Commercial real estate has become a preferred investment vehicle for NRIs due to the high returns on investment.
India’s real estate market is set to grow with an expected compound annual growth rate of 9.2 percent from 2023 to 2028.
A recent survey of non-resident Indians (NRIs) has found that 52 per cent respondents are considering investing in commercial real estate (CRE) in India to diversify their portfolio. ‘The Neo-Realty Survey’ by MYRE Capital also highlighted that India’s real estate market is set to grow with an expected compound annual growth rate (CAGR) of 9.2 per cent from 2023 to 2028. Noida and Greater Noida areas are among these. Beneficiaries of NCR
According to the survey, 18 per cent NRIs prefer to invest in the commercial sector over the residential sector, while 9 per cent prefer the residential sector. The primary motivation for investing in CRE is the potential for higher returns, with 34 per cent NRIs citing this as an important factor. Additionally, around 48 per cent NRIs find it highly convenient to invest in CREs with the ability to identify assets and a straightforward investment process.
Sanchit Bhutani, Managing Director, Bhutani Grandthem said, “The NCR, especially the Noida and Yamuna Expressway regions, are among the preferred locations for NRI investments. The twin hubs offer immense potential and high ROI (return on investment). International Airport are expected to be operational in a few years and international companies are setting up their headquarters, NRIs are actively investing in properties in these areas.”
Saya Homes Managing Director Vikas Bhasin said, “Advances in technology have made it easier for NRIs to invest in the Indian real estate market. Shortlisting properties, sharing information and processes with developers and property consultants Understanding can now be done through online conversations.”
As a result, NRIs, even before they actually set foot in the country, have a fair idea about the properties they are interested in, he said. Digital technology has significantly reduced the need for physical visits by NRIs, thus saving them time, money and the hassle of moving from one property to another.
The report states that fractional ownership (FO) growth has accelerated this trend.
Salil Kumar, Director (Marketing & Business Management), CRC Group, said, “Noida has emerged as a leading destination for commercial real estate investment. It promises great returns on investment as the commercial RE (real estate) ) Several sustainable A+ grade buildings and projects have been launched in the segment. Fractional ownership is preferred by the NRI population as it is economical for them as they come to their native country only for a few months.”
Yash Miglani, Managing Director, Migson Group, said, “The favorable rupee-dollar exchange rate is another important factor that makes real estate investment in India profitable for NRIs. In addition, NRIs have an attachment to their country and often buy land to settle on when they return from their travels abroad.”
Sanjay Sharma, Director, SKA Group, said, “Commercial real estate has become a preferred investment vehicle for NRIs due to the high return on investment (ROI), which is generally 8-11 per cent compared to residential property (1.5- 3.5 per cent). Wise policy decisions by the Government of India such as the Real Estate Regulatory Authority (RERA) and the Goods and Services Tax (GST) have also encouraged NRIs to invest in the commercial office property market.”
The survey also found that 18 per cent NRIs believe that property management services, such as finding tenants and managing maintenance, are the main advantages of investing in commercial real estate over residential.
The top cities for NRI investment are Bengaluru, Mumbai and Pune, followed by NCR. However, recently there has also been an increase in interest in regional hotspots such as Ahmedabad, Lucknow, Chandigarh, Kochi and Indore.
