As per a report by Square Yards, India’s largest integrated platform for Real Estate & Mortgages and a consultancy that deals with NRI investors, the total investment by NRIs in the primary residential market in India’s top eight cities was estimated at USD 9.6 Billion in the year 2016. The consultancy expects this figure to touch USD 11.5 Billion in 2017, which accounts for about 19 percent of the total market, which is currently estimated at USD 60 Billion.
The major factor, which is believed to drive their decision of purchasing real estate in India is purported familiarity bias. It is said that since NRIs are quite familiar with their own country they prefer investing here. Moreover, the NRIs also have a stronger currency which makes buying in the country far easier.
A Point of Advice for Home Buyers/Investors Looking for Good Returns
It is also a good pick for NRIs who are buying the property for investment purposes. The ongoing slowdown in the real estate market has given birth to multiple opportunities for the NRIs. Anupam Rastogi, Principal partner at Square Yards quotes that “NRIs can pick up properties at reasonable prices and also take advantage of the discounts and payment plans being offered by developers.” However, it is also said that NRIs should not expect quick returns but must have an investment horizon of at least 7-10 years instead. This is the only way to make some good returns with real estate investment. The top advice says that if the NRI home buyers are not sure about investing in the property market they can simply choose to stick with the top builders.
Also, Read This is an opportune time for NRIs to invest in Indian real estate says Square Yards’ GCC Head
