- They constitute 15 % of the total investments in the first half of 2023
- Flow of investments is likely from Gulf countries
With the depreciation of rupee value, the investment based property purchases are on the rise. Because of the trend, the NRI investments in Indian property market have been increasing steadily. Compared to the NRI investments in the first six months of last year, during the corresponding period this year the investments grew by 15%. The forthcoming festival season is likely to see more flow of investments into the property market especially from the Gulf region, according to predictions from experts.
Indian property developers offering attractive packages in Indian cities and offering discount in prices and launching luxury projects globally, supporting the customers in choosing the right property and other aspects have been contributing to the increased flow of NRI investments into the domestic property market, according to the experts.
Compared to the demand during 2022 and 2023, the NRI investments, going by the current trend, have created a favourable impact and predicted to increase, according to Anarock Middle-East and North Africa MD Morgan Owen. He said that the flow of investments during the first half of the current year registered an increase from 10% to 15%. The NRI investments especially from the Gulf region have increased. The NRI investments in DLF projects have said to have been up by 15% top 20%.
The number of NRIs who preferred to own a house in India has increased. The residential houses market this year received unprecedented support from the NRIs this year. The emotional attachment of the NRIs, especially in the post-Covid era, propelled them to own property in mother land. As per an Anarock study, during the first six months the number of residential units sold in seven main cities across the nation registered an increase by 2,29,000 units.
The share of the NRIs in this is put at 10% to 15%.
NRIs have been longing to own residential units in tech cities like Hyderabad and Pune. The cities have been on the top priority among the Gulf NRIs in the choice of their favourite destinations. The cities have cosmopolitan culture. Therefore, they are being drawn to the two cities. Similarly, the NRIs have been evincing interest to buy properties from luxury, branded and major developers. Further, the NRIs also have set their sights on cities like Chandigarh, Panchakula, Kocchi and other developing cities. They have been choosing the cities to locate their holiday homes and second homes.
