NEW DELHI: The Narendra Modi-led government has given a significant boost to the confidence of the non-resident Indians (NRIs), with the investment into the primary residential real estate market expected to almost double this year.
About $11.5 billion of investment by NRIs is expected to come in the new home or primary residential market across top 8 major cities in 2017, against $6 billion in 2013, according to a report by real estate transaction platform Square Yards.
“It is believed that the new change in government has infused new sense of confidence about the prospects of Indian economy,” said Kanika Gupta Shori, COO and co-founder, Square Yards.
Over 20% of NRI investment in Indian real estate comes from the United Arab Emirates (UAE), followed by other major NRI populated countries such as the USA and the Kingdom of Saudi Arabia. Other countries such as Canada, the UK, Singapore & Australia also source of substantial NRI capital inflow in Indian realty.
“A depreciating Rupee against the dollar and other currencies have added further impetus to the rise of momentum of NRI investment into the Indian real estate,” she said.
The first two months of January and February generally witness the largest volume of NRI investments, shows the report. “There are vacations in Europe & North Africa during November & December, many NRIs prefer visiting India during this time. This is also the time when they prefer site visits. Once back, they finally zero down on making the final purchase,” it said.
The demonetisation drive by the government along with the real estate regulatory Act (RERA) can entail positive impact on Indian real estate, according to Shori. “They will enable Indian real estate to usher in an era of unparalleled transparency and attract domestic & international institutional investment,” she added.
New technological tools such as google apps, virtual & augmented realities will also increasingly play a major role in bridging the geographical gap, according to the report. “They will help NRIs know more about properties in India, omitting the necessity of a physical presence,” the report said.
Walls N Roof Comment : Real estate of India have seen tremendous growth in the last quarter of 2016. The start of 2017 have witnessed major change in reforms by government, leading to boost in real estate sector. The relief in reforms by government have not only sustained the interest of the buyers in India but have attracted NRIs (Non residential Indians) interest in Indian real estate sector. Real estate have developed not only in the cities like Mumbai, Delhi and Pune but also in cities like Ahemdabad, Bangalore, Hyderabad, Thane etc which are turning into smart cities which is a major reason for NRIs attraction in Indian realty sector.