NRIs decide to dispose of properties in West Asia to invest in India.
Real estate experts analyse that the raging war between Israel and Hamas would benefit the Indian real estate sector from the NRI investment perspective.
The NRIs feel that real estate not only in West Asia, which is seething with clashes, but also in the US and European markets is unsafe for them and are confident of investing in Indian real estate as it would be a safe bet for them.
In this backdrop, many NRIs are keen to invest in India. Salman Qureshi, who resides in Dubai, bought property for Rs 11 crore in 2017 and sold it for Rs 13.5 crore. The prices of real estate in Dubai are appreciating fast.
“Had I waited for some more time, I would have earned an additional 40% in revenue. But keeping in mind the market conditions in West Asia, I decided to sell this property and invest the proceeds in Bangalore”, reveals Qureshi about his investment plans.
It is reliably learned that the NRIs living in Dubai have decided to dispose of their properties in West Asia because of the unstable market conditions and have decided to invest in Bangalore, Pune, and Hyderabad.
In the wake of a spurt of demand for properties from NRI investors, the country is going to polls in 2024, and the prices of real estate are increasing. The exchange value is low.
Anarock Group Bangalore head Asish Sarma has predicted that investments in the real estate sector will mainly come from NRIs in Dubai, the US, the UK, and other West Asian countries.
During 2018–2022, the flow of investments into the domestic real estate market, especially from Dubai, was $2.7 billion. However, last year alone saw the flow of investments to the tune of Rs 565 million.
After the Russia-Ukraine war, many NRIs evinced interest in investing in real estate in Dubai and Bahrain. Because of the relative instability in West Asia, they are inclined towards investing in India.
They attribute this trend to the fact that the Indian micromarket is conducive to making long-term investments, besides providing better safeguards for the capital invested.
The NRIs seeking to invest in India invest between Rs 80 lakh and Rs 1 crore. The same NRIs are prepared to invest between Rs 2 crore and Rs 4 crore in Dubai, he said.
Rental income in Dubai appreciates annually by 8%, whereas in Bangalore, the appreciation would range between 3% and 3.5%.
The capital appreciation in Bangalore would be between 8% and 12%, as opposed to the appreciation of 12% to 15% in Dubai. In Dubai, property prices escalated between 15 and 18 percent during the past six months. In downtown Dubai, the prices of some prime properties appreciated by 30%.
As the Dubai market attracts more and more investors from all over the world, the properties there always appreciate. A single-bed room apartment sells for Rs 1.5 crore to Rs 1.8 crore, while the prices of double-bed room flats cost between Rs 2.5 crore and Rs 10 crore.
This website uses cookies.