Non-resident Indian (NRI) investments in the Indian property market, with a notable surge from the Gulf region, are poised to further escalate in the upcoming festive season. The depreciation of the rupee and the growing trend of investment-driven acquisitions have jointly fueled a significant increase in NRI investments. In the first half of 2023, there has been a substantial 15 percent leap compared to the corresponding period in the previous year, according to insiders from the industry.
Anticipating an augmented demand, particularly from the Gulf region, developers in key Indian cities preferred by NRIs are gearing up to present enticing packages. These packages are set to include price discounts, exclusive inventory options, synchronized international launches of upscale projects, and tailored guidance for property selection, all aimed at attracting expatriate Indian buyers.
Morgan Owen, Managing Director – Middle East and North Africa at Anarock Group, a prominent real estate consultancy in India and the GCC, noted the rising interest from NRIs. Owen stated, “If we compare the demand between 2022 and the first six months of 2023, there has certainly been a growing interest from NRIs. There is at least a 10-15 percent jump in demand by NRIs in the first half of 2023 as compared to the same period in 2022.” Arabian Business reported this statement. A senior executive from DLF, a leading Indian developer, confirmed the surge in expatriate Indian investments in the country’s residential property sector this year, particularly from the Gulf region.
Aakash Ohri, Group Executive Director and Chief Business Officer at DLF, revealed a significant rise in NRI investments in DLF projects this year, indicating a surge of up to 15-20 percent. Ohri also expressed intentions to more than double this figure in the upcoming years. He pointed out the increasing number of NRIs considering purchasing homes in India over the past two years, with a particularly strong emergence of pent-up demand this year.
Both Owen and Ohri attributed the robust traction in the residential real estate market to several factors, including the emotional connection NRIs have developed with their homeland post-Covid. This connection often motivates them to own a residence in India. According to Anarock Research, approximately 229,000 residential units were sold across the top seven Indian cities in the first half of 2023. Notably, the share of NRI purchases accounted for an average of 10-15 percent of total sales during that period.
Among Gulf-based expatriate Indian investors, tech cities like Bengaluru, Hyderabad, and Pune stand as top preferences due to the enhanced job opportunities they offer for NRIs planning to return to India. These cities’ cosmopolitan nature also adds to their allure for NRIs. Additionally, Delhi National Capital Region (NCR) remains a significant destination for NRIs, driven by an increase in luxury property supply, particularly from branded developers.
DLF and other leading developers have introduced NRI-focused initiatives in response to the escalating interest in Indian investments. DLF, for instance, has established a dedicated team to engage with the Indian diaspora abroad. This team keeps them informed about DLF’s latest developments and industry trends, offering real-time support across various time zones. Furthermore, dedicated inventory is being secured specifically for NRI buyers, with simultaneous launches both within India and abroad, ensuring access to the finest inventory comparable to clients in the country.