NRIs are increasing their real estate investment activity.

Non-resident Indians (NRIs) are interested in investing in real estate enterprises, mainly residential residences and commercial buildings. This could be for personal use or as an alternative for investment. Still, either way, the NRIs are expressing this desire. Real estate, which accounts for seven per cent of India’s gross domestic product, has traditionally been regarded as a safe investment choice not only by those born in India but also by people born outside of the country. The investment in real estate is seen as a risk-free alternative by these foreigners, as well as one that typically results in a significant return on the initial investment.

End-users, high-net-worth individuals, and non-resident Indians (NRIs) account for most of the demand for housing in many different cities, particularly megacities such as the National Capital Region (NCR), Bengaluru, and Hyderabad, according to multiple reports and surveys on real estate. According to a study published by Realtor Company, non-resident Indians (NRIs) made investments totalling $13.1 billion in the fiscal year 2021. This figure is anticipated to increase by 12 per cent to reach $14.9 billion in the fiscal year 2022.

Because it is becoming increasingly vital for these expats to have a residence of their own in their home country in the world that has emerged as a result of the pandemic, there has been an increase in the amount of real estate investment carried out by these individuals. NRI investments in the real estate industry have been rising in recent years. This trend may be attributed to various reasons, including the realisation that real estate can provide a reliable return on investment and the purchase of homes for personal use.

The majority of these non-resident Indians (NRIs), according to the opinions of industry experts, choose to put their money into luxury or ultra-luxury real estate. Still, some are also considering putting some of their money into commercial real estate. Many real estate developers are considering the possibility of building projects tailored to NRIs’ preferences and necessities. These residences might be particularly roomy and technologically advanced.

A company has developed a one-stop solution for property financing that includes lease, acquisition, loans, and financial modelling. It is not just one company but the interventions of new-age technologies that are playing a significant role in making it possible for NRIs to invest in India without actually being present. According to the founder of a real estate company, non-resident Indians (NRIs) now can virtually tour a property before making a purchase and complete the transaction with the click of a button using digital audits and smart contracts. A certain company provides this technology.

Indian market

Compared to other states, India’s real estate market growth can be attributed to several factors, including a stable government, a growing population of IT professionals, and the development of the country’s infrastructure. Keeping these things in mind, many non-resident Indians (NRIs) and other expatriates are purchasing real estate in India’s megacities for their consumption or as a potential investment possibility.

“Despite being a pioneer in the information technology industry and experiencing rapid urbanisation, the megacities of India remain an affordable area for both business owners and residents to call home. The majority of neighbourhoods located within India’s megacities have average property prices that fall somewhere in the region of Rs 3,000 and Rs 6,000 per square foot. Because it is a city that is friendly to migrants and has a thriving software industry, it greatly boosts the investment opportunities available in the rental real estate market. This is because non-resident Indian investors prefer to invest in properties that generate rental income, according to an industry expert. Many non-resident Indians (NRIs) are now in a position to make real estate investments thanks to recent reductions in property prices. In addition, the city is in the process of creating several important commercial centres, which further encourages NRIs to take the risk. The commercial properties provide investors with profitable investment opportunities thanks to their high rental rates and substantial capital gains.