NRI Real Estate Investments Surge by 4%: No Broker Report


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    In a recent report by tech-based brokerage platform No Broker, it has been revealed that Non-Resident Indian (NRI) investments in the Indian real estate market have experienced a substantial surge. According to the report, there has been a notable increase from 11% to 15%, with projections indicating a potential growth to 20% by the end of 2025.

    Factors Driving the Surge

    The surge in NRI investments is attributed to several factors, with a significant emphasis on the emotional connection that many NRIs maintain with their home country and the promising investment opportunities within the Indian real estate market. Technology has played a crucial role in simplifying the buying, selling, and remote management of properties, making information more accessible and eliminating asymmetry in the real estate landscape.

    Preferred Investment Destinations: Bengaluru and Mumbai

    The report identifies Bengaluru and Mumbai as the preferred investment destinations for NRI buyers. Bengaluru’s cosmopolitan lifestyle, renowned educational institutions, and thriving startup ecosystem contribute to a substantial increase in rental yields, making it an attractive investment hub. Similarly, Mumbai’s status as an international business hub, coupled with its rich cultural heritage and diverse real estate market, positions it as a compelling choice for NRIs seeking premium real estate investments.

    Size Preferences: Surge in 3BHK Units

    An interesting trend highlighted in the report is the growing demand for 3BHK units over 1 and 2BHK units. This shift is attributed to evolving lifestyle needs, including the demand for dedicated home offices, guest rooms, or additional living spaces, indicating a preference for more spacious and versatile living arrangements.

    Financial Landscape: Investments Exceeding ₹1 Crore

    Examining the financial aspect, the report discloses that 26% of NRI buyers actively seek properties with budgets exceeding ₹1 crore. This data suggests a discernible shift towards high-value investments, reflecting a heightened focus on premium and luxury real estate options among NRI investors.

    Challenges Faced by NRI Investors

    Despite the positive trend in investments, NRI buyers encounter challenges related to the lack of information and transparency while navigating the Indian real estate market. A significant 82% of NRI buyers identify these issues as major hurdles, underscoring the urgent need for improved accessibility and clarity in the property purchase process.

    Seeking Solutions: Embracing Property Management Services

    Addressing the challenges faced by NRI investors, the report reveals that 52% of NRI owners express a desire for property management services. These services emerge as a crucial solution to the complexities of managing properties from abroad, offering convenient and professional solutions for tasks such as finding tenants, property inspections, rent collection, and administrative responsibilities.

    So, the surge in NRI real estate investments in India is a complex phenomenon driven by emotional connections, technological advancements, and evolving lifestyle preferences. As Bengaluru and Mumbai emerge as prime destinations, and 3BHK units gain prominence, the industry must respond to challenges by providing transparent information and embracing property management services to ensure a seamless investment experience for NRI buyers.

    Also Read: NRI Investments Surge by 35% in India’s Residential Real Estate Market


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