Dubai: Real estate has become one of the preferred asset classes for most non-resident Indians (NRIs) after a brief lull caused by the global pandemic, industry experts have said.
Investment in the Indian real estate sector is witnessing a significant uptick from NRIs, and the construction business in the South Asian nation has made its way to become the third largest industry in terms of Foreign Direct Investment inflow. And what’s more? The Indian real estate sector is projected to grow to a size of trillion US dollars, said Dr Aman Puri, Consul General of India to Dubai and the Northern Emirates at the sidelines of the Gulf News India Property Show on Saturday.
“FDI in the sector, including construction development and activities, stood at US$54.17 billion from April 2000 until March 2022. It is expected to grow to a trillion US dollars by 2030,” explained Dr Puri. With more than 60 developers showcasing over 75,000 real estate properties for non-resident Indians (NRIs), the two-day Gulf News India Property Show kicked off at the Dubai World Trade Centre on December 10.
Organised by Maxpo Exhibitions, the range of properties exhibited includes land plots, mid to high-end apartments, and villas and bungalows, said Inayath Sait, Chairman, Maxpo Exhibitions. “The properties span across 50 cities- tier one, tier two, and tier three – across India,” added Sait. The Gulf News India Property Show was inaugurated by Dr Puri and Paras Shahdadpuri, Chairman of Nikai Group. The event is being organised in association with India’s National Real Estate Development Council (NAREDCO).
Record uptick in India real estate from NRIs
Dr Puri said, according to recent forecasts from the Investment Information and Credit Rating Agency of India (ICRA), Indian firms are expected to raise US$48 billion through infrastructure and Real Estate Investment Trusts (REITs) in 2022 compared to the $29 billion raised to date. “This is massive, and a reaffirmation of the commitment by NRIs for Indian real estate investment,” Dr Puri.
He added that the Indian real estate market is expected to exhibit a Compound Annual Growth Rate (CAGR) of 9.60 per cent from 2022 until 2027. “India is growing at a great pace,” he added. “The huge amount of inflows into the Indian real estate is a testament to the fact that the sector is attractive for investors. Obviously, the pandemic hit hard, but now we are back to an upswing,” said the Consul-General.
Paras Shahadpuri, Chairman of Nikai Group, could not agree more. Property and gold co ntinue to be two traditional assets that Non-Resident Indians (NRIs) are committed to when it comes to investment in India, said Shahadpuri.
The Indian economy is one of the fastest growing economies of the world, real estate is proving to be an attractive investment for NRIs.
“Added to the fact that the Indian economy is one of the fastest growing economies of the world, real estate is proving to be an attractive investment for NRIs. With more divestment coming, more opportunities are being made available for investors. Not to mention the rupee devaluation against the dollar, which has made NRI outflow even more attractive,” explained Shahadpuri.
‘UAE NRIs are a great catchment market’
At the Gulf News India Property Show, Rajan N Bandelkar of the National Real Estate Development Council (NAREDCO) said the exhibition is a great platform to showcase the multitude of properties available in India. “We are a premier real estate government industry association of India established in 1998 under the aegis of the Ministry of Housing and Urban Affairs, Govt. of India,” said Bandelkar. The company aims to provide the government, real estate industry and the general public a legitimate platform to address their concerns and find practical solutions for issues plaguing the real estate sector.”
“At the Property show, we will bring to light the standards of operations related to building, construction and marketing in India’s real estate sector. This is the first time we are here in the UAE, and we are already seeing a great interest from NRIs,” said Bandelkar.
Bandelkar said the real estate market is upbeat. “Post-pandemic, we are seeing a huge uptake once again. NRI interest in real estate properties, especially among UAE expatriates, has always been high. NRIs will never shy away from investing in a home in India. It is one of the basic reasons why they leave India to work overseas – so that they can build their dream home.” Arvind Ragam, Chief Executive Officer of Tricolour Properties, said he is bringing projects worth Dh500 million to the show. “We have 44 monthly EMI plans for the current market. In some units, we are recording average property appreciation and rental returns between 20 and 30 per cent, which is very attractive to prospective buyers.”
