Move Over Commercial Properties, NRIs Now Prefer Investing in Residential Realty

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The dynamics of real estate market have always been unpredictable. Major cities like Delhi, Mumbai, Bengaluru, Hyderabad, Chennai and Pune are experiencing different situations in their real estate sector. The major reason behind this constantly changing environment is investment. In recent times, NRI investors have shifted their sight from commercial to residential real estate.

The biggest reason for any investment is location. It is the make or break aspect, be it for homes or office spaces. Residential plots are chosen by builders with connectivity as the primary aspect. With time, investors have observed that requirement for houses has an exponential graph because of increasing population.

Every day, people, professionals and aspirants migrate to metropolitans and they require a place to stay in. This demand is met by multiple online portals and investment in residential estate becomes instantly productive with easy financing of houses taken on rent.

Commercial property may look like the one with higher returns, but the risks are equally higher. It is difficult to reassign the property to another business if the previous one fails and long droughts may come into the picture, which hampers its public image. Investors have observed this dependency and started to locate potential in residential projects.

Consider Hyderabad for example. People are constantly moving in to find a job in any of the IT parks or corporate hubs. This has identified the open plots in Aushapur as a prime real estate opportunity. With its connectivity to Raheja Mind Space IT Park and Infosys campus, working professionals are constantly looking to acquire plots in future projects like Pinewood Homes by Modi Builders. The legal formalities and paperwork is also easier than commercial real estate and helps in cost cutting.

Read More: Hyderabad Are Emerging as Ideal Destinations for Homebuyers

The reduced risk of damage in residential real estate has also made the investors have an eagle eye on the open plots at Shamshabad. There is change in the trend in NRI investors looking for a short, profitable stint. It is the age of long-term and stable investment that can be turned into an asset with minor additions. Greenville by Modi Builders has been the go-to choice for many corporate workaholics as Rajiv Gandhi International Airport is nearby the housing project.

The demand for real estate market keeps fluctuating on a daily basis. The race of commercial vs residential will never end but it looks like NRI investors have tipped the scales towards residential real estate. With potential projects and upcoming ventures, a great surge is expected in its market anytime soon.

Last modified: July 14, 2018

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