NRIs Boost India’s Real Estate: Sales Surge by 15%
Investment in India’s real estate market, especially in luxury properties, is seeing a significant upswing, with non-resident Indians (NRIs) driving a 15% increase in sales. This surge in demand for upscale homes signals growing confidence in India’s real estate sector, according to a recent report by NoBroker, with forecasts predicting sales to reach 20% by 2025.
Over the past few years, more NRIs are turning to Indian real estate, drawn by simplified tax regulations, indexation benefits, and transparent rules, making India an attractive investment destination.
Leading developers like DLF have observed a notable increase in NRI investor interest, particularly in luxury properties. DLF alone reported sales exceeding Rs 2,000 crore from NRIs in the fiscal year 2022-2023, accounting for around 14% of total sales.
The Gulf Cooperation Council (GCC), US, UK, and Singapore are among the key markets fueling this surge in demand. DLF’s recent project, DLF Privana South, saw approximately 25% of its sales coming from NRI markets, including significant contributions from the US-Canada, Southeast Asia, and the GCC regions.
Aakash Ohri, Joint Managing Director and Chief Business Officer of DLF Ltd, highlighted the attractiveness of Indian real estate for NRIs, citing opportunities for converting income into lucrative investments. Factors such as simplified taxation and indexation benefits further incentivize NRI buyers to invest in India.
Other developers, like TARC Limited and Smartworld Developers, have also witnessed increased NRI interest in their offerings, with regions like Dubai, Abu Dhabi, London, Singapore, and the United States showing significant engagement.
Amar Sarin, MD & CEO of TARC, emphasized the deep connection NRIs have with their cultural heritage, reflected in their investments in luxury developments.
Vivek Singhal, CEO of Smartworld Developers, highlighted the appeal of India’s real estate sector for high-net-worth individuals (HNIs) and NRIs, driven by factors such as appealing rental yields, capital appreciation, and affordability.
As India’s real estate market evolves, NRIs continue to play a pivotal role in shaping its trajectory, reflecting positively on the country’s economic resilience. With a conducive environment and rising interest, the collaboration between NRIs and India’s real estate sector is poised for further growth and success.