NRI Investments are Trickling in Again into Indian Real Estate Sector

Among the several positive trends that have emerged in the Indian real estate sector, the resurgence of NRI investments deserves a special mention. A major segment of the Indian property buyers comprised of NRIs, and this trend was on the rise until the pandemic struck. Covid-19 brought most industries to a standstill and the real estate market was no different. The pandemic and the ensuing lockdowns severely affected NRI investments by causing a number of disruptions. This, however, has now changed again.

NRI investments started trickling back into the Indian real estate sector once again, and this trend now continues to grow. An increasing number of NRIs are purchasing properties in major Indian cities, especially in the residential sector. One of the notable trends in this aspect is that more NRIs are buying properties in India for self-use. In the past, a majority of the NRI property buyers were investors looking for a means to earn rental income. However, the pandemic has shown them the importance of owning a home back in India as a place to settle.

In the financial year 2021, NRI investments in Indian real estate have amounted to USD 13.1 billion. Experts predict that FY22 would record NRI real estate investments worth USD 14.9 billion. The environment in the Indian real estate market has favored the growth of NRI investments. For instance, homeloan rates are currently the lowest in two decades. The government has helped make homes more affordable too, by reducing the stamp duty charges. Together with the market trends, this has prompted NRIs to invest in real estate assets.

Technology has aided in making the Indian real estate market even more attractive to NRIs. The pandemic forced real estate companies and brokers to start offering virtual tours and digital inspections. These technologies also allow NRIs to check out properties in India themselves, before they make a purchase. The increased transparency, changing buyer sentiments, improved affordability and flourishing luxury segment have together contributed to the trend of increasing NRI investments.