SAURABH GARG

Co-founder & Chief Business Officer,

NoBroker.com

Foreword
In recent years, the Indian real estate landscape has witnessed a significant surge
in the interest from Non-Resident Indians (NRIs). This surge is chiefly driven by a
confluence of factors such as increased rental yield, continued depreciation of
Indian rupee, favourable government policies, and the resilience shown by Indian
real estate sector in the face of adversity. These investments are not solely
motivated by financial considerations but are also deeply influenced by the
emotional bonds that NRIs maintain with their country of origin.

Being a tangible asset, real estate can generate a wide range of income streams
while simultaneously appreciating in value. Returns are directly proportional to
the time you stay invested.

As per a survey conducted by NoBroker, real estate is a relatively safer investment

option than other assets like stock markets and crypto. Stocks and bitcoin are too
unpredictable in uncertain market conditions such as the pandemic, inflation,
and recession. Besides that they are not everybody’s cup of tea. Conversely, real
estate has demonstrated a track record of consistent growth over the past few
decades, positioning it as a stable and dependable investment choice for those
seeking long term financial security.

As the country’s real estate market continues to evolve, this report delves into the
key drivers and implications of NRI investments, shedding light on the dynamics
of this increasingly vital segment and its impact on the overall growth and
development of the Indian real estate sector.

Over the last couple of years, India has witnessed increased interest from NRI
customers for property purchase both for self-use and from an investment point
of view. The report in the following pages unveils interesting patterns and
behaviours of NRI community and its contribution in shaping the country’s real
estate sector.
NRI Contribution in Indian Real Estate Over
the Last 5 Years
The contribution of Non-Resident Indians (NRIs) to the Indian real estate sector
has witnessed a notable and steady growth over the past few years. In the fiscal
year 2019-2020, NRIs were estimated to account for approximately 10% of the total
investments in the Indian real estate market. However, in the ensuing years, this
figure has seen an upward trajectory, and currently, NRIs contribute around 15% to
the Indian real estate sector. This increase in NRI investment can be attributed to
various factors, including their strong emotional connect with their home
country, a desire to secure property for future use, and the favorable policies
introduced by the Indian government to attract foreign investments. This trend
underscores the continuing confidence of NRIs in the Indian real estate market as
a promising avenue for long-term investments and asset diversification. By 2025,
NRIs will contribute to 17%

16%

14%

12%

10%

10% 10% 12.27% 10.28% 12.50% 13.83%

2019 2020 2021 2022 2023 2024

By 2025 NRI's will contribute to 17% of the overall Primary Sales

Key Highlights
Bangalore And Mumbai Are the Chosen Destinations
for NRI Buyers
With its cosmopolitan lifestyle, world-class educational institutions, and a thriving
startup ecosystem, the rental yield of Bangalore has gone up substantially,
making it a good investment destination. Similarly, Mumbai offers a dynamic real
estate market driven by a mix of commercial, residential, and luxury properties. Its
status as an international business hub, combined with its rich cultural heritage
and vibrant lifestyle, makes it a compelling choice for NRIs looking for premium
real estate investments for self-use as well as investment.

Demand For 3BHK Units Has Outpaced Demand

for 1 And 2BHK Units
The demand for 3BHK units has surged, surpassing the demand for 1 and 2BHK
units. This trend reflects a growing preference for spacious and versatile living
spaces, possibly driven by evolving lifestyle needs, such as the need for dedicated
home offices, guest rooms, or additional living areas.

26% Of NRI Buyers Are Looking for A Property with A

Budget Exceeding `1 crore
Intriguingly, 26% of NRI buyers are now actively seeking properties with budgets
exceeding `1 crore. This data suggests that a considerable portion of NRI investors
is increasingly inclined towards high-value investments, signifying a greater focus
on premium and luxury real estate options.

