Non Resident Indian Investments Rocket by 35%

This year is looking bright for real estate players in India. This is with studies signalling that Non Resident Indians (NRI) property buyers' investment is forecasted to rocket by 35% against 18% in the previous fiscal year.

NRIs are now feeling feeling confident towards the new government of India and are awaiting an investment-friendly market within a variety of fields. This is according to said D S Rawat in a report, who is the secretary general of ASSOCHAM. According to a survey of 850 real estate developers conducted by the industry body, there has been a significant rise in the number of enquiries from NRIs. The survey was conducted in Ahmedabad, Bangalore, Chandigarh, Chennai, Dehradun, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune amongst others.

Rawat attributed this increase to the revitalisation of global economies. This is with people being more optimistic and seeking property to invest in. Both small and major developers are targeting the NRI base of the UK, US and Asia Pacific Region this year.

As reported by the survey, NRI property buyers have expressed inclination towards high-end commercial and residential properties across the country. A large number of enquiries are arriving from Indians primarily residing in Australia, Canada, the Middle East, Singapore, South Africa, the UK and US.

In terms of the most desired city, Bangalore ranked top followed by Ahmedabad, Chennai, Goa and Pune. Surprisingly, Delhi is among the least preferred real estate markets.

Bangalore tops in terms of investment from NRIs who are looking towards settling down in India during coming years. Major factors which motivate NRIs to invest towards Bangalore's property market is the booming IT sector. However, Ahmedabad has remained to be the most stable market by demand and absorption of both commercial and residential spaces. NRI's consider Ahmedabad as a safe place for investment, with lenient government regulations in regards to property investments by NRIs. Pune is ranked 3^rd with 30.5%, Chennai is ranked 4^th with 28%, as Goa is 5^th with 23%. This is as only 21% NRIs are interested in property purchases in Delhi.

In order to attract the cash-rich NRI clientele, real estate players have organised property shows and exhibitions as well as have expanded their existing distribution chains and entered strategic partnerships to encourage investments within the Indian property market.