According to a latest report by two global firms, it has been identified that most of the NRI buyers prefer investing in their hometowns when buying property in India. The study has been done by KPMG India and Google which says as many as 78% NRI home buyers believes that India is one of the fastest growing real estate markets globally and the residential segment is a major contributor to it.
The report said, “Increasing transparency due to RERA and other policy initiatives is prompting NRIs to invest in real estate back home. Adding to this, buying property in India is affordable to NRIs because of the currency advantage.”
It further stated that in recent times the Indian real estate market has taken a steep turn and almost all the sectors have seen a good jump in investment. Talking about the residential sectors, it only accounts for 80% of the overall market.
However, the most preferred investment destinations among NRI homebuyers are Kochi, Coimbatore, Bengaluru, Chennai, Ahmedabad, Hyderabad, Trivandrum, Chandigarh, Pune, and Mumbai. Other smaller cities like Vadodara, Nashik are also witnessing a rise in NRI investments.
“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.” Report added.
Adding more value to the report, many real estate experts said that the domestic real estate market offers superior long-term returns. Also, RERA has ensured that investment into residential property is much safer and the risks previously attached to home purchase have thereby been moderated. 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.