82% Of NRI Buyers Have Indicated Lack of Information and

Transparency as Major Challenges While Buying a
Property in India
The fact that 82% of NRI buyers have identified lack of information and
transparency as major challenges when navigating the Indian real estate market
highlights the pressing need for improved accessibility and clarity in the property
purchase process. They are often left with inadequate access to comprehensive
property data, unclear regulations and lack of information on current prices.
Often, they have to depend on third parties to get all sorts of information that they
require. This added dependency does not always result in the best investment
decisions.
52% NRI Owners Have Said That They Want Property
Management Services
The fact that 52% of NRI property owners express a desire for property
management services underscores the growing demand for convenient and
professional solutions to oversee their real estate assets. Managing properties
from abroad can be a complex and challenging task, and NRI owners are
increasingly recognizing the value of enlisting property management services to
ensure their investments are well-maintained and financially optimized. These
services often include tasks like finding a tenant, property inspection, rent
collection, and administrative responsibilities, providing NRIs with peace of mind
and a hassle-free approach to managing their properties efficiently and
effortlessly.
NRI Profile
Which country are you currently residing in?

UK
CANADA GERMANY

FRANCE

USA
UAE
SINGAPORE

AUSTRALIA

Age group of NRI Buyers

Age 30-40 27%

Age 40-50 32%

Age 50-60 21%

Age 60+
20%
Profession of NRI Buyers

34%
IT/Technology
professional

32%
Other

12% 9%
Finance Entrepreneur/
professional Own business

9%
Medical
4% professional
Government service
NRI Sentiment Analysis
The NRI Real Estate Survey 2023 showcases interesting insights about NRIs’
sentiment in investing in Indian real estate. India is a great destination for
property investment right now, given high rental yields. However, the survey
indicates that over 60% of NRI buyers are looking to purchase property for self-use,
underlining their emotional connect, sense of security and lure of their homeland.
Depreciation of rupee and easy process of investment have contributed to this
spike in interest from the NRI community.

Are you looking to buy a property in India?

45%
Yes

55%
No

Are you looking to buy for self-use or investment?

60%
Self-use

40%
Investment
43% of NRIs looking to purchase for their family living in India underline a broader
shift in the real estate landscape, with the emergence of senior living projects
gaining prominence as they offer comprehensive care, comfort, and a sense of
community for their parents and grandparents. This dual focus on family security
and well-being underlines the multifaceted nature of NRIs’ real estate
investments, where each choice is driven not just by economic prudence but by
emotional reasons as well.

Are you looking to buy for self or family?

57%
Self

43%
Family
living in india
Insights from NRI Real Estate Survey
Bangalore and Mumbai Emerge as Top Choices for NRIs
A significant 29% of respondents have crowned Bangalore as their top pick for real
estate investment, closely followed by Mumbai, which garnered the preference of
24% of NRI buyers.

Percentage of NRIs Looking

City
to Buy in Each City

Bangalore 29%

Mumbai 24%

Hyderabad 18%

Chennai 14%

Pune 11%

Delhi NCR 4%

Gated vs Non-Gated Societies

The survey by NoBroker reveals a notable trend, with over 54% of respondents
expressing a strong inclination to invest in gated communities, emphasizing the
allure of safety, convenience, amenities, and community living.

Prior to the pandemic, the holiday home segment saw NRIs making up less than
11% of total sales. Over the past one year, the charm of holiday homes has also
lured property buyers. With comprehensive property management services
gaining ground, the demand for holiday home will continue to be on the rise.

54% 19%
Gated Holiday home

11% 16%
Non-gated Plot
NRI Patterns and Preferences
Ticket Size
The recent survey by NoBroker reveals that a whopping 40% of NRIs are aligning
their real estate aspirations with budgets exceeding 1 crore. This upward trajectory
in NRI budgets further underscores their role as significant stakeholders in India’s
evolving real estate sector. Depreciating rupee and preference for projects with
more amenities have expanded the ticket size.

18%
40-60 lakhs

20%
60-80 lakhs
22%
80 lakhs to 1 crore

40%
1 crore and above

Increasing Preference for Spacious Living

In a very surprising turn of events, demand for 3BHK units has clearly outpaced
demand for 2BHK units, with a striking 29% willing to opt for the former. What’s
equally remarkable is that over 17% of the respondents are expressing a desire for
even larger accommodations, specifically 4BHK and more extensive properties.
This segment of the NRI community values not only spaciousness but also the
versatility and potential for multifunctional use that larger properties offer.

