Over 75% NRI buyers prefer investing in their hometowns

NEW DELHI: NRI buyers make a beeline for their hometowns when buying property in India, finds a study by KPMG India and Google in 2018. As many as 78% NRI home buyers said this gives them the confidence to return back to India and stay with their family when they grow old. India is one of the fastest growing real estate markets globally and the residential segment is a major contributor, accounting for 80% of the overall market.

Preferred destinations for NRI investments are also no longer limited to the metros. Top destinations include - Kochi, Coimbatore, Bengaluru, Chennai, Ahmedabad, Hyderabad, Trivandrum, Chandigarh, Pune and Mumbai. Other smaller cities like Vadodara, Nashik, Noida and Ghaziabad are also witnessing a rise in NRI investments.

Increasing transparency due to RERA and other policy initiatives is prompting NRIs to invest in real estate back home.

Investment

Buying property in India is affordable to NRIs because of the currency advantage.

NRIs are a major source of international revenues for Indian players. Key source countries of NRI’s are UAE (20%), USA (18%), UK (7%) and Canada (6%). Aided by recent regulatory reforms, NRIs are now increasingly considering real estate in their hometowns and non-metro cities as profitable investment options.

The domestic real estate market offers superior long-term returns. “RERA has ensured that investment into residential property is much safer and the risks previously attached to home purchase have thereby been moderated. Also, considering that many NRIs will return to India at some point, owning a home in their respective cities is a very sound investment for the future,” says Santhosh Kumar, vice-chairman of ANAROCK Property Consultants.

https://realty.economictimes.indiatimes.com/news/residential/over-75-nri-buyers-prefer-investing-in-their-hometowns/66360254