The sector’s attractiveness is bolstered by structural and policy reforms that have improved transparency and ease of doing business, leading to a remarkable increase in foreign institutional inflows
-
The GCC, home to approximately 7.5 million NRIs and expatriates, represents significant potential for further growth in this market segment
India’s real estate sector is experiencing a substantial uptick in investments from non-resident Indians (NRIs), marking a pivotal change in market trends. Over the past year, the share of residential sales attributed to NRIs has surged, now comprising nearly 25% of total sales for major developers, a significant increase from the pre-pandemic levels of 7-10%.
This growth is primarily driven by key markets including the United States, Singapore, the UAE, Australia, and Saudi Arabia. Real estate developers are actively responding to this trend by establishing dedicated teams to cater to NRI buyers. For example, DLF’s recent project in Gurugram recorded that 25% of its sales came from NRIs, contributing to an overall NRI sales figure of ₹3,400 crore for the fiscal year 2023-2024. The appreciation of the dollar against the rupee has further incentivized NRIs to invest in Indian real estate, making it an attractive proposition.
-
In regions like the Delhi NCR and Mumbai Metropolitan Region (MMR), NRI investments are particularly robust, although smaller cities are also witnessing increased demand due to their cosmopolitan lifestyles and thriving start-up ecosystems
-
NRI buyers typically favor properties priced above ₹1 crore, indicating a preference for high-value investments
Industry leaders emphasize the increasing opportunities for NRI investors in the Indian real estate market. There has been a noticeable rise in the number of NRIs seeking to purchase homes in India, leading to heightened demand. Luxury residential projects, like The Presidential on the Dwarka Expressway, have seen significant interest from NRIs, particularly from the United States, the United Kingdom, the UAE, Australia, and Singapore.
Surveys by India Sotheby’s International Realty indicate a growing intent among high net-worth individuals (HNWIs), including many NRIs, to purchase luxury real estate in India within the next two years. The rupee’s depreciation against the dollar continues to make Indian real estate a compelling investment for NRIs.
Reports suggest that NRI investments are expected to account for 20% of India’s real estate market by 2025, driven by both economic factors and emotional ties to the homeland. The availability of high-quality real estate further strengthens the investment rationale.
In regions like the Delhi NCR and Mumbai Metropolitan Region (MMR), NRI investments are particularly robust, although smaller cities are also witnessing increased demand due to their cosmopolitan lifestyles and thriving start-up ecosystems. NRI buyers typically favor properties priced above ₹1 crore, indicating a preference for high-value investments.
The sector’s attractiveness is bolstered by structural and policy reforms that have improved transparency and ease of doing business, leading to a remarkable increase in foreign institutional inflows. The GCC, home to approximately 7.5 million NRIs and expatriates, represents significant potential for further growth in this market segment.
Post-pandemic, the share of NRIs in local residential real estate has more than doubled, highlighting the enduring appeal and growing significance of NRI investments in India’s real estate market.
***********************************************************
Readers
These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.
Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world. We have taken a small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.
Please help us to keep our journalism independent and free.
In these difficult times, running a news website requires finances. While every contribution, big or small, will make a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.
For more information: pravasisamwad00@gmail.com