According to a report published by 360 Realtors, NRIs’ investments in real estate increased to $13.3 billion in FY 2021, up from an earlier estimate of $13.1 billion. According to the same report, despite the pandemic and a drop in buyer sentiment, NRI investment volume increased by 6.4 percent over the previous fiscal year.
According to a report published by 360 Realtors, many factors contributed to the increase in NRI sentiment and property sales. Factors like price cuts and attractive payment plans from developers also played a role in the resurgence of NRI sales with factors such as a drop in the value of the rupee. Forecasts indicate that investment will increase by 12% in FY2022, reaching $14.9 billion.
After being hit by the COVID-19 pandemic for two years, India’s economy and real estate are showing signs of recovery. People have realized the importance of owning real estate assets, particularly residential real estate, as sales in many cities have increased significantly. Low-interest rates on home loans encouraged affordable and mid-segment housing, while stamp duty reductions provided a much-needed demand boost. Positive news from 2021 will be carried over into this year, with some 2021 trends expected to gain traction in 2022. As a result, the majority of economic indicators have surpassed or surpassed pre-pandemic levels. As a result, the following are the top trends to look out for in real estate investment in India in 2022.
The Residential Real Estate Market Is On Solid Ground:
Residential property prices are likely to begin rising again after a prolonged period of falling and then stabilizing. According to the Knight Frank 2022 report, the residential property segment in the country will see a 5% capital value growth in 2022. Many of the supply and demand-side factors that have been assessed over the last decade have begun to put upward pressure on house prices. This momentum is expected to continue in 2022, as prospective homebuyers’ preferences for larger homes, better amenities, and more affordable prices will keep them interested in closing deals.
Foreign Direct Investments:
Foreign Direct Investment (FDI) continues to be an important growth driver, and this is true for real estate players as well. Indian real estate has been successful in attracting foreign capital, particularly in the residential market by NRI investments. With RERA ensuring transparency and laws allowing 100 percent FDI in construction, NRIs are investing heavily in Indian real estate. The new ultra-rich class is on a buying spree for luxury homes in global cities like Mumbai, Bangalore, and others. With a large portion of the vulnerable population already immunized, Indian markets are demonstrating their tenacity and potential, and it is now up to investors to decide whether they want to benefit from India’s future potential. Assetmonk is one of the most reputable platforms for NRIs looking to invest in the Indian real estate market. Assetmonk investment opportunities are considered the best choice for NRI investors due to their high growth potential deals from India’s best metropolitan cities, secure investment process, and IRR of up to 21%.
High Property Prices:
In 2020, 1.38 lakh housing units were sold. When compared to the previous peak in 2014, this represented a rock bottom of 60%. However, 1.45 lakh units were sold between January and September of 2021. This represented a 5% increase in sales in 2020. Demand for properties priced between Rs 75 lakh and Rs 1 crore in Delhi NCR is up by more than 20%. The trend, however, is not limited to this region and can be seen throughout India. And, as a result of ongoing infrastructure developments, the NCR has emerged as a popular destination, enticing buyers to consider the region an ideal place to live. Due to seamless connectivity and high-end infrastructure investments, a new segment of the corporate elite, including high net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs), will be evaluating the region for long-term revenue potential. Real estate will continue to be in high demand for business people and senior executives.
- The Rise of coliving spaces:
Businesses want to maintain cost-cutting flexibility in the face of a resurgence of COVID-19 caseloads. It has created a fantastic opportunity for co-working spaces to profit from the agility-demanding businesses. It, among other factors, has the potential to more than double the market size of co-working spaces over the next five years at a CAGR of 15%. Most firms, particularly start-ups, see flexible workspace as a great cost-cutting option, and they are taking it seriously. The rapid expansion plans of these major coworking players, as well as the pandemic-induced need to re-strategize workspaces, point to a bright future for this new asset class. Companies that return to the office will have to consider utilizing Flexi spaces to reduce costs and expenditure, which will increase demand for such spaces.
The Government’s Expectations:
The real estate industry has always been a dominating force, contributing significantly to the country’s economic prosperity. Buyers’ and developers’ expectations should rise in the coming months, as the sector has been the recipient of a slew of newly formulated government policies. The Indian real estate industry anticipates additional incentives and relaxation for a better 2022. The government is also expected to provide incentives, such as the introduction of tax breaks, to help increase public spending while reducing transaction costs.
Non-Resident Indians (NRIs) are paying close attention to the COVID-19 pandemic, which is characterized by low pricing and a falling currency. Despite a drop in overall market confidence due to the pandemic in 2021, NRI investment volume increased by 6.4 percent over the previous fiscal year. NRIs prefer budget ranges of Rs 90 lakh to Rs 2.5 crore, with a preference for 3 BHK and 4 BHK. NRIs will be drawn to the opulent homes currently under construction in the NCR. NRIs are concerned about their health in the aftermath of the outbreak, and projects that address this issue will be extremely beneficial. NRI investment in Indian real estate will continue to rise as a result of developments aimed specifically at NRIs. Both industry brokers and developers have realized that building digitally and reaching customers and stakeholders through digital means by increasing digital assets will enhance their businesses by improving the value chain.
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