The survey report states that this percentage has risen steadily, to 15 per cent as of now and predicts that NRIs will account for 20 per cent of the Indian real estate market by 2025
The share of Non-Resident Indians (NRIs) in the Indian real estate market has increased dramatically over the last five years due to their consistent investment growth, according to ‘The NRI Real Estate Report 2023’ published by NoBroker.
NRIs made up about 10 per cent of all real estate investments in India between 2019 and 2020. Still, the survey report states that this percentage has risen steadily, to 15 per cent as of now and predicts that NRIs will account for 20 per cent of the Indian real estate market by 2025.
“A number of factors, including higher rental yield, the Indian rupee’s ongoing depreciation, supportive government policies and the real estate industry’s tenacity in the face of hardship are primarily responsible for this surge. In addition to financial considerations, the emotional ties that the NRIs have with their home country play a significant role in these investments,” said Saurabh Garg, co-founder and chief business officer of NoBroker.com.
Thanks to their vibrant startup ecosystems, dynamic real estate markets and cosmopolitan lifestyles, Bangalore and Mumbai have become popular choices for foreign direct investment (NRI) buyers. Bangalore is the top choice for 29 per cent of NRI investors, with Mumbai coming in second with 24 per cent of NRI buyers.
The desire for larger living areas is evident in the demand for 3BHK apartments, which has outpaced that for 1BHK and 2BHK apartments. Over the past year, there has been a rise in demand for vacation homes and property management services have become more popular. It’s interesting to note that 26 per cent of NRI purchasers look for homes with budgets over Rs 1 crore, suggesting a growing preference for upscale and luxurious real estate options.
Due to technology, higher rental yields and emotional connections to India, NRI interest in Indian real estate has increased. Technology has also facilitated the purchase, sale and management of real estate, lowering dependency on outside parties and fostering transparency. Overall, there is an increasing need for property management services to give NRIs hassle-free property management.