NRI Investment in Indian Real Estate Remains Robust Despite Price Hikes
Non-Resident Indians (NRIs) continue to play a significant role in the Indian real estate market, representing a crucial segment for the nation's leading property developers. These developers recognize the enduring desire of NRIs to maintain a connection to their homeland through property ownership, regardless of cost.
This persistent demand has sustained NRI investment in Indian real estate, even with price increases ranging from 43% to a staggering 166% across various cities. Developers report that sales within the NRI segment demonstrate greater stability compared to the domestic Indian market.
Driving Forces Behind NRI Investment
Mr. Anil Kumar Sharma, Chairman and Managing Director of Noida-based Amrapali Group, highlighted this trend in an interview. "NRIs wish to have a second home in the country they belong to," he stated. He further emphasized the influence of favorable government policies in stimulating NRI interest in Indian real estate investments. "NRI investments are the least volatile of all in our industry. They are assured that they are investing in an asset which they can fall back upon.”
Mr. Sharma, who also holds the position of Vice-President of the Confederation of Real Estate Developers’ Associations of India (CREDAI), attributed the rising property prices to ongoing infrastructure development. He argued that these improvements, while contributing to higher initial costs, ultimately benefit buyers by increasing long-term property values.
Infrastructure Development and its Impact
"Upcoming projects like the metro, monorail and the international projects in the big cities in India have contributed to the inflated real estate prices in these cities," Mr. Sharma explained.
Amrapali Group's Focus on NRI Investors
Amrapali Group reports that approximately 35% of its overseas business originates from Singapore, underscoring the importance of this market. In line with this focus, the company will participate in Sumansa Exhibitions' Indian Property Show, scheduled to take place in Suntec City on April 14th and 15th.