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In recent years, the contribution of Non-Resident Indians (NRIs) to the Indian real estate sector has been steadily increasing. According to a survey by NoBroker, NRIs accounted for around 10% of total investments in the Indian real estate market in the fiscal year 2019-2020. However, this figure has risen to about 15%, indicating a growing interest in Indian real estate among NRIs, and expected to reach 20% by 2024.
This surge in NRI investment can be attributed to various factors, including their strong emotional connection with their home country, a desire to secure property for future use and favorable policies implemented by the Indian government to encourage foreign investments
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Highlights of NRI Real Estate Report 2023
Preferred Destinations
Based on feedback from over 12000 NRI customers, the survey highlights Bengaluru and Mumbai as the preferred destinations for NRI buyers. Bengaluru’s cosmopolitan lifestyle, world-class educational institutions and thriving startup ecosystem make it an attractive investment destination. Meanwhile, Mumbai offers a dynamic real estate market with a mix of commercial, residential and luxury properties. Its status as an international business hub, rich cultural heritage, and vibrant lifestyle make it a compelling choice for NRIs seeking premium real estate investments.
Challenges Faced by NRI Buyers
82% of NRI buyers express a need for greater information and transparency when purchasing property in India. They often face challenges such as limited access to comprehensive property data, unclear regulations, and insufficient information on current prices, dependence on limited information only sometimes leads to the best investment decisions. 52% of NRI property owners express a desire for property management services, indicating a growing demand for convenient and professional solutions to oversee their real estate assets.
Emotional Connect and Security
NRI Real Estate Survey 2023 reveals that over 60% of NRI buyers want to purchase property for self-use, emphasizing their emotional connection, sense of security and attachment to their homeland. The depreciation of the rupee and a streamlined investment process have further fueled this surge in interest from the NRI community. 43% of NRIs seek properties for their family in India indicating a broader shift in the real estate landscape. This change shows more NRIs want to ensure their parents and grandparents feel comfortable and connected within a community.
Property Preferences
More people prefer 3BHK units (three bedrooms, a living room, and a kitchen) rather than 2BHK units. 29% of individuals showed a preference for the larger 3BHK units. Over 17% of respondents desire even larger accommodations specifically 4BHK and more extensive properties. This group of NRIs values larger properties for their spaciousness and versatility, allowing them to use the space for various purposes.
Digital Influence and Decision making Factors
Digital landscape plays an important role in shaping the investment choices of NRIs. 46% of NRI are using real estate websites searching for properties for investment in India. Over 55% of respondents emphasize a builder’s credibility when choosing a property for investment. Other important factors include potential price appreciation, location, and amenities.
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Disclaimer:
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