“Apna desh apna desh hota hai!” Ask any NRI, and this is a dialogue they’ll probably swear by. The recent trends no doubt highlight the demand for real-estate investments created by non-resident Indians (NRIs) rushing to buy homes in India.
The pandemic reinforced the importance of having your own home. In spite of the worst of COVID-19 having passed now, NRIs have not forgotten the risks associated with living abroad during a severe pandemic. This has pushed investments in the Indian residential market by this group.
In a survey by a leading real estate firm, Hyderabad, NCR, and Bengaluru have been highlighted as the top three destinations for NRI housing when they pick assets in India. MMR (Mumbai Metropolitan Region) ranked fourth on NRIs’ wish list. The sample size for this survey included 5,500 respondents, including NRIs from the US, Canada, Gulf, Europe, and various other Asian countries.
Bengaluru, Pune, and Chennai were the top choices for most NRIs in a similar poll last year.
On the other hand, the pre-COVID favourites (2019) were Bengaluru, Hyderabad, and NCR.
A major reason behind the same is the depreciation in the value of the rupee combined with buoyancy in the Indian real estate market. Non-residents worldwide find it difficult to find a place to live, and this continues to be an aspect to worry about them. They, however, stand to gain significantly from the rupee’s decline against the US dollar despite the rising mortgage interest rates and asset prices back home.
Interestingly, more NRIs prefer investing in Indian real estate over stocks, mutual funds, gold, and even fixed deposits, as the reports suggest. An H1 2022 survey showcases that 71% of NRI respondents saw Indian housing as the best investment bet. This figure is higher than the 55% recorded in the pre-COVID edition.
Noticeably, there has been a 15-20% increase in the NRI demand for housing in the first nine months of 2022 when compared to the same period in 2021. Over 2.73 lakh homes were sold in the top 7 locations between January and September this year. NRIs usually buy 10-15 % of all homes sold in any quarter.
A number of large IT companies and IT-driven start-ups today continue to operate using a hybrid work approach. The favourable change charge has driven the demand for bigger homes by locals and NRIs alike. According to industry studies conducted for the first quarter of 2022, 77% of NRI respondents planned to buy larger homes, i.e., either 3 BHKs or 4 BHKs. Only 22% of respondents were looking for a 2-bedroom home.
More than 60% of NRI respondents are choosing luxury homes that cost between 90 lakh and 1.5 crore. A poll last year highlighted that 59% of NRIs preferred expensive homes priced between INR 1.5 and INR 2.5 crore.
The current scenario of the international economy and a depreciating rupee in the international markets are significant draws for non-resident Indians (NRIs) to invest in their country of origin. The recessionary dynamics that affect the global market are pushing NRIs to think of moving back to their roots and homes. As the Indian economy is markedly better off, this is a choice many would opt for in the coming months.
At RGS Realty, we strive to help our customers make choices that are best for them. Our homes with high investment potentials are the perfect choice for residents and NRIs alike, given their apt locations and growth opportunities. Visit https://www.rgsrealty.com/ today to know more!