By Manju Yagnik
Non-Resident Indians (NRIs) have been vital to the spectacular rise that the MMR has experienced in recent years. The Indian real estate market is showing significant signals of growth.
According to research done by the National Real Estate Development Council (NAREDCO), the Indian real estate sector was valued at $200 billion in FY21 and is anticipated to increase to $1 trillion by FY25, even though the global real estate market is still recovering from stagnation. Some of the most significant factors driving demand for Indian real estate include rising demand for the luxury housing sector, rent inflation, and the declining value of the rupee.
For many years, we have seen an increase in the preference of NRIs and High-Net-Worth Individuals (HNIs) to invest in luxury real estate in India. Their investment choices are influenced by various factors, such as the desire to return “home,” a lifestyle that easily fits the best global standards, changing demographics, rising property standards, and attractive offers from reputable Indian developers. The potential for high ROI that luxury residences offer and the possibility of generating significant rental income is another important growth factor. NRIs are investing more money into buying bigger homes in India as a result of government assistance and increased purchasing power. Due to the country’s currency’s depreciating value against other currencies in 2022, there were large NRI investments in the housing industry, notably in high-priced homes.
The Mumbai luxury real estate market has expanded due to developer’s flexibility and ongoing innovation. They have not resisted evolution and have embraced the expectations of the global market, increasing the luxury components in their offers. Investors seeking ultra-luxury real estate are lured to automated homes that provide security, wellness, and comfort without sacrificing elegance. These are some key parameters that attract NRIs to make investments in India’s luxury market. New government reforms like the RERA Act (Real Estate Regulatory Authority) have also given NRIs more confidence to invest in Indian markets. Because all information pertaining to a property can be available on a single platform, the act has made it simpler for overseas investors to buy or sell properties without any bother or concern of being deceived. Because there are no longer any potential hidden fees associated with any transaction, confidence among buyers and sellers alike has improved, resulting in higher property values and more transactions.
Manju Yagnik is the Vice Chairperson, Nahar Group | Senior Vice President of NAREDCO- Maharashtra
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