A recent survey of Non-Resident Indians (NRIs) has found that 52% of respondents are considering investing in commercial real estate (CRE) in India to diversify their portfolio. The “The Neo-Realty Survey” survey by MYRE Capital also highlighted that India’s real estate market is poised for growth, with an expected Compound Annual Growth Rate (CAGR) of 9.2% from 2023 to 2028. Noida and Greater Noida regions are among the beneficiaries of NCR.
The survey revealed that 18% of NRIs prefer investing in the commercial sector over the residential sector, with 9% preferring residential. The primary motivation for investing in CRE is the potential for higher returns, with 34% of NRIs citing this as a critical factor. Additionally, almost 48% of NRIs find investing in CRE highly convenient, with the ability to identify properties and a straightforward investing process.
“NCR, especially Noida and Yamuna Expressway regions, are among the preferred locations of NRIs investments. The twin hubs offer immense prospects and high ROI. With the international airport expected to be operational in a few years and international companies setting up their headquarters, NRIs are actively investing in the properties in these areas,” says Mr. Sanchit Bhutani,Managing Director,Bhutani Grandthum.
“Advancements in technology have made it easier for NRIs to invest in the Indian real estate market. Shortlisting properties, exchanging information and understanding the processes with developers and property consultants can now be done through online interactions. As a result, NRIs, even before actually setting foot in the country, have a fair idea of the properties they are interested in. Digital technology has considerably reduced the need for physical visits by NRIs, thus saving their time, money and hassles from hopping from one property to another” says Mr.Vikas Bhasin,Managing Director,Saya Homes.
The report notes that fractional ownership (FO) growth has accelerated this trend.
“Noida has emerged as a prime destination for commercial real estate investments. It promises great return on investments as lately many sustainable A+ grade buildings and projects have been launched in the commercial RE segment. Fractional ownership has been preferred by NRI population as it is economical for them because they come only for a few months in theirs native country” says Mr.Salil kumar, Director, Marketing & Business Management, CRC Group.
“The favourable rupee-dollar exchange rate is another key factor that makes real estate investment in India profitable for NRIs. Additionally, NRIs have an affinity for their home country and often buy land intending to settle down when they return from their overseas trip,” says Yash miglani,Managing Director,Migsun Group.
“Commercial real estate has become a preferred investment vehicle for NRIs due to its high return on investment (ROI), which is typically higher than residential property (8-11% compared to 1.5-3.5%). The Indian government’s wise policy decisions, such as the Real Estate Regulatory Authority (RERA) and Goods and Services Tax (GST), have also encouraged NRIs to invest in the commercial office property market,” says Mr Sanjay Sharma, Director of SKA Group,
The survey also found that 18% of NRIs believe that property management services, such as finding tenants and managing maintenance, are the main benefits of investing in commercial real estate over residential.
The top cities for NRI investment are Bengaluru, Mumbai, and Pune, followed by NCR. However, interest in regional hotspots like Ahmedabad, Lucknow, Chandigarh, Kochi, and Indore has also increased recently.