NRIs from Gulf look to invest in Holiday Homes in India
Dr. Sachin Chopda – Managing Director, Pushpam Group briefing the visitors on the benefits of investing in holiday homes in India during the recently concluded India Property Show in Dubai
Look to capitalize on high returns and vacation paradise appeal
Indian real estate sees 35% YoY rise in demand from NRI customers
The Indian real estate sector is booming, given the government’s thrust towards infrastructure development, which has resulted in improved connectivity and ease of travel within cities and across the country. This improved connectivity has opened new vistas for people to invest in evolving assets like holiday / second homes, which provide regular and attractive returns in the long term. Not to miss this attractive opportunity, NRIs from the Gulf region are showing a growing interest in investing in these holiday homes, anticipating potential future capital appreciation offered by these assets for investors.
The NRI segment of buyers is expanding, with NRI sales doubling in the last two years. NRIs are attracted to the affordable property prices in India compared to other countries. According to a report by a realty firm, NRIs invested $13.1 billion in the Indian real estate market in FY21, and the inflow is likely to have grown 12% to reach $14.9 billion in FY22. In FY21, the average ticket size of purchases from UAE-based NRIs has grown by 11.5% to reach $97,000.
Speaking on the sidelines of the recently concluded India Property Show 2023 held at Dubai, Dr. Sachin Chopda, Managing Director, Pushpam Group, said, “We are absolutely excited at the response from NRIs in Dubai towards the holiday home concept and, more importantly towards our holiday home property ‘Balibaug’ located at Alibaug near Mumbai.”
“The holiday home concept has made huge inroads into the property landscape across the country. The high aspiration level among the burgeoning middle class has given this asset class a major push. People now are more health conscious and believe in taking short weekend breaks that relieves the monotony of a stressful city life. These short breaks rejuvenate body and mind and also serve a dual purpose of holidaying as well as earning regular income whilst creating an asset that will appreciate over the coming years.”
Balibaug, located in the scenic coastal town of Alibaug, often referred to as ‘Mini Goa,’ offers a convenient escape from Mumbai, just a two to three-hour drive away and ninety minutes from the upcoming Navi Mumbai International Airport. Inspired by Bali’s architecture, Balibaug features 2 & 3 BHK luxury villas with private pools, gardens, open showers, terrace Jacuzzis, and international standard interiors. The resort boasts 20+ amenities, including three restaurants, a spa, a banquet hall, a party lawn, a gym, and more. Alibaug, a popular weekend getaway for Mumbaikars, is easily accessible by road and sea, and the upcoming Mumbai Trans Harbour Link (MTHL) will further reduce travel time, bringing it even closer to Mumbai.
As per NoBroker.com, Indian residential real estate has witnessed a 35% growth year-on-year through the investment from NRIs. This burgeoning trend is especially evident in their preference for gated communities, which offer a host of amenities. Gated communities are a hot favourite amongst not only NRIs but the affluent Indian residents as well.
There are a number of factors that have contributed to making NRIs look at investing in the Indian real estate sector. These include the favourable exchange rates between Gulf currencies and the Indian Rupee, which makes it attractive for NRIs to invest here. Also, most NRIs invest here to earn on rental income given growing demand in the market. It is also a good opportunity for them to diversify their investment portfolio.
There is a growing interest among NRIs and HNIs to invest in luxury second homes as they can rent out these properties and generate a steady rental income, since they live abroad. Generally, such properties are located at prime tourist destinations and offer high capital appreciation over a period of time or at the time of selling it. Owning luxury second home properties enhances social status and prestige within the community and among the Indian Diaspora. Most of such luxury second homes are located in coastal areas or hilly terrain but yet close to metro cities. These locations have excellent connectivity to the city with good social infrastructure in place. For instance, Karjat and Alibaug near Mumbai are favorite weekend holiday getaways and a second home destination for people living in Mumbai and Pune. This has attracted a number of such properties to develop increasing interest among the NRI and HNI community.
A study conducted by the NRI-focused fintech platform SBNRI revealed that approximately 53% of surveyed NRI investors asserted that India delivers superior investment returns compared to other countries where they have invested.
The Indian government has also introduced several initiatives to encourage NRI investments, such as allowing repatriation of sale proceeds, tax benefits, and simplified property acquisition processes. Also, NRIs have an emotional connect with their home country and these investments further build and maintain these strong ties with their country and family back home. Finally, Indian real estate becomes a crucial component of retirement planning for NRIs, offering a sense of security and a potential residence for their post-retirement years in their homeland.
The recently concluded Gulf News India Property Show brought together over 40 developers from India’s residential and commercial real estate sector, financial institutions, along with potential buyers. The two-day event offered families a chance to engage with India’s top developers, explore new projects, discuss their preferences and budget to take the next step forward. Inspired by the declining value of the Indian rupee and confident in the consistent growth of investment and rental returns, NRI investors are increasingly considering real estate as a secure avenue for deploying their assets.
If you have any objection to this press release content, kindly contact pr.error.rectification[at]gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.
Comments are closed.