NRI investments in Indian real estate may grow at 12%: Report
Real Estate

NRI investments in Indian real estate may grow at 12%: Report

Non-Resident Indian (NRI) investments in India have remained strong in recent years due to favourable policies by the regulatory agencies, according to a recent report by realty brokerage firm 360 Realtors. Based on a regression analysis, the report has further suggested that investments will rise to $14.9 billion in FY22, growing by 12%.

The report states that NRIs have invested $13.3 billion in the Indian real estate market in FY21 as compared to the earlier estimates of $13.1 billion. The investment volume has risen by 6.4% compared to the previous fiscal despite the overall market sector taking a hit due to the Covid-19 pandemic.

In the first quarter, the numbers shrank by 35% due to the worldwide lockdown that triggered a massive panic. The sharp slowdown in economic and business activities integrated with the full-blown medical crisis weighed badly on the NRI investment sentiments.

However, the situation improved significantly in the second quarter, as numerous attractive payment plans started luring NRI buyers. This was also a time when liquidity infusion by the Indian government helped in improvising the overall economic climate as well as lowering the home loan rates.

The report said various factors are playing a crucial role in the uptrend. Besides attractive payment plans and growing focus on the tangible asset to de-risk, correction in the value of the Indian rupee is also giving a buying boost.

As per the report's data points, GCC continues to be the major source of NRI investments in India. Collectively, GCC accounts for around 41% of the total investments. Investment inflow from the USA's expat community comprises 17% of the total purchase, followed by Singapore (12%). Other major source markets include the UK, Germany, Kenya, South Africa, and Canada, among others.

The report suggests an incremental growth in average ticket size. Earlier reports have suggested a dip in average ticket sizes. However, this time after the pandemic, most of the buyers are now opting for larger spaces, which has led to a surge in ticket sizes.

In FY21, average ticket sizes from the USA have reached $124,000 compared to $111,000 in FY20. From Singapore, the average ticket sizes have risen to $93,000 from $91,000 in FY20. Similarly, the average ticket size of purchase from UAE-based NRIs has increased by 11.5% at $97,000.

Image Source


Also read: NRIs could contribute to real estate recovery

Non-Resident Indian (NRI) investments in India have remained strong in recent years due to favourable policies by the regulatory agencies, according to a recent report by realty brokerage firm 360 Realtors. Based on a regression analysis, the report has further suggested that investments will rise to $14.9 billion in FY22, growing by 12%. The report states that NRIs have invested $13.3 billion in the Indian real estate market in FY21 as compared to the earlier estimates of $13.1 billion. The investment volume has risen by 6.4% compared to the previous fiscal despite the overall market sector taking a hit due to the Covid-19 pandemic. In the first quarter, the numbers shrank by 35% due to the worldwide lockdown that triggered a massive panic. The sharp slowdown in economic and business activities integrated with the full-blown medical crisis weighed badly on the NRI investment sentiments. However, the situation improved significantly in the second quarter, as numerous attractive payment plans started luring NRI buyers. This was also a time when liquidity infusion by the Indian government helped in improvising the overall economic climate as well as lowering the home loan rates. The report said various factors are playing a crucial role in the uptrend. Besides attractive payment plans and growing focus on the tangible asset to de-risk, correction in the value of the Indian rupee is also giving a buying boost. As per the report's data points, GCC continues to be the major source of NRI investments in India. Collectively, GCC accounts for around 41% of the total investments. Investment inflow from the USA's expat community comprises 17% of the total purchase, followed by Singapore (12%). Other major source markets include the UK, Germany, Kenya, South Africa, and Canada, among others. The report suggests an incremental growth in average ticket size. Earlier reports have suggested a dip in average ticket sizes. However, this time after the pandemic, most of the buyers are now opting for larger spaces, which has led to a surge in ticket sizes. In FY21, average ticket sizes from the USA have reached $124,000 compared to $111,000 in FY20. From Singapore, the average ticket sizes have risen to $93,000 from $91,000 in FY20. Similarly, the average ticket size of purchase from UAE-based NRIs has increased by 11.5% at $97,000. Image Source Also read: NRIs could contribute to real estate recovery

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code