More NRIs want to buy bigger homes in the country, report says

  • Demand for larger homes has seen a surge in the post Covid time.
  • In fact, 77% of NRIs are looking to buy bigger houses, while 23% want 4 BHK houses.
  • The housing sector has seen a 15-20% increase in demand for INR in the first nine months of 2022 compared to the corresponding period of 2021.

Many Non-Resident Indians (NRIs) are seeking to return to their homeland keeping in mind the current economic situation due to the Russian-Ukrainian war and therefore are actively seeking accommodation in India.

“Despite the worst of Covid-19 now in the past, NRIs have clearly not forgotten the uncertainties associated with living in a foreign country during a major pandemic. Securing homes in India has become and remains a priority for NRIs. Indians all over the world,” said Prashant ThakurSenior Director and Head of Research, ANAROCK Group.

In fact, 77% of NRIs are looking to buy bigger houses, while 23% want 4 BHK houses and 54% want to buy 3 BHK properties, according to the CII-ANAROCK consumer sentiment survey.

The survey received 55,000 responses from IRNs, of which 7% were currently stationed in the United States, Canada, the Gulf, Europe and various Asian countries.

The demand for larger homes has seen a surge in the post-Covid era. “As schools and offices have reopened, the desire for additional living space remains intact. Many large IT companies and IT-focused startups are now operating on a hybrid work model,” the report states.

Notably, more NRIs prefer to invest in Indian real estate rather than stocks, mutual funds, gold and fixed deposits. Another reason NRIs prefer larger homes is the favorable exchange rate.

The percentage of NRIs looking for 2 BHK properties has increased from 40% in 2019 (pre-Covid) to 22% in 2022 (post-Covid).

” According Search ANAROCK, the period from January to September 2022 saw approx. 2.73 lakh houses sold in top 7 cities,” Thakur said.

The real estate market has generally seen a gradual recovery after successive Covid-19 closures. Demand increased further during the holiday season despite higher interest rates and biting inflation.

Bengaluru remains one of the best choices

bangalore was one of the top three choices among NRIs to invest in the housing sector before, during and after the Covid pandemic. Besides Bengaluru, Hyderabad and NCR are the top picks for NRIs this year. At least 60% of respondents agreed to search for properties in Hyderabad, 20% were eyeing the NCR region and 18% preferred Bengaluru.

Last year, Bengaluru, Pune and Chennai were the top picks for most NRIs.

While 63% of respondents want premium properties priced between ₹90 lakhs and ₹1.5 crore, 59% of NRIs prefer luxury properties priced between ₹1.5 and ₹1.5 crore, ₹5 crore.

Overall investment in Indian housing by NRIs has increased from 55% in the pre-Covid year (2019) to 71% this year. “On average, NRIs represent 10-15% of homes sold in a given quarter,” Thakur added.

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