Cities that are witnessing massive infrastructure development and present excellent growth and appreciation potential are the ones that attract NRI investments. And cities that fall out of favor for the resident Indian market due to any number of reasons also tend to be ignored by the NRIs.
Places like Gurgaon, Pune, Bangalore, Chennai, and Kochi have probably witnessed the maximum NRI investments in the last few years. There have also been a lot of investments into tier-2 cities as well. It is safe to assume that 10-15% of the inventory in a city is usually invested into by NRIs.
Investors from the Gulf and the South East Asian countries tend to predominantly invest into the Southern part of the country. Canadian NRIs who tend to be from the Northern belt, predominantly Punjab would invest into Gurgaon and Chandigarh. Tech professionals and high income NRIs from the US, tend to invest into Bangalore, Chennai, and Pune.
Bangalore, however, continues to be a hot destination for NRIs because it is one of the most stable real estate markets in the country, right now. Speculative buying has come down drastically and the price points are affordable within the city limits or new areas under development. Compare and contrast it with Gurgaon or even Chennai where there is lot of speculative buying or steep and unreasonable increase in prices that can make investors jittery.
Added to that, despite coalition governments and the lack of speedy progress in infrastructure, Bangalore still attracts the best companies in the world and continues to maintain its tag of being the Silicon capital of India. This in turn attracts talent not only from other places in India, but also returning NRIs who want to come back to India. That remains the key for Bangalore being able to continue attracting NRI investments.
Author: Sunder P, CEO – HomeShikari.com
The views expressed in this article are the author’s own.