Vaishnavi group said that the increasing interest of NRIs in Indian real estate can be attributed to the gloomy global markets and fluctuations in high-yielding instruments such as Bitcoin propelling them to invest in markets with strong fundamentals. Highlighting the ‘The NRI Real Estate Report 2023’ report, he added that the contribution of NRIs to the Indian real estate sector has risen significantly. He also expected that the NRIs will account for one-fifth of all investments into the sector by 2025 from 10 percent in 2020.
“These investments are primarily undertaken from a rental income perspective and to have an early mover advantage in the rapidly growing luxury residential sector to yield rich returns later on. Furthermore, the development of luxury and ultra-luxury projects in real estate is attracting investors, marking a stark shift from pure-play land investments preferred by NRIs earlier,” says Govindaraju.
In residential projects, the NRIs prefer the luxury segment. Thus, Bengaluru, being the IT hub of the country, is one of the first choices for the NRIs. It is expected that by the year 2025, 20 percent of the real estate sector investments in this metro city will be made by NRI investors. Bhavesh Kothari, Founder and CEO, of Property First has identified North Bengaluru as a prospective area to invest in properties.
“North Bengaluru is a prospective area to invest in properties, primarily because the area offers a mixed portfolio of commercial and residential assets, thus providing more options to choose from. Besides, the improving infrastructure and connectivity to business and IT hubs make it an ideal location to invest,” Kothari added.