Premium residences by renowned developers with good construction records, ready to move in or nearing delivery are the most sought after by expat Indian buyers
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UAE and other GCC-based non-resident Indians (NRIs) have been investing in the Indian property market in a big way. This is largely due to the major drop in rupee value against Dirham and the rising demand in the home property market. This, despite the rising interest rates. Premium residences by renowned developers with good construction records, ready to move in or nearing delivery are the most sought after by expat Indian buyers.
The UAE Dirham has strengthened against the Indian rupee by more than 10 percent in recent months, fetching INR 22.16 per Dirham against about INR 20 a few months ago. With the rise in the Dirham against the Rupee, NRIs now see more value in the Indian real estate market, Sajai Jacob, CEO-GCC of leading real estate consultancy Anarock Group, was quoted saying to Arabian Business.
Jacob is not the only alone. According to senior executives at real estate companies in India, there has been a huge growth in demand from expat Indians. Indians from the Middle East were purchasing property for investment, rather than for end-users.
Tier 1 cities like Mumbai, Bangalore and Delhi have been the hotspots for investments but there has been a growing interest in the upcoming smart cities identified by the Indian government such as Kochi (Kerala), Ahmedabad (Gujarat), Lucknow (Uttar Pradesh), Chandigarh (Punjab) and Indore (Madhya Pradesh) for NRI investments
Jacob went on say, “Initially, the real estate is bought as an investment and eventually when the expats [from the Gulf region] move back, it may be for end use or as an additional income provider through rental yields.”
Speaking about the rising interest rates, Jacob was quoted saying that “until the home loans are below 9 percent interest rate, there seems to be no reason for a slowdown in the Indian real estate market”.
He said NRIs were expected to continue to invest in the home market as their expectations of the growth in the property market override the concerns over interest rate hikes.
Micro markets like Yelahanka and Whitefield in Bangalore, central and western suburbs in Mumbai and New Gurgaon near Delhi are among the prime preference areas for expat investments.
Tier 1 cities like Mumbai, Bangalore and Delhi have been the hotspots for investments but there has been a growing interest in the upcoming smart cities identified by the Indian government such as Kochi (Kerala), Ahmedabad (Gujarat), Lucknow (Uttar Pradesh), Chandigarh (Punjab) and Indore (Madhya Pradesh) for NRI investments.
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