Surge in NRI Investment Boosts Indian Real Estate Market

Mumbai: The participation of Non-resident Indians (NRIs) in India’s residential real estate market has seen a significant rise, now accounting for nearly a quarter of the total sales among large developers, up from just 7-10% prior to the pandemic.

Market analysis reveals that cities such as the US, Singapore, the UAE, Australia, and Saudi Arabia are witnessing substantial engagement, with developers establishing dedicated teams to assist overseas buyers.

Market insights indicate that DLF, India's largest real estate developer, reported that NRI purchases constituted about 25% (approximately ₹1,800 crore) of the sales in their recent Privana South project in Gurugram. For the fiscal year 2023-2024, DLF's sales from NRI investors reached around ₹3,400 crore, accounting for nearly 20% of their total sales.

As per "Ghar Research" the US has seen the most significant demand and transaction volume compared to other countries. The investment sizes from NRIs tend to vary by country. In the recent past, a strong response especially from regions like Dubai, Abu Dhabi, London, Singapore, Hong Kong, and the US, which have shown substantial inquiries and investments. There have been a a lot of Indian real estate deals worth ₹2 crore from the US and multiple deals exceeding ₹4 crore. The residential sector has attracted heightened interest from NRIs, leading to an uptick in sales.

As per a leading real estate broker in Delhi, the global geopolitical shifts and changing consumer preferences post-pandemic have increased the desire among NRIs to own property in their homeland.

A recent survey by Ghar.tv a leading Indian real estate portal revealed that a significant number of high net-worth individuals, many of whom are NRIs, plan to purchase luxury real estate in India over the next two years.

The strengthening of the dollar against the Indian rupee has made it more feasible for NRIs to invest in expansive properties in India, doubling their share in the local residential real estate market since the pandemic.