NRI homebuyers skewed to invest in India amidst Geo-Political Tension

• 71% of NRI respondents saw Indian housing as the best investment bet
• NRIs account for 10-15% of homes sold in any given quarter FY 22

The depreciating rupee value and the continuing buoyancy in the Indian residential real estate market are significant draws for NRIs to invest in their country of origin. Notably, more NRIs prefer investing in Indian real estate over stocks, mutual funds, gold, and fixed deposits. According to the market survey, current (H1 2022) edition, 71% of NRI respondents saw Indian housing as the best investment bet. This is markedly higher than the 55% in the pre-covid edition.

The global Indian community is well aware of simmering geo-political disputes and the unfolding of economic volatilities. This global risk may drive them to relocate to their homeland and owning a home will prove to be a prudent choice. Property is an emotional asset that also enables social security in Indian society. The sentiment of owning a safe nest in India remains strong despite undercurrents of hardening home loan interest rates and property prices. Today, NRI’s homebuyers are keen to leverage the depreciating rupee value of the US dollar giving them a distinct advantage.

According to a property research firm, Housing has seen a 15-20% increase in NRI demand in the first nine months of 2022 compared to the corresponding period in 2021. As per the Research data, the Jan-Sept period of 2022 saw approx. 2.73 lakh homes sold in the top 7 cities signifying that on average, NRIs account for 10-15% of homes sold in any given quarter.

NRI demand is dominant in buying bigger homes to optimize the benefit of privacy, flexi living, progressive lifestyle and unrivaled quality of life in the new-normal era of post-pandemic. Luxury real estate has picked up steam in the face of a hybrid or remote work culture. NRI homebuyers are snapping up on 3 & 4BHk for augmented private living appetite post covid pandemic quandary.

Many NRIs are actively considering using their home purchase as an end-use asset amidst diplomatic turbulence shadowing long-term prospective outlooks on their foreign land. As the Indian economy has fared better in comparison to developed economies, many global Indian citizens are contemplating repositioning back to the soil of a resilient economy.

The new project launches will give discerning homebuyers an opportunity to opt for fresh housing stock with a distinct advantage. Mumbai’s realty market witnessed a 39% spike in new property launches after a negligible launch in the post-pandemic economy. Key property markets in the top eight along with tier cities have accorded new project launches in the wake of market consolidation and redevelopment schemes. The flexible interest rate will average out profitable for the homebuyers in the long run as the economic situation stabilizes and becomes conducive for growth.

The time is ripe for potential homebuyers to evaluate the right options available in the market offered by the branded and organized players. This will safeguard the homebuyers’ interest and enable developers to deliver in stipulated time frames.

The future of the Indian economy is on the right growth track with short-term overhauls due to international turmoil. The real estate sector is poised for significant growth to accord the demand for Housing for All objectives with a multiplier effect on job creation.