NRIS IN GCC INVESTING IN INDIAN REALTY

BY Realty+

With the appreciation of the US dollar against the Indian National Rupee, India remains a preferred destination for residential and commercial real estate. The pandemic experience and the current economic trajectory have made many consider investments in their homeland.

Further, Q1 home sales in India have already spiked at the highest level since 2015. These positive trajectories are only augmenting more pull from NRIs who are keen on high-end investments, across metros, and countryside locales.

As per industry reports, out of the total 13.46 million NRIs globally, more than half are concentrated in the Gulf countries with the UAE, Saudi Arabia, and Kuwait accounting for around 3.42 million, 2.6 million, and 1.03 million Indians respectively. Qatar and Oman are home to 7,45,775 and 7,79,351 Indians.

The demand queries from the GCC are increasing exponentially in price brackets across premium and luxury categories. The trend also underlines their need to be close to their families, while some are investing with the purpose of having a base back home, should they decide to retire in India. More than half of the NRI buyers in the UAE are over 45 years of age who mostly prefer to buy a home as part of their post-retirement plan.

As per the latest Anarock research, the first quarter of 2022 saw housing sales of at least 99,550 units across the top seven cities, of which the share of NRI purchases was up to 15 percent. The research also showed that an overwhelming majority of non-resident Indians (NRIs) – as high as 82 percent – now prefer to buy premium to luxury residential properties in their home country, a major change from the past when Gulf-based expat Indians mainly preferred low priced houses in the affordable category.

As per a report by 360 Realtors, in 2021, NRIs from across the globe have invested $13.1 billion and this is likely to grow by 12 per cent to touch $14.9 billion in 2022 with continuous developmental activity and resurgent economic momentum. In fact, the trend has created a specific market segment for high-rise properties and integrated townships across metros, as well as large holiday homes in the countryside and coastal areas.

CITIES & PROPERTIES OF CHOICE

GCC constitutes almost half the Indian NRI and expat population in the world at around 7.5 million. Given the location proximity, favourable policy outlook, current exchange rates and indexation benefits, India is and will continue to be a hotspot for ‘back home’ demand, bringing in more FDI and circulating a positive sentiment for the domestic sector.

Locations such as Shimla, Kasauli, Mussoorie, Goa, and metro regions such as NCR, Pune, Kochi, and others are generating a lot of interest. Luxury interiors, and amenities, with a focus on the environment and wellness are often requisites by NRIs while shortlisting real estate options. Properties worth less than ?10 million comprised around 86% of the total properties bought from us by UAE-based NRI customers.

Delhi and its adjoining cities Noida and Gurugram have continued to be the top-ranked destination for Dubai-based NRIs, according to a study conducted by Square Yards. “Delhi-NCR clocked 56% of the total properties bought, the other cities where Dubai-based NRIs purchase properties are--Bengaluru (22%), Mumbai (11%), and Pune (6%).

Meanwhile institutional investments in Indian real estate touched $2.6 billion during H1 of 2022, a 14 per cent rise from H1 2021. The inflows during H1 of 2022 was led by the office sector which accounted for about 48 per cent share, followed by the retail sector with a share of 19 per cent, according to a survey by Colliers India. However, investments continued to be driven by foreign investors wherein pension and sovereign funds are betting on income-yielding assets in the office, retail and industrial sectors.

IT IS REPORTED THAT QUERIES FROM GCC COUNTRIES (UAE, OMAN, KUWAIT, SAUDI ARABIA AND QATAR) AMONGST OTHER ASIAN REGIONS ARE THE HIGHEST. 

Tags : NRI Indian Realty Real estate Industry India destination commercial residential economic UAE Saudi Arabia Kuwait Qatar Oman Anarock research 360 Realtors Shimla Kasauli Mussoorie Goa interiors NCR Pune Kochi