Where Are NRIs Investing?

Cash-rich non-resident Indians (NRIs) do like to park their money in property markets at home to earn great returns. But, monetary benefits are not the only factors that drive their investment decisions, finding of a new survey reveal. A majority of NRIs prefer investing in their hometowns for the sheer sense of security it offers them, even if there are no big investment returns guaranteed. Of all the NRIs, who took part in an online survey, 78 per cent respondents said they would prefer to invest in their hometowns.

Here are some other factors influence property investment decisions of NRIs:

The second best

Real estate of Tier-II cities has emerged as a popular investment option for NRI. Considering property markets of major cities are now saturated and the scope for future growth is limited, emerging cities are becoming top choices among NRI investors. Owing to that property investment by NRIs in cities such as Ahmedabad, Coimbatore, Kochi and Thiruvananthapuram have been on the rise in the recent past.

Keeping it low

The assumption that big-ticket properties are the obvious choice for non-residents is ill-founded. NRIs prefer their hometowns not only to stay closer to homes; affordability of the property is another major reason that keeps them home-bound. Of the NRIs, who would prefer to invest in their homes towns, 34 per cent will do so because property is comparatively affordable, shows the survey.

Quality concerns

After toiling hard in their professional life to make the most of their time in other countries, non-residents would like to enjoy quality of life when they come back home. This is another reason why they prefer smaller cities. The cost of living is big cities is much higher and there are a thousand things that keep your stress levels high.

How NRIs Can Invest In India

The home and the world

All things considered, most NRIs would still buy property only in their hometowns even if other locations look more promising. The survey shows that 82 per cent of the respondents looking for capital appreciation would stick with their hometowns even if there are greener pastures elsewhere. After living a great part of their life among strangers, more value is attached to personal ties and the same is reflected in NRIs' investment decisions.

Top choices

The preferred choices for NRI investors are cities of Kochi, Coimbatore, Bengaluru, Chennai, Ahmedabad, Hyderabad, Thiruvananthapuram, Chandigarh, Pune and Mumbai, shows the survey.