NRI property buying picks up on pandemic, weak Re, low rates

A lot of non-resident Indians (NRIs) returning home during pandemic is leading to a rise in housing demand in the country.

Also, a weaker rupee and lower interest rates for housing loans is fuelling the surge in NRI investment in real estate sector, according to NoBrokers.com.

The portal surveyed 700 NRIs using phone and email interaction. The survey found that NRIs prefer larger homes in integrated townships, which offer lifestyle features similar to what they have experienced while being expatriates in a foreign country.

This populace is either investing in ready-to-move properties which reduce the construction risk. The survey data shows 40 per cent growth in interest in gated community in past one year in Mumbai city as gated communities offer more security, ease of living.

Amit Agarwal, Co-Founder & CEO, NoBroker said, "Ever since the first wave of the pandemic, we have observed an increase in interest from the NRI community. Initially, it was due to the safety aspect as India was one of least hit companies in the first wave and later also because the government announced many policies and measures that made homebuying more affordable. Weakening of the rupee added another shot in the arm for NRI buyers. Most NRI buyers are looking for a society accommodation due to the security and hasslefree living offered through society apps and also because these units are easy to rent out if end use is not the current priority. ."

The NoBroker.com survey results further shows, in Mumbai, the preferred average ticket size ranges from Rs 70-75 lakh for 1BHK; Rs 1.2 to 1.8 crore for 2BHK and Rs 2 crore and upwards for properties with 3BHKs and more.

Also, the platform has observed maximum demand from buyers in the US.

Nigama Varshney, an NRI home buyer says, "It was a great experience using NoBroker for buying property in Mumbai. Compared to rent, there are many more questions and doubts when the decision is about buying the property. The platform helped us make the decision. We wanted to buy a house in Mumbai since we plan to return to India a few years later. Property prices have stabilised now and hence we took the decision to go for a gated community with amenities for us and our kids."