India calling: NRI investments in Indian real estate have doubled

After the Covid-19 pandemic, the share of non-resident Indians (NRIs) in the Indian property market has doubled and almost 20 per cent of the sales for many real estate developers are now coming from outside the country, according to a report in The Economic Times.

The share of NRIs in the sales of premium and luxury products has more than doubled to 20 per cent, industry experts said. Before the coronavirus pandemic, NRIs used to account for less than 10 per cent of sales

In its Q4 earnings call, DLF said that it will place increased emphasis on the NRI market. "The NRI market is looking for good real estate investments to make for the future," Aakash Ohri, group executive director and chief business officer, said on the call. "The US is one of our biggest markets and we also have buyers from the Middle East and Southeast Asia. Last year, there was a concerted plan from Q1 to target NRIs and this year again, we will continue the trend."

 

A significant number of high net-worth individuals (HNIs), many of them NRIs, are planning to buy luxury real estate in India in the coming two years, according to a recent survey by India Sotheby's International Realty. They see it as a good time to buy larger properties back home. The strength of the dollar against the Indian rupee has facilitated the process for NRIs to invest in properties in India. NRIs have been buying condominiums, branded residences, luxury villas, and villaments.

"NRIs have seen the growth in Indian real estate during the last two years," Vishal Raheja, managing director, InvestoXpert.com, a real estate brokerage, said.  "For the credible developer, there is no shortage of NRI buyers and to cater to the demand, we have also opened an office in Dubai. Many developers have also started marketing in Dubai, Singapore, and other important destinations.”

An uncomplicated tax regime, indexation benefits for properties held in India, advantageous currency changes, and digitisation of procedures have spurred the number of NRIs looking to invest in Indian real estate.

"The pandemic has acted as a catalyst, propelling the NRI share in the sector to double its pre-pandemic levels," Amit Modi, director at Noida-based County Group, said. "The Indian real estate market is witnessing the changing preferences of NRIs.”

Delhi-NCR, Mumbai, and Bengaluru have become the preferable places for NRIs to invest in properties due to the presence of premium, luxury, and super luxury real estate projects.