IANS | 18 Sep, 2023
India's IT capital Bengaluru has evolved as the major investment destination for NRI investors in residential real estate.
estate industry pundits are claiming that 2023 is going to be a
remarkable year in connection with NRI investments as the slew of
infrastructure projects, new IT corridors emerging in the city and
conducive atmosphere in terms of peace, law and order situation in
Bengaluru, and cosmopolitan outlook are also contributing to the trend.
say that NRIs from Asian regions, from countries like Singapore and
from the Middle East, are also making huge investments apart from those
in the US. The trend is catching up as NRIs in the Middle East and
Singapore want to come back to India and settle down here.
Bengaluru, Hyderabad and Pune are preferred destinations for investments in the real estate sector, say trade experts.
to IANS, BCD Group MD Angad Bedi said: "As we observe the increase in
NRI investment in India and particularly in Bengaluru, 2023 is destined
to be a remarkable year, with expected investments reaching an
astounding $80 billion by the year's end, a remarkable increase from the
$65 billion invested in the previous year.
economy is growing steadily, providing a fertile environment for NRIs to
capitalise on emerging opportunities. Secondly, the proactive measures
taken by the Indian government to facilitate investment opportunities
for NRIs, combined with an array of enticing incentives, have fostered
an investment-friendly environment."
"The recent appreciation of
the rupee has increased the appeal of Indian assets to non-resident
Indians with Bengaluru and Mumbai, the biggest markets with a combined
42 per cent share of the H1 2023 sales. Bengaluru is witnessing huge
interest from UHNIs and NRIs with the residential prices in the city
experiencing the highest increase of around 11-12 per cent y-o-y in the
first half of this year as compared to the 6-9 per cent price rise in
major cities during the period," he added.
Cornerstone Group CEO
Captain K. Srinivas told IANS that, the country’s real GDP growth
witnessed a yoy growth of 6.1 per cent as of March 2023 and is expected
to reach 6.5 per cent by FY24.
This economic resilience is
creating a favourable condition for the NRIs to foresee a bright future
where they can not only multiply their investments multifold, but also
get long term value appreciation. The case in point is the country’s
real estate sector where a lot of NRIs are infusing their cash flows due
to the sector’s phenomenal growth story, especially in Bengaluru, he
This positive investment sentiment can be witnessed across
all asset classes as NRIs are equally enthusiastic about the country’s
luxury residential segment that is growing exponentially, as well as the
CRE segment, he said.
"Apart from the existing office REITs,
Q2-23 saw the launch of India’s maiden retail REIT ‘Nexus Select Trust’
and it raised Rs 32 billion from its share sale in May 2023. A lot of
NRI investors are actively eyeing on these developments as they see
great potential in the market. Besides, with the rising demand, large
scale urbanisation and overall uptick in land and real estate prices
across the key markets in India, the NRIs are enthusiastically
optimistic to park their money in various investment machines in India,"
Property First founder and MD Bhavesh Kothari
said: "The country’s GDP is expected to reach 6.5 per cent by FY24.
These robust economic conditions have created and continue to create
favourable conditions for the NRIs to invest in real estate as they can
multiply their investments, benefit from land appreciation value and
envision a promising future. This has led to increased investments,
especially in high-growth markets like Bengaluru where the luxury
residential segment and CRE segments are in high demand."
Bengaluru, the investment inflow is quite optimistic as the city and its
various sub-markets are witnessing large-scale infrastructural growth
and the emergence of new IT corridors, especially in the north suburban
areas and areas like Sarjapur, that witnessed some massive land deals in
the last 2 years, Kothari added.
Being the IT nerve centre of
India and a global tech city, Bengaluru is also attracting NRI investors
who are investing in the growing co-working segment and the traditional
Grade A office spaces, on the back of continued demand from global MNCs
and enterprises, he added.
According to industry experts, the
surge in NRI investment in residential real estate is a trend that is
expected to propel 2023 investments to an anticipated $25 billion, up
from $20 billion in 2022. This trend is supported by a surge in housing
demand, increasing disposable incomes among NRIs, and an emphasis on
infrastructure development by the government.