The last fiscal in India, saw every fourth house being sold to a non-resident Indian (NRI). The trend has seen a rise, and owing to many factors including the launching of new projects by various builders such as Niranjan Hiranandani of Hiranandani Developers; Chandru Raheja of K Raheja Corp; Chaudhary Raghvendra Singh of DLF Ltd and more.
The segment that has seen the maximum demand among NRI’s is luxury residential. An increased interest of people settled abroad to invest and move to India, has given the market a new life span altogether.
The luxury homes in the range of Rs 5 – 10 crore bracket are amongst the ones that are most preferred. The NRIs settled in UAE followed by UK, Saudi Arabia, Singapore, Kuwait and Qatar are amongst the ones with the maximum demand for these homes.
Majorly, the metropolitan cities have seen a surge in the number of NRIs. Delhi, Mumbai, Bangalore and Hyderabad, among others are the ones where key realty players have started developing new projects catering to the needs of NRIs.
Although the luxury housing markets demographic is limited as compared to other segments, the overall contribution it makes holds a significant value in the market. In Mumbai alone, the prices of luxury properties have risen by up to 20 per cent since 2016. This is a statistic that showcases a clear interest of NRIs in the Indian luxury real-estate sector.
Owing to the price tag that comes along with every house, the net worth of these houses runs up to hundreds of crores. Even during the dry spell in the past few years, stakeholders such as Niranjan Hiranandani of Hiranandani Developers; Chandru Raheja of K Raheja Corp; Chaudhary Raghvendra Singh of DLF Ltd, among others have brought successful projects to the market, that have witnessed an amazing response by NRIs. DLF reported a turnover of around Rs 450 crore by quarter three of the FY18, is a proof of the booming luxury sector.
Reforms like RERA, GST and demonetization have played a major role in defining the luxury property market along with the interest of NRIs. Another primary reason that backs this is the tax free mortgage that NRIs can avail for buying property in India. Thus, reverse mortgage comes into picture, giving them double benefits.
Chandru Raheja, Niranjan Hiranandani, and other names, who have been influential in shaping the luxury housing market, believe that the returns on investment in the realty sector for NRIs are very high. Rental income, along with the capital appreciation is one of the aspects that draws them to Indian realty markets.
Despite the fact that the real estate industry fought many wars, it came out strong. The number of investors might be less, but form a stronghold on the market with their solid backgrounds. Even though the market witnessed the anger of changing realty laws, it has survived through micro-markets such as luxury housing and managed to move forward at the right pace.
Latest posts by Martina Smith (see all)
- From Football to Sprinting: Hima Das’ story will make every Indian proud! - July 30, 2019
- Top 5 projects of IRB Infrastructure Developers Ltd - July 25, 2019
- RBI Repo Rate Cut by 25 basis Points; Real Estate Sector Lauds The Move - July 24, 2019