Why do Non Resident Indians give preference to investments in Indian Real Estate?

NRI 

Approximately 30 million NRI's or Non resident Indians have been spread in 140 countries. The estimated wealth that they possess is 1.2 trillion USD.  These non resident Indians were considered to be the greatest contributors of foreign exchange in the years 2010 and 2011. There are around 7 lakh residents who have left the country searching for greener pastures. One lakh NRIs are expected to come back home each year. 

From the various investment options that are found these days, a key role has been played by the real estate due to the periodic investment returns as well as a good rate of appreciation. Moreover, there are many NRIs living in West Asia who aren’t able to stay there due to various domicile restrictions. This is the main reason why they are always seeking different options of investment including real estate for permanent settlement.

3 types of real investors are found and these include low, middle as well as high income groups. Within the given categories, there are investors as well as end-users. In the Association of Gulf Cooperation Council Countries that comprises of Qatar, Saudi Arabia, UAE, Kuwait, Bahrain and Oman, there are around fifty five to sixty lakh NRIs who work today. This includes unskilled as well as semiskilled labor.

Similarly, out of the one million NRIs in Malaysia, more preference is given to the southern cities here. In Canada, one will find a majority of NRIs who hail from Chandigarh, Delhi as well as other regions. In United States, out of the 2.5 million NRIs, the real estate requirements are dominated by various southern cities such as Chennai, Hyderabad and Bangalore. There is variation of specific needs of real estate depending on the savings potential, region as well as other factors. In India, affordable housing is found in the price range of twenty five lakhs to thirty lakhs. Here, there are various expatriates who are either very skilled or CEO’s of the companies. The salaries which they get are very high. Ten percent of the NRI population consists of technically qualified professionals as well as individuals. There are many people who look out for apartments ranging between seventy lakhs and one crore. The price range of villas is more than 2.5 crores. There are many people who have the keenness for making an investment in commercial property as many NRI’s have came back to India and have set up their offices. Most of these NRI’s are looking to setup their offices in Noida and Gurgaon and there are many good options available one of the leaders in Commercial property is ‘Cosmic Structures Limited’. They are coming up with a unique commercial property Cosmic Corporate Park where one could get all the commercial facilities under one roof. Cosmic Corporate Park is considered to be a Seven Star Luxury Corporate Space with area ranging from 150 sq.feet to 2000 sq.feet.

According to banks in India, the approximate size of home loan is thirty to seventy lakhs. There is a great demand for apartments as well as commercial property in India. Even the business of home loans in India ranges from 720 to 800 crores. The demand for real estate is driven in cities such as Jaipur, Chennai, Bangalore, Mumbai, Kochi, Pune and NCR. There is a great demand for the tier II cities as well. More and more skilled professionals and businessmen are being relocated to different Indian cities such as Noida, Gurgaon, Pune, Chandigarh and Indore and due to this; the requirement for apartments in the price range of 70 lakhs and commercial properties in different ranges is growing. This has in turn leaded to construction of many new commercial properties. Many people seek commercial property on rent and as a result the rents of commercial properties have gone up many folds.

Tag: NRI, Indian Real Estate Market, Commercial Property, Noida Real Estate Market,