Housing has historically been the preferred investment option for the expatriate Indian diaspora. It remains a safe alternative to the other available risk-prone investment options. Though the range of property options available for non-resident Indians (NRI) today are spread across India, the western and southern regions have drawn a significant amount of interest as many NRIs hail from there.
As per Anarock research, the Mumbai Metropolitan Region (MMR) drew the lion’s share of new housing project launches, with 23,045 new launches in the second quarter, followed by NCR (National Capital Region), Bengaluru and Pune.
NRIs have an affinity towards specific micro-markets within MMR, Bengaluru, Noida and Pune. Several residential projects (both affordable and luxury) have come up across these key property investment hubs.
A permanent attraction
Key regions within the Mumbai Metropolitan Region that are drawing NRIs are the peripheral central suburbs, parts of the western suburbs, the central suburbs (upmarket areas like Wadala) and Thane. As per Anarock research, these markets have seen growth in capital appreciation as well as sales velocity in the recent past.
Pune has also been on the buying radar of NRI real estate buyers and investors foryears. Micro-markets like Kalyani Nagar, Hinjewadi and Balewadi are the most sought-after locations and offer a range of residential property options.
In Bengaluru, the economic hubs in the southern and eastern parts of the city are among the favourites for NRI investors. Micro-markets like Devanahalli, Whitefield and Sarjapur Road offer a bouquet of premium and affordable residential projects.
Interestingly, while the central suburbs of most big cities in India are seeing a lull in demand, the peripheral areas along with upcoming commercial and retail hubs within the city boundaries are seeing both capital appreciation and sales velocity. Thanks to the federal government’s determined infrastructure push, these areas have increasingly good connectivity and property prices are lower than the central suburbs — apart from the scope for further negotiation.
Shajai Jacob is CEO — GCC, Anarock Property Consultants.