This combination of high returns, secure investment avenues, and expanding growth potential makes the Indian real estate market an appealing choice for NRIs in the years ahead
The Indian real estate sector is witnessing a significant surge in interest from non-resident Indians (NRIs), driven by promising growth prospects, constructionweekonline.in reported.
Currently valued at approximately $477 billion, the industry is projected to reach $1 trillion by 2030, presenting a lucrative opportunity for investors. According to a NoBroker report, NRI investments in Indian real estate grew from 10% in 2019 to 15% by 2023, and this figure is expected to climb to 20% by 2025. This upward trend is fueled by India’s expanding infrastructure, economic growth, and high potential for returns.
KEY INVESTMENT OPTIONS FOR NRIS:
NRIs have a range of investment opportunities in the Indian real estate market, each offering distinct advantages:
Residential Properties
The demand for residential properties in metropolitan cities and urban growth areas remains robust. Many NRIs opt for this investment, given its stability and the potential to generate rental income while benefiting from long-term property appreciation. Around 80% of Indian developers foresee a rise in NRI home purchases in 2024 due to favorable market conditions. Notably, 26% of NRI buyers seek properties over INR 1 crore, with 54% preferring gated communities for enhanced security and comfort.
Office Spaces
Commercial real estate, particularly corporate office spaces, is another popular option for NRIs. With India emerging as a global hub for IT and multinational corporations, cities like Bangalore, Hyderabad, and Gurgaon offer high rental yields. Approximately 52% of NRIs invest in office spaces to diversify their portfolios, leveraging the growing corporate presence in these regions.
WHY 2023-2025 IS AN IDEAL TIME FOR NRI REAL ESTATE INVESTMENTS:
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The period between 2023 and 2025 is an opportune time for NRIs to invest in Indian real estate
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The market, currently valued at $0.33 trillion, is projected to grow to $1.04 trillion by 2029
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Urbanization, infrastructure projects, and increasing demand across residential, commercial, and resort segments make this an ideal moment for NRIs to invest
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The evolving market presents ample opportunities for long-term gains, ensuring that NRIs can maximize their investment potential in India’s real estate sector
Retail Outlets
The Indian retail sector’s expansion, coupled with the rise of e-commerce, has made retail space investments attractive. NRIs can rent out retail outlets as a steady source of income or utilize them for personal business purposes. With India’s retail demand projected to require 55 million square feet of Grade A mall space, investing in retail outlets offers substantial returns, capitalizing on changing consumer habits and market confidence.
Warehouses
The logistics and warehousing sectors are booming, driven by the rise of e-commerce and the need for efficient supply chains. By 2027, the Indian warehousing market is expected to reach $34.99 billion, growing at a compound annual rate of 15.64%. NRIs can benefit from strong returns by investing in warehouses, as the sector continues to expand alongside the growth of e-commerce.
Resort Homes
Resort homes have emerged as a trendy and profitable investment option for NRIs. These properties, located in scenic areas, not only offer attractive returns but also serve as personal vacation spots. Investors can enjoy steady rental income by leasing these properties to vacationers, while property appreciation in tourist areas adds further value. Many resort homes come with hassle-free maintenance as part of managed communities, offering peace of mind to NRIs living abroad.
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