Non-Resident Indians (NRIs) seem to be interested in investing in luxury homes post-COVID-19. The majority of them (73% ) now prefer properties priced between Rs 90 lakh to Rs 2.5 cr, as per ANAROCK’s latest consumer survey. In the pre-COVID survey (H2 2019), just 41% preferred properties within this price bracket- most favoured affordable and mid-segment homes. 3 and 4 BHK options currently top their wish-list. SURFACES REPORTER (SR) is sharing the reasons that have made the NRI’s to invest in luxury homes.
Also Read: Residential in Delhi NCR sales move up 38% in Q3 2020 | Ready-to-move-in homes in higher demand
According to the ANAROCK survey- rising instances of delays and consumer activism in the last few years had impacted the home sales from this segment. Bengaluru is the preferable investment city for 24% of NRI respondents, followed by Pune with a 19% share. Collectively, these two cities saw approx. 48,370 homes sold in 2020 - accounting for a 35% sales share among the top 7 cities.
See here are the top preferred cities for investment amongst NRIs as per ANAROCK:
Top Preferred Cities for Investment
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|
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Bengaluru
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24%
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Pune
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19%
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NCR
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16%
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MMR
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14%
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Hyderabad
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12%
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Chennai
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10%
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Kolkata
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5%
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“The COVID-19 pandemic has increased NRIs' emotional association of long-term security with physical assets. 63% of the polled NRIs state this as their reason for buying homes in India now. They are also driven by the uncertainties posed by COVID-19. Luxury properties have emerged as a hot favourite with NRIs because of the depreciating rupee value translating into greater buying power, coupled with ongoing developer discounts and offers. A majority of NRIs is buying for end-use, not as investments,” said Prashant Thakur, Director & Head - Research, ANAROCK Property Consultants.
The survey clears that 67% NRIs are looking for ready-to-move-in options. After analysing the overall survey trends (including NRIs and resident Indians), it is also apparent that just 29% preferred to buy RTM homes, with another 27% respondents preferring under-construction properties that will be delivered within a year.
Preferred Construction Stage
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RTMI
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67%
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To be ready in 6 months
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14%
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New-launches
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10%
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To be ready within a year
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9%
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Further, the survey discovers that out of 24% of survey respondents who have already booked property in the last six months, at least 38% were NRIs looking to make the most of India's prevailing market conditions, including discounts, offers, and lowest-best home loan rates.
The other noticeable point of this survey is that 86% of NRIs are interested in buying properties from branded developers.
Also Read: Residential Property Sees Sharp Recovery in Q2 FY21 with 60% Sales Growth, Says ICRA
Mostly property-seeker NRIs are aged between 35-45 years of age. 68% out of the total NRI survey respondents find that real estate is the best asset class for them at the moment.
44% of NRIs feel that the property prices will remain stable in the short-term (i.e. 12 months), while 27% feel they will increase during the year. Maximum NRIs (92%) believe that prices will increase over the long term (i.e. in 5 years).
Pricing Outlook
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1 year
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>5 year
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Prices will increase
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27%
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92%
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Can't say
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11%
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0%
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Prices will be stable
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44%
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6%
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Prices will decrease
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18%
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2%
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