'NRIs Prefer Non-Metros For Real Estate Investment'

A joint study by global consultant KPMG and search-engine giant Google titled Indian Brand Going Global earlier this year suggested that Non-Resident Indians (NRIs) were the major source of revenue for India, with investors from the United Arab Emirates (20 per cent), the United States (18 per cent), the United Kingdom (7 per cent) and Canada (6 per cent) being the major contributors.

Where are they buying?

Metro cities have always been the top choice for NRIs but recent trends show that small cities may be pushing their way through to the top in the preference meter. “NRIs are now increasingly viewing real estate in their hometowns and non-metro cities as profitable investment options,” the report reads. The report also cites the superior long-term returns as the obvious reasons why NRIs invest in the domestic real estate markets.

Cities of choice: A joint study by Housing.com and Makaan.com revealed that while Hyderabad managed to score over other Indian cities, Gurgaon, Noida, Ahmedabad, Ghaziabad, Vadodara, Kochi, Goa, Faridabad looked promising given that searches on the website were sizably high.

What are buyers looking for?

Under-construction homes are coming back as a popular choice, reveals the Housing-Makaan study. While ready-to-move homes still claim a larger share, the preference has now moved from 33:67 to 44:56 ratio.

Are we ready for the NRIs?

By leveraging technology and digital platforms, real estate developers could tap the NRI and the High-Net-Worth-individual customer base. By offering a one-stop solutions platform such as a dedicated NRI portal and targeted marketing campaigns, developers could make the most of their customers across the border. One can already note how virtual walkthroughs and improvements in user experience can ensure positive results. The market size in 2017 was $11.5 billion and is expected to cross $ 25.7 billion by 2022 at a Compound Annual Growth Rate (CAGR) of 17 per cent.