Major cities like Gurugram are witnessing substantial traction, with NRI investments amplifying residential sales
Amidst the evolving landscape of India’s real estate market, a significant surge in investments from Non-Resident Indians (NRIs) is reshaping the sector’s dynamics. Once a modest fraction of the market, NRIs are now becoming pivotal players, contributing nearly a quarter of the total residential sales at prominent developers—a remarkable leap from the pre-pandemic figures of 7-10%. This transformation, as reported by the Economic Times, underscores the resilience and attractiveness of India’s property market despite global uncertainties.
Major cities like Gurugram are witnessing substantial traction, with NRI investments amplifying residential sales. For instance, DLF, one of the country’s leading developers, witnessed a staggering 25% share (approximately Rs 1,800 crore) in NRI sales for its Privana South project in Gurugram. The trend extends beyond DLF, with industry sources revealing that NRI investments surpassed Rs 3,400 crore during the fiscal year 2023-2024, constituting nearly 20% of total sales across the sector.
“The US has emerged as a frontrunner in NRI demand and transactions, followed closely by Singapore, the UAE, Australia, and Saudi Arabia,” explains Saurabh Garg, co-founder & chief business officer at NoBroker.com. This diversification of investor origins reflects a global confidence in India’s real estate market and underscores the sector’s resilience amid economic fluctuations.
Amar Sarin, MD and CEO of TARC Ltd., highlights the pivotal role of NRIs in driving growth, with substantial investments flowing from regions like Dubai, Abu Dhabi, London, Singapore, Hong Kong, and the US. Notably, NoBroker.com has facilitated significant transactions, including deals exceeding Rs 2 crore from the US and multiple transactions surpassing Rs 4 crore, showcasing the robust interest from overseas buyers.
The burgeoning NRI investments in India’s real estate sector not only signify a vote of confidence in the market’s potential but also present lucrative opportunities for developers and investors alike. As overseas buyers continue to play a pivotal role in shaping the industry’s landscape, collaboration and innovation are poised to drive sustained growth and resilience in the Indian real estate ecosystem
Factors such as favorable exchange rates, geopolitical shifts, and evolving consumer preferences are contributing to the surge in NRI investments. Kalyan Chakrabarti, CEO of Emaar India, underscores the allure of owning property in one’s homeland amidst post-pandemic uncertainties, emphasizing the growing sentiment toward homeownership among NRIs.
Moreover, a recent survey conducted by India Sotheby’s International Realty indicates a growing interest among High Net-Worth Individuals (HNIs), many of whom are NRIs, in luxury real estate acquisitions within India over the next two years. This reflects a broader trend wherein NRIs perceive the current market conditions as opportune for investing in premium properties back home.
The appreciation of the US dollar against the Indian rupee further sweetens the deal for NRIs, enhancing the affordability and attractiveness of Indian real estate assets. Consequently, the share of NRIs in the local residential real estate market has more than doubled since the onset of the pandemic, signaling a paradigm shift in investment patterns and contributing significantly to the sector’s growth trajectory.
In essence, the burgeoning NRI investments in India’s real estate sector not only signify a vote of confidence in the market’s potential but also present lucrative opportunities for developers and investors alike. As overseas buyers continue to play a pivotal role in shaping the industry’s landscape, collaboration and innovation are poised to drive sustained growth and resilience in the Indian real estate ecosystem.
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