Estate agents woo the ultra-rich, and many of them are NRIs. |
The Indian Rupee has consistently hit record lows over the past two weeks, and as the national currency weakens, NRI dollar earnings have gained influence in Indian markets. Property sales in India set to be hit by higher interest on home loans after RBI’s 50bp hike in repo rate, but CEOs and celebrities are driving up demand for luxury homes at mumbai. With the dollar and foreign currencies strengthening against the rupee, Indian developers are now courting NRIs, who can afford high-end homes in the country.
Real estate remains an attractive investment
Real estate accounts for 13% of India’s GDP, and foreign investment in the sector by NRIs is expected to reach nearly $15 billion this year, up $2 billion from 2021. Although the duty waiver stamp in Maharashtra is a factor that makes Mumbai Real Estate attractive, the city is third in terms of NRI investment in real estate, after Delhi and Bangalore. The maximum city accounts for 11% of real estate investments by expats living in the United States, United Kingdom and United Arab Emirates.
Rising Wealth in the Gulf Means More Investment for India
Although real estate in Dubai and Abu Dhabi is among the most desirable in the world, the rising strength of the dirham has triggered increased demand for Indian properties among Gulf Indians. A large proportion of India’s ultra-rich are NRIs and thousands more wealthy people are moving abroad this year. More than half own property in India and are also considering second homes in the country, making it an attractive consumer base for real estate companies.
According to a report by the Economic Times, 15% of buyers of their DLF’s luxury projects are NRIs, and the company also sends representatives to Hong Kong and London to present their properties. The rise of the dollar against the rupee also increases the purchasing power of NRIs, and a recovery in the property market after the covid, promises a better return on investment.
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