Investment in the Indian property sector increase by 18% in YTD 2022

NRIs have been most interested in buying luxury properties and holiday homes

There is a higher rate of appreciation expected in the Indian luxury segment than in the development market. SNEHIT PHOTO/Shutterstock

In India, investment in the property sector went up by 18 percent in the January to September period. In a study by Colliers, it mentioned that inflows reached USD3.6 billion in 2022 year-to-date.

It was also during this period that Delhi-NCR saw the highest share of inflows at 21 percent while multi-city deals saw a 45 percent share in investments.

More: India sees surge in home sales, top cities include Mumbai and Bengaluru

Domestic investors accounted for 18 percent of shares, up from last year’s 14 percent. Foreign capital inflows into the property sector, on the other hand, grew three times, reaching USD24 billion from 2017 to 2021.

Meanwhile, NRI investment in the real estate market has increased, reported Mint. As a result, the consumer market pool has expanded for developers, who are now able to level up their projects to meet global living standards.

In India, NRIs have been most interested in buying luxury properties and holiday homes.

“The NRI real estate investments came at a time when the Indian real estate market was slowing down. They have shown a strong interest in luxury homes and vacation properties, with a significant proportion of bookings occurring in those categories. It is also a promising indicator for the real estate industry, as it is consistently chosen as an appealing asset enticing greater and more favorable returns compared to any other investment,” said Suren Goyal, Partner, RPS Group

Luxury housing has historically been preferred by NRIs to suit their lifestyles, according to Times of India. High luxury demand is also a result of the rising income levels in India.

There is a higher rate of appreciation expected in the Indian luxury segment than in the development market. Due to the large number of affluent people who are interested in luxury properties, luxury real estate offers a higher lifetime rental yield.

Ultimately, things are looking up for India’s luxury segment, with the help of NRIs and India’s rising income levels.

The Property Report editors wrote this article. For more information, email: [email protected].

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