2 Feb 2023

The global real estate sector has felt the waves of a major economic slowdown. Despite this, the real estate sector in India has performed well over the past few months and recorded high sales and figures. The prices of residential properties have grown steadily, and new launches have been received well in the market. Undoubtedly, the NRI investments in the high-end real-estate sector have to be credited for the same.

NRIs strengthen the market

Most of the high-end property purchasers in India are non-Indians and non-residents who do not currently call the country home but are interested in investing in high-end real estate in India. They are well-informed about the latest luxury developments in India, especially ones that meet global standards, and are keen to make wise investments there.

The NRI investments in Indian real estate are expected to grow to a whopping USD 14.9 billion in FY22. This has expanded the consumer market pool for developers and builders alike, encouraging them to level up their projects to meet global living standards. And the developers of luxury and high-end real estate have, for the most part, been successful in creating projects that attract purchasers beyond geographical borders and satisfy the market.

Luxury investments steal the spotlight

Industry experts say that the NRI real estate investments entered the Indian market when real estate was slowing down. Their strong interest in luxury homes and vacation properties is a promising indicator for the real estate industry. NRIs consistently choose the luxury and vacation homes market as appealing assets that entice greater and more favourable returns than any other investment.

NRIs continue investing in high-end real estate as the segment suits their lifestyle better. They have adapted to a global lifestyle, with the finest conveniences and services at their disposal in the developed world. Their interest in the finest luxury real estate projects in India also stems from the fact that they want to maintain a lifestyle that’s as near as possible to their previous one.

Fluctuations in the Indian Rupee value

The US dollar and the UK pound have also strengthened against the Indian Rupee recently. NRIs, who live in countries with a stronger currency value against the INR, are at a dual advantage, as their money multiplies faster after conversion, resulting in a better gain. This has pushed NRIs to take advantage of their hefty pay checks and invest in high-end real estate in their native country.

Luxury investments also provide them a safe haven by yielding a higher rate of appreciation and greater life-long rentals. Market studies have shown that over the last few years, the average monthly rentals in India's top seven real estate markets have increased by 8-18% in the prominent luxury micro-markets. These markets include Mumbai’s Worli, Bengaluru's Rajaji Nagar, Delhi’s Gurugram, and the rest.

In recent times, India’s luxury real estate segment has seen unprecedented expansion, with upbeat consumer sentiment in high-end buyers and NRI investors. The digital boom has contributed significantly to the thriving high-end market. India’s increasing first-rate transportation system, seamless connectivity systems, innovative buildings, plush accommodations, favourable policies, and strategic placement of growth are all major contributors to the increasing NRI investments.

The luxury housing industry has become more robust, with an increasing demand for homes at par with international standards. In the coming years, the top markets are predicted to attract a large portion of investments from across the seas.

At Paranjape Schemes, we offer a spectrum of projects for every need and pocket. We are overwhelmed with response received at the Paranjape Mega Land Expo for our nature-centric plots, sea-view vacation villas, bespoke bungalows, luxurious mansions, and villas by our buyers. To know more about these projects, visit https://www.pscl.in/

References:

• //www.luxuryabode.com/blog/why-are-indian-luxury-properties-so-appealing-to-nri-investors/artid1785
• https://economictimes.indiatimes.com/nri/invest/nri-investments-in-real-estate-and-the-rising-dollar/articleshow/96372765.cms?from=mdr
• https://www.financialexpress.com/money/why-luxury-housing-investment-has-become-the-current-favorite-amongst-hnis-and-nris/2638200/