These investments are not solely motivated by financial considerations but are also deeply influenced by the emotional bonds that NRIs maintain with their country of origin.”
— Saurabh Garg, Co-founder & Chief Business Officer at NoBroker.com
Between 2019 and 2020, NRIs constituted 10% of total real estate investments in India. This figure has consistently increased, reaching 15% today, and is projected to reach 20% by 2025, as per a NoBroker survey report, according to an article in Mint.
The contribution of Non-Resident Indians (NRIs) to the Indian real estate sector has risen significantly, with their investments steadily rising over the past five years, ‘The NRI Real Estate Report 2023’, by NoBroker.com showed.
Between 2019 and 2020, NRIs constituted around 10 percent of the total real estate investments in India. However, this figure has consistently increased, reaching 15 percent today, as per the survey report. It further projects that by 2025, NRIs are expected to contribute to 20 percent of the Indian real estate market.
“This surge is chiefly driven by a confluence of factors such as increased rental yield, the continued depreciation of the Indian rupee, favourable government policies, and the resilience shown by the Indian real estate sector in the face of adversity. These investments are not solely motivated by financial considerations but are also deeply influenced by the emotional bonds that NRIs maintain with their country of origin,” said Saurabh Garg, Co-founder and Chief Business Officer at NoBroker.com.
THE NRI REAL ESTATE REPORT 2023 FOCUSES ON:
Top Investment Destinations: Bangalore and Mumbai have emerged as preferred destinations for NRI buyers due to factors like a cosmopolitan lifestyle, thriving startup ecosystems, and dynamic real estate markets. In fact, Bangalore is the top pick for 29 percent of NRI investors, closely followed by Mumbai, preferred by 24 percent of NRI buyers.
Shift in Demand: Demand for 3BHK units has surpassed that for 1BHK and 2BHK units, reflecting the preference for more spacious living spaces. The demand for holiday homes has also increased in the past year, with property management services gaining ground.
High-Value Investments: Interestingly, 26 percent of NRI buyers seek properties with budgets exceeding INR 1 crore, indicating a growing focus on premium and luxury real estate options. Besides this, 40 percent of NRIs said they are aligning their real estate aspirations with budgets exceeding INR 1 crore. Further, 54 percent of respondents show a strong inclination towards investing in gated communities for safety and convenience.
Challenges faced: The lack of information and transparency is a major concern for 82 percent of NRI buyers, highlighting the need for improved accessibility and clarity in the property purchase process.
Property Management Services: A total of 52 percent of NRI property owners express a desire for property management services to oversee their real estate investments effectively.
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