If recent property market trends are anything to go by, the Delhi-National Capital Region (Delhi-NCR) has certainly scaled above the ranks to emerge as one of the most popular destinations in India for NRI investment. It is a known fact that the nation’s real estate sector owes a significant chunk of the credit for its overall growth in the past decade to Non-Resident Indians. But among the various factors that compel NRIs to put their finances into Indian real estate, location plays quite a pivotal part. Hence, many of them seem inclined to buy property in Noida and other regions of Delhi-NCR, as well as other major metropolitan cities.
Industry Trends in Favour of Delhi-NCR
Recent Investment Behaviour of UAE-Based NRIs:
According to a survey conducted by Square Yards - a leading Proptech brand - 56% of total properties purchased by NRIs in the UAE during 2021-22 were situated in Delhi-NCR, followed by 22% in Bengaluru, 11% in Mumbai, and 6% in Pune. The insights from this data also suggest that 53% of the UAE-based NRI investors are aged over 45 years, while the rest belong to the age group of 35-44. This implies that almost half of this demographic is middle-aged, which in turn shows that they prefer to buy a second home in their native country as a part of their post-retirement plan, or for investment purposes.(Source: Economic Times)
Consumer Sentiments of NRIs Across the Globe:
In a Consumer-Sentiment survey jointly conducted by real estate consultant and developer ANAROCK and the Confederation of Indian Industry (CII) during the post-COVID period of 2022, 60% NRI respondents displayed interest in buying second homes in Hyderabad, NCR, and Bengaluru. The survey covered 5,500 respondents, of which 7% were Non-Resident Indians from the USA, Canada, Europe, Asia, and Gulf countries. Hyderabad was the preferred investment location for 22% of these NRI respondents, then NCR came a close second with 20% votes, and Bengaluru bagged 18% of the votes. As per the findings of this survey, the first nine months of 2022 experienced a rise of 15-20% in the demand for housing among NRIs, compared to the corresponding period of 2021. It was also discovered that 77% respondents would purchase larger houses - with 54% preferring 3 BHK flats in Noida / Delhi-NCR or other high-ranking locations, 23% preferring 4 BHKs, and 22% preferring 2 BHKs.(Source: Outlook India)
Decoding the Interest of NRIs in Delhi-NCR’s Residential Properties
Depreciating value of the Indian rupee
A depreciation in the Indian rupee’s value, coupled with a continuously-soaring demand in the residential real estate sector, can be deemed responsible for the rising interest of NRIs to make investments back home. Even in the face of constant repo rate hikes and increasing home loan rates at the time, the high demand for NCR properties among NRIs stems from the region’s profitability for long-term investment.
Insights: Based on the latest data collected by ANAROCK, housing sales in Noida-Greater Noida saw a decline of 23% during the last quarter of FY22, as opposed to the 10% increase in sales seen in Gurugram during the same period. However, real estate experts opine that since the lack of new project launches was among the main reasons behind this drop in Noida-Greater Noida property sales, the market will surely see a revival with several upcoming launches set to take place in the near future. (Source: Hindustan Times)Demands for a high-quality lifestyle
Delhi-NCR is a region where buyers can invest in bigger homes - for instance, many upcoming residential projects in Noida feature 3 BHK, 4 BHK, 5 BHK luxury apartments, etc. Since these houses often tend to be complemented with an array of sophisticated amenities, they are considered to be equivalent to a high-quality lifestyle. This has garnered NRI investors’ special interest in the area’s realty projects, particularly because they have the spending capacity to invest in luxury properties.
The remote working culture
The ‘work-from-home’ culture or hybrid working phenomenon became predominant in countries all around the world owing to the global pandemic. With more and more people now working from homes, several working professionals started scouting for larger spaces that could accommodate their workstations along with providing ample space for their family, etc. - to befit a modern lifestyle that has become the ‘the new normal.’ As mentioned earlier, Delhi-NCR boasts properties with plenty of space, influencing NRIs to move back to their homeland or to invest in a retirement home for the future.
Infrastructural development and connectivity
NCR not only enjoys great connectivity with the national capital, but is also home to prominent commercial hubs along with residential development which amplifies its potential. Moreover, the region is witnessing rapid infrastructural development - the upcoming Jewar Airport in Noida, which is currently under construction, is a prime example. New Noida and the sectors in the vicinity of the Noida-Greater Noida Expressway are growing increasingly popular, appealing to NRI investors looking for luxury homes.
Thus, the popularity of Delhi-NCR can be attributed to a variety of factors that together make it one of India’s highly profitable investment destinations for NRIs. Judging by the latest market trends, the demand for properties in this area is unlikely to plunge anytime soon.
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