India's real estate market is poised for growth, with an expected compound annual growth rate of 9.2 per cent from 2023 to 2028.
A recent survey of non-resident Indians (NRIs) found that 52 per cent of respondents are considering investing in commercial real estate (CRE) in India to diversify their portfolio. The ‘The Neo-Realty Survey’ by MYRE Capital also highlighted that India’s real estate market is poised for growth, with an expected compound annual growth rate (CAGR) of 9.2 per cent from 2023 to 2028. Noida and Greater Noida regions are among the beneficiaries of NCR.
According to the survey, 18 per cent of NRIs prefer investing in the commercial sector over the residential sector, with 9 per cent preferring residential. The primary motivation for investing in CRE is the potential for higher returns, with 34 per cent of NRIs citing this as a critical factor. Additionally, almost 48 per cent of NRIs find investing in CRE highly convenient, with the ability to identify properties and a straightforward investing process.
He said that as a result, NRIs, even before actually setting foot in the country, have a fair idea of the properties they are interested in. Digital technology has considerably reduced the need for physical visits by NRIs, thus saving them time, money, and hassles from hopping from one property to another.
Salil Kumar, director (marketing and business management) of CRC Group, said, "Noida has emerged as a prime destination for commercial real estate investments. It promises great returns on investments, as lately many sustainable A+ grade buildings and projects have been launched in the commercial RE (real estate) segment. Fractional ownership has been preferred by the NRI population as it is economical for them because they come only for a few months in their native country."
The survey also found that 18 per cent of NRIs believe that property management services, such as finding tenants and managing maintenance, are the main benefits of investing in commercial real estate over residential.
The top cities for NRI investment are Bengaluru, Mumbai, and Pune, followed by NCR. However, interest in regional hotspots like Ahmedabad, Lucknow, Chandigarh, Kochi, and Indore has also increased recently.