India's IT hub, Bengaluru, has emerged as a top investment destination for NRIs in the residential real estate sector. Industry experts predict that 2023 will be a significant year for NRI investments due to several factors, including infrastructure projects, the emergence of new IT corridors, a peaceful and law-abiding atmosphere in Bengaluru, and its cosmopolitan outlook.
NRIs from Asian regions, including Singapore and the Middle East, are making substantial investments, driven by a desire to return to India and settle down. According to trade experts, Bengaluru, Hyderabad, and Pune are the preferred destinations for real estate investments.
BCD Group MD Angad Bedi highlighted the favorable investment climate, with expected NRI investments reaching an impressive $80 billion by the end of the year, up from $65 billion in the previous year. India's steady economic growth, government initiatives to facilitate NRI investments, and an appreciating rupee have made Indian assets more appealing to NRIs.
Cornerstone Group CEO Captain K. Srinivas pointed out that India's real GDP growth is on the rise, reaching 6.1% as of March 2023, and is projected to reach 6.5% by FY24. This economic resilience encourages NRIs to invest in India's real estate sector, particularly in Bengaluru.
NRIs are showing interest in various asset classes, including luxury residential and commercial real estate. The launch of India's maiden retail REIT 'Nexus Select Trust' and the rising demand for urbanization and real estate across key Indian markets are attracting NRI investors.
Property First founder and MD Bhavesh Kothari emphasized that India's robust economic conditions are creating favorable conditions for NRIs to invest in real estate, benefiting from land appreciation value and envisioning a promising future. Bengaluru's infrastructural growth, the emergence of IT corridors, and investments in co-working spaces and Grade A office spaces further enhance its appeal.
Industry experts anticipate that the surge in NRI investments in residential real estate will drive 2023 investments to an estimated $25 billion, up from $20 billion in 2022. This trend is driven by increasing housing demand, rising disposable incomes among NRIs, and government-led infrastructure development efforts.
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