18% 29%
1 BHK 3 BHK

17%
Bigger
than 4 BHK

25% 11%
4 BHK
2 BHK
Digital Shift:
Increase in NRIs Seeking Property Investments
via Real Estate Websites
The digital landscape is playing a significant role in shaping the investment
choices of NRIs. A striking 46% of those surveyed are turning in to real estate
websites for searching property for investment in India.

Remote Property 360 Degree Virtual Tour Relationship Manager

Search of Property

Builder’s Credibility Reigns Supreme

Over 55% of respondents feel that credibility of builder is important while
choosing a property for investment. Other factors that help NRIs in decision
making include- Credibility of builder, Potential of price appreciation, price,
locality and amenities.

Which factors matter most while buying a property?

Factors Percentage of NRIs

Credibility of builder 55%

Price 48%

Locality 47%

Potential of price appreciation 34%

Amenities 31%
Challenges Faced by NRI Property Owners
For NRIs, managing rental properties remotely can be a complex and challenging
task. Many rely on their local family members or third parties. This process is time
consuming and adds a lot of dependencies on third parties. As per NoBroker NRI
survey, 63% NRI respondents have said that property management is a huge
challenge.

Out of this 52% of respondents have expressed a clear need for professional
assistance in property management.

Do you need property management services?

52%
Yes

48%
No

Among the reasons stated for need of property management services the
convenience offered by these platforms topped the list. This data illustrates the
pivotal role that professional property management plays in alleviating the
burden of responsibilities of NRI property owners.

Property Management
Easy rent collection

Easy property
Hassle-free tenant management
finding process
Navigating the Property Search Challenges
As per the survey conducted by NoBroker, it is evident that obtaining accurate
information and sound investment advice is a significant challenge for a vast
majority, with over 82% of respondents acknowledging this concern.

The predominant challenge faced by NRI buyers is the dearth of sufficient

information about a project or property. This highlights the need for greater
transparency and comprehensive data when it comes to real estate listings and
developments. Although, a lot of information about builders, projects and
localities is available online, property purchase is huge decision and can be
overwhelming especially when done remotely.

The survey revealed that 42% of respondents expressed concerns related to trust
issues with brokers, emphasizing the importance of establishing a trustworthy
and reliable relationship between property seekers and property owners.

Challenges Percentage of NRIs

Lack of sufficient information about a

55%
project/property

Trust issues with brokers 42%

Trust issues with real estate portals 35%

Lack of information on current prices 36%

Nowadays, many real estate platforms assign a dedicated relationship manager to

help with the process. Their scope of service includes shortlisting properties as per
criteria, legal verification, price negotiation, legal paperwork, everything till the
transaction is complete.
Outlook
Over the past year, there has been a remarkable increase in the interest and
involvement of Non-Resident Indians (NRIs) in the Indian real estate market. This
surge can be attributed to several factors, such as the emotional connection that
many NRIs have with their home country and the investment opportunities
within the Indian real estate market.

Technology has really made it simpler to buy, sell, manage properties remotely
whether it is for emotional connect or for investment purpose. It has made the
access to information easier. Increased rental yields spell continuation of good
times for the Indian real estate sector. Technology has not only removed
information asymmetry but also made access to information on locality, projects,
and builders easier.

The advent of technology means less reliance on third parties for purchase, sell or
management of properties and this has boosted the NRI community’s confidence
in the country’s housing sector. There is greater autonomy in decision making
which was earlier subject to views and opinions of relatives, friends, or brokers. The
process is free from personal biases and at the same time it is more transparent.

More NRIs purchasing houses in India imply an increased demand for

Comprehensive Property Management Services which include services such as
finding tenant, inspection of property and rent collection. 56% of NRI customers
said they preferred a dedicated Relationship Manager to ensure that their
property is well taken care of. It takes away the hassle of finding new tenants,
ensuring timely collection of rent, and if a tenant leaves without notice, the rent
cycle is not disrupted. So, the entire management of property is done in the most
seamless way possible.

It’s important to emphasize that real estate has consistently proven to be one of
the best investment vehicles for achieving attractive returns. The growth in NRI
residential sales, which has risen from 11% to 15%, in a matter of months,
underscores this point. This demand is slated to reach 20% by the end of 2025.