Indian property developers are anticipating a 35% surge in enquiries from NRI-based purchasers as compared to last year about 18%, even as Bangalore remains their favorite destination, reveals the Associated Chamber of Commerce and Industry of India (ASSOCHAM) latest study.
The ASSOCHAM conducted a random survey of nearly 850 real estate developers in Delhi-NCR, Chandigarh, Mumbai, Kolkata, Bangalore, Hyderabad, Ahemdabad, Pune, Dehradun, Chennai etc. The survey reveals that interest for buying property by NRIs have increased by over 30-35% over the last year. “NRIs feel confident about the new government of India and waiting for an investment-friendly market in various fields”, adds the paper.
As per the ASSOCHAM recent findings, Bangalore is the most favourite property investment destination for NRIs followed by Ahemdabad (2nd), Pune (3rd), Chennai (4th), Goa (5th), Delhi (6th) and Dehradun (7th).
The majority of real estate developers said the NRI traffic is coming primarily from the UAE, U.S., Singapore, Australia, UK, Canada and South Africa. This year, the demand is more for the high-end property and commercial buildings.
Releasing the paper, Mr. D S Rawat, Secretary General ASSOCHAM said, “With the revival in global economy especially in the United States and Europe people are more optimistic and looking for property to invest in. The both small and big developers are focusing the NRI base in the US, UK and Asia Pacific Region this year.
As per the findings, the share of NRI sales are currently at approximately 18% and are likely to increase by 30-35% in the coming year, adds the ASSOCHAM paper.
To tap a large section of the cash-rich NRIs living overseas, developers are not just conducting property shows, exhibitions and opening overseas representative offices. They are also expanding their existing distribution chains and entering into strategic partnerships to encourage investors from this cash-rich segment also, adds the ASSOCHAM paper.
According to ASSOCHAM survey, Bangalore tops in terms of investment from Non Resident Indians (NRIs) who are considering settling down in India in coming years. The major factors that drive NRIs to invest in Bangalore’s property market is the booming IT sector. It has the largest concentration of leading IT and ITeS companies. According to an estimate, there are 2,200 IT companies, over 664 MNCs, 183 biotechnology companies, and 248 BPOs operating in Bangalore.
Growing number of IT/ITES companies in Bangalore provide lucrative job opportunities to NRIs who are considering settling in India. Moreover, exponential growth in infrastructure and real estate sector also contributes positively towards influencing NRIs to invest in the property market. The demand has also shifted from mid-segment housing to luxury housing in Bangalore, adds the paper.
Ahemdabad (32%) has continued to be the most stable market in terms of demand and absorption of both residential and commercial spaces. NRI’s consider Ahemdabad as a safe place to invest in, with lenient government regulations regarding property investments by Non Resident Indians.
Pune takes the 3rd place with 30.5%, whereas Chennai at 28% per cent assumes 4th position and Goa is at 5th position with 23% and Delhi with only 21% NRIs interested in investing in the capital city for property purchase, reveals the survey.
In Delhi, there has been a 21% rise in enquiries this year as opposed to last year from this segment and the majority of the queries have been for the residential segment. Catering to the growing demand among high-end segment, Delhi has also emerged the promising markets for real estate.