As NRIs continue to invest in the Indian real estate market with a growing interest in long-term investments, it is estimated that they will make up 20 per cent of the country’s real estate sector investments by 2025, according to proptech unicorn NoBroker.
Over the past year, NRIs have shown increased interest and participation in the Indian real estate market. In 2019–2020, NRIs accounted for approximately 10 per cent of total investments in the country’s real estate market.
Further, they are showing a preference to Bengaluru and Mumbai as their top investment destinations, with 29 per cent of respondents choosing the former and 24 per cent favouring the latter.
“Bengaluru has experienced a rise in rental yield due to its cosmopolitan lifestyle, quality educational institutions, and thriving startup ecosystem, making it an attractive investment choice. Similarly, Mumbai’s dynamic real estate market, which includes commercial, residential, and luxury properties, is appealing to NRIs,” the report said.
In terms of the most preferred configuration, the demand for 3 BHK units has increased, surpassing the demand for 1 and 2 BHK units, reflecting a preference for more spacious and versatile living spaces. Additionally, 26 per cent of NRI buyers are actively seeking properties with budgets exceeding ₹1 crore.
Despite the reported increase in NRI investments, challenges persist in this segment. According to the report, 82 per cent of NRI buyers have identified a lack of information and transparency as significant obstacles when navigating the Indian real estate market. This underscores the urgent need for improved accessibility and clarity in the property purchase process.