Source: The Hindu Businessline ( https://bit.ly/4eIxxc3 )

Investments by non-resident Indians (NRIs) into the Indian real estate market has surged over the past 20 months, growing at 15-20 per cent and their share in total investments in the sector is expected to rise to a fifth from 10-15 per cent earlier, according to industry players.

In 2023, NRIs invested over $13 billion in real estate and by 2025, their investments are expected to account for 20 per cent of total real estate investments in India, according to Saurabh Runwal, Associate Director, Runwal.

“Undoubtedly, NRIs constitute a significant part of the overall sales in the markets. In any given quarter, at least 10-15 per cent of total sales is by the NRIs,” said Santhosh Kumar, Vice-Chairman, Anarock Group.

While NRIs have always been investors in properties in India, the current surge in their purchases is being fuelled by the optimism in the Indian economy, stricter compliance norms for developers under RERA regulations and capital appreciation in properties, he said. The rally in the domestic stock markets has created wealth and that is being channeled into real estate.

Most NRIs prefer to buy properties priced over ₹90 lakh, according to Anarock. Within this, close to half were buying houses in the range ₹90 lakh to ₹1.5 crore, about a fifth in the range ₹1.5-2.5 crore and a tenth above that.

NRIs have traditionally preferred apartments by established builders, or existing bungalows as resale properties. With reputed builders entering the plotted development segment, some NRIs are investing in this as well.