NRI realty investment in India after Covid-19
Yash Miglani, MD, Migsun Group, believes that NRIs will start looking at residential properties too
In the Indian realty market, NRI investment has always held a special status for developers. There are several projects aimed specially to generate investment from them. The targeted NRIs comprise those living in the Gulf and the US. Post Covid-19, NRIs will play a significant role in the revival of the property market. The last few years have witnessed commercial segment getting generous attention from them but post Covid, this preference will also include the residential segment.
There are around 30 million NRIs but most of the investment is done by NRIs from USA, Saudi Arabia and UAE. The latest trend is the interest in affordable and mid-segment housing. The inclination is mainly due to government incentives and the spike in demand for houses that offers assured rental income. Commercial realty fetched them gains like capital appreciation and rental yield owing to the increasing demand for Grade A offices, IT parks, and logistics centres.
After the falling rupee value, the interest by NRIs is likely to get revamped and they could be interested in buying residential because of the emotional connect it offers. Tier II and III cities are witnessing a demand for commercial offices and thus a good ground for potential investment. Cities like Indore, Jaipur, Kochi, etc are coming up as places that attract investors in commercial spaces.
Post Covid-19, a lot of IT/ITeS companies will rationalise manpower and are likely to optimise their office real estate. These firms would consolidate offices across various locations and move to smaller cities. This will also open up new avenues for investment in commercial segment. One of the crucial reasons for increased NRI investment in real estate would be the fact that the investment markets such as Sensex are showing unstructured highs and lows. In all this, real estate has emerged as the safest investment option.
Real estate would also see attractive offers being extended to the group of high-potential clientele, and also technology will be leveraged to reach expatriate audience. Advanced technologies like Augmented Reality (AR) and Virtual Reality (VR) will help realtors to showcase project’s blueprint to investors across the globe in the Post Covid-19 scenario when people might choose to stay away from site visits.