NRI investment in Indian realty crosses $10bn mark 2018
A report on the state of NRI investments in the Indian real estate sector, compiled by 360 Realtors, a leading real estate consulting company, has found that NRI investments in Indian real estate has already doubled from $5bn in 2014 to $10.2bn in 2018. This growth is largely driven by five cities - Mumbai, Pune, Bangalore, Gurugram, and Noida. The key driving factors are the dwindling rupee that has made Indian real estate more affordable, regulations like RERA that have led to increased transparency, and growing developer focus on the expatriate market. NRIs from countries like the US, UK, MEA, and Singapore account for a quarter of real estate sales in the country in 2018-19 till date. Around 70% of these sales are retail in nature, from expatriates who aspire to buy a home and settle down in their country of origin, post retirement. While NRI investments stabilized during 2016-18, the market gained momentum recently, powered by a depreciating rupee, high yielding rental returns and capital appreciation. In the current financial year, NRI investments are expected to rise by around 15%. Ankit Kansal, co-founder and CEO, 360 Realtors said, “A dwindling rupee along with the transparency that has ensued due to good regulatory decisions like RERA has emboldened the confidence of NRIs in the Indian real estate sector. They are looking to make the most of the opportunity by buying property both for personal use as well as investments. While Mumbai is the obvious number one in terms of investments, Noida is one market that is witnessing some great action. We expect the strong demand from NRIs to continue throughout the year and into 2019 as well.”
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