






{"id":30415,"date":"2022-09-13T13:01:20","date_gmt":"2022-09-13T06:01:20","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=30415"},"modified":"2022-10-31T09:01:07","modified_gmt":"2022-10-31T02:01:07","slug":"the-call-of-home-indian-real-estate-is-back-on-track","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/the-call-of-home-indian-real-estate-is-back-on-track\/","title":{"rendered":"The call of home: Indian real estate is back on track"},"content":{"rendered":"<p>Non-resident Indians (NRIs) lured by the weak rupee and better offerings in the luxury residential sector are helping to put the country\u2019s real estate market back on course<\/p>\n<figure id=\"attachment_30416\" aria-describedby=\"caption-attachment-30416\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-30416 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_263526509.jpg\" alt=\"\" width=\"1000\" height=\"664\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_263526509.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_263526509-400x266.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_263526509-600x398.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_263526509-768x510.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-30416\" class=\"wp-caption-text\">The surging demand from NRIs is helping to drive India\u2019s property market as it sees its fortunes reversed by the pandemic. szefei\/Shutterstock<\/figcaption><\/figure>\n<p>As India contended with a devastating Delta wave last year, the outlook for its housing market looked bleak.<\/p>\n<p>Fears of stagnating house prices were abounding as demand sank and cash stopped flowing, and many braced for a third wave of Covid-19 even worse than the second.<\/p>\n<p>As it happened, that onslaught failed to rival the second in intensity, and the industry is now steaming ahead, driven by the return of a long absent but crucial market for Indian residential real estate: non-resident Indians (NRI).<\/p>\n<p>According to a report by 360 Realtors, NRI investments in Indian real estate amounted to USD13.1 billion last year and are expected to grow by 12 percent this year.<\/p>\n<p>\u201cReal estate has always been the preferred asset class for NRI,\u201d says Mohit Jain, managing director of, Krisumi Corporation.<\/p>\n<p>\u201cThe last few months have witnessed a gradual comeback of the NRI to the realty market, bolstering sales of luxury homes.\u201d<\/p>\n<p>Indian expats account for about 6.5 percent of the world\u2019s 272 million migrants, the largest of all groups, and their contribution to India\u2019s economy is significant.<\/p>\n<p>According to a report by the World Bank in 2020, India received more than USD83 billion in remittances.<\/p>\n<blockquote><p>Real estate has always been the preferred asset class for non-resident Indians. And we\u2019ve witnessed a gradual comeback of the NRI to the realty market, bolstering sales of luxury homes<\/p><\/blockquote>\n<p>While NRIs began buying property in earnest in India in the mid to late 90s, demand had waned since the 2008 financial crisis.<\/p>\n<p>Now, however, amid a weak rupee and resurgent property market, that interest is coming back.<\/p>\n<figure id=\"attachment_30418\" aria-describedby=\"caption-attachment-30418\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-30418 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1958706283.jpg\" alt=\"\" width=\"1000\" height=\"477\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1958706283.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1958706283-400x191.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1958706283-600x286.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1958706283-768x366.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-30418\" class=\"wp-caption-text\">India\u2019s pandemic struggles were well documented, but the country\u2019s housing market is recovering well, partly due to an influx of investment from Non-Resident Indians. SumitSaraswat\/Shutterstock<\/figcaption><\/figure>\n<p>\u201cOne report has said around 40,000 NRIs are interested in buying property in India. That doesn\u2019t mean they are going to buy today, but they are interested in India as a place to buy their houses,\u201d says Dr Niranjan Hiranandan, founder of Hiranandani Group, an Indian Think-Tank specialising in real estate.<\/p>\n<p>In June, the rupee hit a record low against the US dollar as the global price of crude oil surged, raising concerns about a sustained rise in imported inflation.<\/p>\n<p>The partially convertible rupee was trading at 77.79\/80 per dollar after dropping to a record low of 77.81. The previous low of 77.7975 was reached on May 17.<\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/meet-curtis-chin-a-passionate-advocate-for-sustainability\/\" target=\"_blank\" rel=\"noopener\"><strong>More: Meet Curtis Chin, a passionate advocate for sustainability<\/strong><\/a><\/p>\n<p>Dhimaan Shah, founder and chief operating officer of luxury holiday home developer Isprava Group, said Indians in countries that use US dollars or peg their currency to it rush to buy real estate at home, knowing they can now get more for their money.<\/p>\n<p>\u201cWe are seeing a lot of traction from NRIs in the Gulf, which is traditionally a strong market for us,\u201d says Shah.<\/p>\n<p>\u201cIn addition to this, we are also witnessing strong demand from Singapore and Hong Kong as well. Over 30 percent of our business so far this year has come from NRIs in these markets, apart from London and Malta,\u201d he adds.