The return on investment in the Indian property market has started to take off after the pandemic-induced lull, and it will only get better, making this the ideal time to invest in the sector, a top Indian real estate official said on Saturday.
Attending the India Property Show organised by Gulf News, NAREDCO Events Committee chairperson Manju Yagnik said plotted development and mid-segment luxury are two categories NRIs are particularly interested in.
“NRIs have invested in the past and got very good RoI, and the promising returns have encouraged them to continue buying properties,” said Yagnik. “We are seeing a boom in the demand for property amongst NRIs from all over the world.”
Last year alone, the sector saw investments to the tune of $14 billion, and this number will only grow this year as, an optimistic Yagnik added.
“They (NRIs) are interested in properties that meet the global parameters because of their style of living.”
On-site amenities, accessibility to a good transport system and a great location are on the top of an NRIs demands when looking to invest in India, and developers are doing everything they can to meet such requirements, she said.
“All the unit utilities, necessities and everything should be on their doorstep for them to make their life easier. One of the reasons they are inclined towards township projects is because they have all entertainment, education, medical facilities within reach.”
NRIs should also ensure that the project is approved by India’s RERA and has a good financial institution backing it.
“It (property) should be marketable, so they can exit the market as and when they want,” said Yagnik. “And in case they would like to come and settle, it should be up to their expectations.”
The right time to invest?
According to Yagnik, this is the right time to invest as prices are increasing steadily. “I won’t say that it is at the peak.”
She said that with a lineup of properties ready to be launched, the RoI is very promising. “Lots of new launches are happening and it is evolving,” said Yagnik. “So I think it’s a very right time to invest in with a good entry cost.”
Interest in Tier 2, Tier 3 cities
Metropolitan cities have remained the first choice for NRIs, but has this trend changed of late? Yagnik thinks so.
“We have seen a sudden boom in demand in these (Tier 2 and Tier 3) cities because their roots are there,” says Yagnik. “Those are the people who are looking for properties in Tier 2 and Tier 3 cities.”
She said that the land availability in the metropolitan cities is not much and the NRIs are choosing farmhouses or villas in Tier 2 and Tier 3 cities rather than settling for high-rise buildings in the city.
Mumbai, Delhi, Bangalore, Hyderabad and Chennai are witnessing higher interests among the NRI community because of the infrastructure and opportunities in these cities. “The transition is very easy when it comes to these cities,” said Yagnik. “The RoI is also very high in the city.”
According to Yagnik, prices for a 2BHK apartment with day-to-day amenities within reach hovers around Rs10 million. She reckons that in the southern part of India, this can go down to Rs3-5 million.
“A normal 2BHK apartment, in a location which is all close to the hub of the city, hovers around Rs10 million,” said Yagnik. “In Bangalore and Chennai, you will get something around even Rs5-6 million.”