Evolving demand: Primary driver of NRI investment in Indian real estate

Thanks to increasing prosperity among the Indian diaspora around the world, the Real Estate Sector of India has witnessed a growing and evolving demand amongst the ultra-rich NRIs. Their preferences, fuelled by an interconnected world, increased availability of sustainable options, world class infrastructure, and advantageous Price Differentials, make Real Estate investment in India a promising purchase for NRIs on multiple fronts. Per recent reports, there has been a 35% YOY rise in investments by NRIs in the Indian residential real estate market.

Growing Interest in Indian real estate

NRIs at large have witnessed a rise in income with higher paying jobs and flourishing businesses overseas. They are therefore looking at India as a great opportunity for real estate investment given the positive economical outlook for the country. These homes are lucrative rent generating assets for them as appreciation in India is higher than the other markets. The currency advantage also remains a catalyst to encourage investments from other countries.

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There is another segment of NRIs who are intending to return to India eventually. They are therefore buying homes in their hometowns or towns they intend to settle in. The India growth story is an intriguing avenue therefore many Indians living overseas.

Evolving Preferences

There was a time when holiday homes were seen as indulgent purchases. Today, they seem to be the norm for individuals looking to spend their time doing different things in different parts of then world. Access to the inner lives of the ultra-luxurious through the influencer media space has opened up possibilities among the wealthy for building their dream homes. Many NRIs who have already purchased or own property in India are also favouring second, and even third home purchases.

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Ease of management and technological advancements

Indian real estate segment has evolved to incorporate modern technology. There are many service providers who are available to manage their assets and provide. They can monitor their properties through CCTV remotely. Even payments and earnings can be paid or accessed digitally that makes the investment far more easier to manage and hassle free.

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Infrastructure (Physical and Digital)

As echoed in this year’s budget, the Government of India has been on an infrastructure development spree. The convenient physical infrastructure available today in many of India’s cities, has led to many NRIs with doubts about Indian infrastructure, overcome their inhibitions. Digital infrastructure has also undergone tremendous modifications giving NRIs the confidence to move back to India with their entire families while not causing any disruptions in their lifestyles.

Sustainable Options

Today, India is at the forefront of global discussions on combating climate change and achieving its SDG targets. This prosperity is a result of innovation across the board in sustainability related developments. NRIs with an environmental conscience can buy the most luxurious abodes in the world while taking care to not damage local ecosystems, right here in India.

When NRIs purchase houses in India, the investments support the country’s economy. Foreign investing is an important source of funding for the Indian economy. NRIs can now readily participate in the Indian real estate industry and benefit from its rapid expansion and dynamism.