<\/p>\n<p>Dheeraj Reddy, sales director of Pooja Crafted Homes, said one of the segments to benefit the most has been luxury.<\/p>\n<p>Indians living in developed countries have become used to a more comfortable and affluent lifestyle and wish for something similar in India, he says.<\/p>\n<figure id=\"attachment_30425\" aria-describedby=\"caption-attachment-30425\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-30425 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_240002701.jpg\" alt=\"\" width=\"1000\" height=\"434\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_240002701.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_240002701-400x174.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_240002701-600x260.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_240002701-768x333.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-30425\" class=\"wp-caption-text\">Mumbai\u2019s glitziest enclaves are especially attractive to wealthy investors. KishoreJ\/Shutterstock<\/figcaption><\/figure>\n<p>\u201cDue to the currency value and the appetite of the NRI buyers to invest in India, the demand for luxury properties is really increasing because they get a sense of familiarity with what they expect outside India,\u201d says Reddy.<\/p>\n<p>The surging demand from NRIs is helping to drive India\u2019s property market as it sees its fortunes reversed by the pandemic.<\/p>\n<p>India, which was one of the worst-hit countries by Covid-19, has achieved record sales and launch volumes in the first quarter of 2022, Knight Frank reported.<\/p>\n<p>\u201cThe pandemic seems to have cured the residential real estate market of the inertia it was gripped with,\u201d stated a recent report. \u201cLow interest rates, comparatively healthy affordability levels, healthy wage growth and a waning pandemic with lower risk of further disruptions have created a favorable environment for the homebuyer who has rediscovered his need for new and better housing.<\/p>\n<p>\u201cThis vastly increased the perceived value of one\u2019s home in the overall scheme of things, and along with the prevailing low interest rates, it sparked and sustained homebuyer interest in the residential market.\u201d<\/p>\n<figure id=\"attachment_30427\" aria-describedby=\"caption-attachment-30427\" style=\"width: 1000px\" class=\"wp-caption alignleft\"><img decoding=\"async\" class=\"wp-image-30427 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1504756949.jpg\" alt=\"\" width=\"1000\" height=\"444\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1504756949.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1504756949-400x178.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1504756949-600x266.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_1504756949-768x341.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-30427\" class=\"wp-caption-text\">Tech-forward, modern cities like Gurgaon, just outside New Delhi, are seen as indicators of the future shape of upscale urban living in India. NareshSharma\/Shutterstock<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Dr Hiranandani believes NRIs will continue to drive this boom as the rupee remains weak. But what happens when it is no longer?<\/p>\n<p>Already the central bank is moving to strengthen the currency by raising interest rates and stem inflation. In April, consumer price inflation rose to an almost eight-year high of 7.8 percent, well above the central bank\u2019s limit of 6 percent, in large part due to the war in Ukraine driving food and fuel prices.<\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/real-estate-sector-turns-to-proptech-amid-the-global-health-crisis\/\" target=\"_blank\" rel=\"noopener\"><strong>More: Real estate sector turns to proptech amid global health crisis<\/strong><\/a><\/p>\n<p>Dr Hiranandani believes, however, that the trend of recent months signifies a shift that will continue even if the rupee strengthens. Major cities have developed to offer the kind of lifestyle NRIs can get in the likes of London or Dubai. At the same time, sales are no longer driven by word-of-mouth, but by a sophisticated online presence and branding among developers and estate agents.<\/p>\n<p>\u201cThe future looks good in India in terms of opportunities to grow,\u201d he says. \u201cThe Prime Minister talks about how India is looking forward to the next generation of development. So overall interest in Indian real estate is growing.\u201d<\/p>\n<p><em>The original version of this article appeared in\u00a0<a href=\"https:\/\/issuu.com\/propertygurupropertyreport\/docs\/pr_no.173\" target=\"_blank\" rel=\"noopener\">Issue No. 173<\/a>\u00a0of\u00a0<a href=\"https:\/\/issuu.com\/propertygurupropertyreport\" target=\"_blank\" rel=\"noopener noreferrer\">PropertyGuru Property Report Magazine<\/a>. Write to our editors at\u00a0<a href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"nofollow noopener\">propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Non-resident Indians (NRIs) lured by the weak rupee and better offerings in the luxury residential sector are helping to put the country\u2019s real estate market back on course<\/p>\n","protected":false},"author":9,"featured_media":30416,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[97,92],"tags":[216,1358,512],"class_list":["post-30415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-magazine","category-news","tag-india","tag-luxury-housing","tag-residential","news_country-india","news_author-george-styllis"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin 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