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.

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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

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