In the post-pandemic era, a far higher number of NRIs are looking for residences for personal use, followed by investment purposes. NRIs, particularly those from the Gulf and the United States, are seen as high-potential clients in the real estate sector. The vast majority of NRIs (about 90%) prefer properties developed by well-known companies, which explains why NCR, which has a vibrant real estate sector, has performed so well. One of the biggest draws for NRIs to this region is the planned development. The self-use includes buying an apartment for elderly parents staying back in India.
Although there are more than 32 million NRIs, the majority of real estate investment is done by NRIs from the United States, Saudi Arabia, and the United Arab Emirates. The plummeting rupee rekindled NRI interest, and many are now considering buying a property here because of their emotional ties. NRIs are more inclined to commercial real estate as an investment, which got a boost with the emergence of REITs; they are buying residential properties as a backup plan that will allow them to receive some return through rentals while also ensuring good capital gain. As one of the reasons to buy an apartment is taking care of their elderly parents, NRIs are very particular about the safety and health amenities being provided inside and around the project.
With several NRI property buyers prepared to return to India, luxury properties are in great demand, with over 50% of NRIs preferring properties costing more than Rs 1.5 crore and 32% preferring premium properties costing between Rs 90 lakh and Rs 1.5 crore. According to a CII-ANAROCK research, only 11% choose mid-segment homes (priced Rs 45-90 lakh), and only 7% prefer affordable homes.
NRIs have been influenced to buy property in India by developer offers and the extension of the RERA deadline as part of the Atmanirbhar Bharat package. Realty players have also stepped up their game by virtually conducting sales and project showcasing, making it easier for NRIs to make buying decisions.