The Rise of NRI Investments in India’s Real Estate Sector: A Game-Changer in Market Dynamics
The Indian real estate sector is experiencing a surge in investments from non-resident Indians (NRIs), marking a significant shift in market dynamics. NRIs now account for nearly 25 per cent of total sales at major developers, up from pre-pandemic levels of 7-10 per cent.
Key markets such as the United States, Singapore, the UAE, Australia, and Saudi Arabia are driving this growth. Real estate developers are responding by creating dedicated teams to assist NRI buyers, with projects like DLF’s recent development in Gurugram seeing 25 per cent of sales coming from NRIs.
Ravish Kapoor, Managing Director of Elan Group, highlighted the wealth of opportunities for NRI investors in Indian real estate, noting the increased interest from High-Net-Worth Individuals (HNIs) and NRIs in luxury housing. A recent survey by India Sotheby’s International Realty found that a growing number of HNWIs, many of them NRIs, plan to purchase luxury real estate in India over the next two years.
According to a report by NoBroker, NRI investments in India’s real estate sector are expected to contribute 20% by 2025, driven by both monetary factors and emotional ties to the homeland. The appeal of sophisticated living environments and promising investment opportunities in cities like Delhi-NCR and Mumbai Metropolitan Region (MMR) is attracting NRI buyers seeking high-value investments.
Shashank Vashishtha, Executive Director of Exp Realty India, highlighted the increase in foreign institutional inflows into the Indian real estate sector, attributing it to structural and policy reforms that have enhanced transparency and ease of doing business. NRIs in the Gulf Cooperation Council (GCC) are increasingly optimistic about the Indian market, which has outperformed competitors in various countries.
Overall, the surge in NRI investments in Indian real estate reflects the sector’s attractiveness and potential for growth, making it a compelling destination for both domestic and international buyers.
