The real estate market in India is truly experiencing a big surge in investment from Non-Resident Indians or NRIs. A report published in 2023 states that NRI’s contributions in the real estate sector will reach an overall of around 20% up from 15% in 2023. This trend is growing due to multiple factors. Some of these factors for NRI real estate investment are:
Emotional Connection
NRIs have a deep connection with India and a strong emotional connection with their motherland and view real estate as a way to always be connected to their homeland.
Potential for High Returns
Real estate in India has almost provided a great return on investment, with property prices going on an upward trend.
Growing Economy
The robust economic growth of India has provided for a stable and steadily increasing investment environment.
However, choosing the right city as the market for real estate is vast and diverse, and can be tiresome and difficult, especially for NRI customers. Here’s how to do that:
Why Should NRIs Choose the Right City?
The success of choosing the right city for an NRI directly depends on multiple factors. Some of these common factors are rental yields, job market dynamics, quality of life, or property appreciation potential play a big role.
Top 6 Cities for NRI Real Estate Investment in India
Let’s discuss the six major cities of India. These are the top cities for NRI real estate investment. Each city in this list has some distinct advantage over the other. These are the best cities for NRI property investment. These cities have big investment opportunities and are a major driver of the Indian economic system. These cities create millions of jobs and provide other opportunities as well.
1. Delhi NCR
Delhi and its National Capital Region or NCR are at the top of cities for cities with high ROI for NRI real estate investors. The best choice for NRI investment. From the old times, land ownership and real estate investments flourished. Whether it’s residential or commercial, these are the best property to invest in Delhi NCR. From budget properties to luxury real estate to commercial complexes to shopping malls.
Diverse Investment Options
From residential apartments to commercial properties or even mixed-use developments, these cater to different investment needs. According to a report published by the agency Knight Frank India, The real estate market of Delhi NCR has witnessed 12% new launches in 2023 alone.
Strategic Location
From the proximity of government offices to major financial areas and business districts in Noida and Gurgaon. Plus the availability of major educational institutions like IIT Delhi has significantly increased the property value of Delhi NCR.
Budget Flexibility
The investment opportunities here exist across different budget ranges thus allowing NRIs to find the perfect fit. For example, areas like Noida have different budget options available.
Know More: Important Checklists for NRIs Investing in Real Estate in India
2. Mumbai
The city of Dreams – Mumbai is still considered a top choice although NCR is slowly taking the crown from that place. It has a great capital appreciation for residential and especially commercial properties. According to a report published by JLL India, office rentals have increased by around 7% in the fourth quarter of 2023.
High Rental Demand
The constant demand for professionals has created a great demand for rental properties, thus ensuring steady income for investors. A survey constructed by CBRE states that rental yields can range from 2 to 4% based on property types and location.
Infrastructure Development
Ongoing infrastructure projects like the Mumbai Metro improve the connectivity of that place and help in enhancing property appeal.
Know More: The Future of Indian Real Estate Market: Trends and Opportunities for NRIs
3. Bengaluru
Called the IT hub of India, Bengaluru is the megacity of south India with great resources big manpower, and huge career opportunities. Bangalore creates vast amounts of opportunities for the new generation of workforce as well as great investment opportunities for real estate investors.
Thriving IT Sector
The presence of some of the biggest IT companies in the world like Infosys or Wipro has created a big job market and helped in increasing demands for residential properties. A report published by the organization Colliers India suggests that Bengaluru has increased by 15% in residential properties in 2023.
Investment Growth
Both commercial as well as residential properties in Bengaluru have shown great growth prospects. A report published by PropTiger indicates property prices have shot up around 8% in 2023.
Excellent Returns
Great rental yields from 3 to 5% (depending on location) make Bengaluru a great city for property investment and help in providing great NRI real estate investment opportunities.
Know More: Why NRIs Prefer Investing in Indian Real Estate
4. Pune
Becoming a modern hub of Maharashtra, Pune’s foundation for urban planning was done under the rule of Peshwas. Fast forward to this era it’s an emerging and rising hub and provides multiple opportunities for individuals from career opportunities to great real estate investment opportunities. Pune’s appeal for NRIs goes for:
Emerging Hubs
The city is emerging as a new IT and manufacturing hub thus attracting a workforce. A report provided by Anarock Property Consultants states that Pune has seen a rise of 20% increase in IT/ITES and thus more demand for the rental of these types of office spaces.
Affordable Properties
Compared to other cities, Pune has more budget-friendly property options. A recent CBRE report suggests that Pune has around 30% cheaper options than Mumbai in terms of property prices.
Rental Market Strength
A more concentrated environment of working professionals creates a strong rental market for people investing in real estate properties. This is a great option and better for the growing demand for NRI property investment in India.
Know More: Residential vs. Commercial Property: Which Investment Option is Better for NRIs in India?
5. Hyderabad
Another great city that’s on the rise was once the center for Nizams and later had grand palaces and forts and later saw the rise of PSU or Public Sector undertaking in the 20th century and the boom of the IT industry in the 2000s. The real estate has shifted in this direction as well.
IT Boom
Big IT companies have their offices in Hyderabad, making this city a hub for IT and paving the way for property investment. According to the report by JLL India, office leasing in Hyderabad increased by 25% in 2023.
Infrastructure & Connectivity
Hyderabad is undergoing a massive infrastructure investment from the Hyderabad Metro to better connectivity for the city. This helps in increasing the property values of the city.
Competitive Prices
The property prices in Hyderabad are still at competitive levels thus providing multiple options for NRIs to invest in this city.
6. Chennai
Beginning the journey as a city under colonial rule under British rule. After independence, the city became a great hub for manufacturing and education as well. Real estate has evolved to accommodate industrial growth through the rise of factories, residential neighborhoods, and office spaces. The gem of South India, this region attracts NRIs with:
Robust industries
Chennai has some of the best industrial as well as manufacturing sectors helping drive property prices. A report published by Cushman & Wakefield suggests that Chennai has witnessed a 10% rise in office space absorption.
Growing Residential Market
The residential Estate Market has witnessed a great upward trend and the report published by PropTiger suggests that residential property in Chennai is up by 6% in 2023.
Stable Returns
Investors can have a great capital appreciation and steady rental income ranging from 2.5% to 4% based on location.
Know More: Benefits of Investing in Commercial Real Estate in India for NRIs
Conclusion
These 6 cities – Chennai, Hyderabad, Bengaluru, Pune, Mumbai, and Delhi NCR- have high ROI for NRI real estate investors. If the NRIs invest in Indian real estate these cities will provide the best financial potential for their investments. But remember to do your thorough research and due diligence before investing. These are some factors influencing NRI investment in Indian cities.
For any personalized recommendations, do consult based on your investment preferences like some trusted developers like Omaxe LTD, one of the best Real Estate companies in India that have a proven track record of developing mega projects in all major cities.
