Hyderabad: Be it for personal use or as an investment option, non-resident Indians (NRIs) are showing greater interest in investing in real estate ventures, especially residential homes and/or commercial properties. The real estate sector, which contributes seven percent to India’s GDP, has always been considered a safe investment option (…)
Updated – June 17, 2022, 11:25 pm
Hyderabad: Be it for personal use or as an investment option, non-resident Indians (NRIs) are showing greater interest in investing in real estate ventures, especially residential homes and/or commercial properties. The real estate sector, which contributes seven percent to India’s GDP, has always been considered a safe investment option not only by Indian citizens but also by NRIs. These expatriates view investing in real estate as a risk-free option and the returns on investment are usually high.
Several reports from various real estate surveys show that housing demand in various cities, especially Hyderabad, is primarily driven by end users, high-net-worth individuals and NRIs. According to a report by 360 Realtors, NRIs invested $13.1 billion in fiscal year 2021 and this is likely to grow by 12 percent to reach $14.9 billion in fiscal year 2022.
In the post-pandemic world, it has become even more important for these expatriates to own a home in their home country and this has led to an increase in real estate investments by these individuals. From investing in properties for personal use to seeing it as a stable return on investment venture, NRI investment in the real estate sector has been on the rise over the last few years.
According to experts, most of these NRIs prefer to invest in luxury and ultra-luxury properties, while some are considering investing a portion of their amount in commercial properties as well. Many developers are also considering building projects that cater to the needs and requirements of NRIs which may include spacious and smart homes.
“The fintech has created a one-stop solution for leasing, acquisition, lending and financial modeling for property financing. Not only Fintech but also the interventions of new age technologies are playing a vital role in enabling NRIs to invest in India without being physically present. Through PropTech, NRIs can visit a property virtually, and finalize their purchase with the click of a button through digital audit and smart contracts,” says Naveen Maypala, Founder, Urban Living.
Hyderabad market
In Hyderabad, the presence of a stable government as well as a growing IT population and developing infrastructure have contributed to the growth of real estate compared to other states. Keeping these points in mind, many NRIs or expatriates are investing in properties in Hyderabad for their consumption or as an investment option.
“Despite being a pioneer in the IT industry and experiencing increasing urbanization, Hyderabad remains an affordable location for both company owners and residents. In most areas of Hyderabad, the average cost of property ranges between Rs 5,000 to Rs 6,000 per square foot. As a city that welcomes expatriates with a thriving software industry, it boosts investment prospects in the rental real estate market in a big way as NRI investors prefer to invest in properties that offer rental value. generate income,” Maypala said.
With the recent adjustment in property prices, many NRIs can invest their money in real estate and the city is also developing several major commercial centres, enticing NRIs to make a bet. Commercial properties provide attractive investment properties with high capital appreciation and rental rates.