Investment by non-resident Indians (NRIs) in India has revolutionized the Indian real estate industry over the last few years. Today, these investments are shaping the industry for the future and serving as a unifying factor for growth in the short and long run.
In 2024, India’s real estate market is experiencing a significant surge in interest from foreign investors. The nation’s burgeoning economy, coupled with policy reforms and infrastructural development, has positioned India as a lucrative destination for global real estate investment. Several key factors contribute to the growing appeal of India’s real estate sector for international investors.
The household sector plays a major role in the Indian economy by serving as a primary source of financial resources through savings, contributing a substantial 70% to the total gross domestic savings.
At least 35% of holiday home buyers mentioned Goa as their preferred destination, highlighting the enduring appeal of Goa’s lifestyle among India’s wealthy.
Retail investors, particularly the younger demographic, now have various avenues to invest in real estate without depleting their financial resources, enabling them to earn passive income at an early stage.
The real estate sector in India has experienced remarkable growth in 2023 and industry experts anticipate the homebuying sentiment witnessed in 2023 to persist in 2024 also.
The residential sector exhibits substantial growth potential, underscored by sustained demand over the past few years, complemented by consistently stable interest rates and robust GDP expansion. Notably, there is a pronounced demand for mid- and high-priced residential properties.
Driven by economic stability, policy reforms, and changing consumer dynamics, India’s real estate sector has registered strong growth with a massive uptick in demand in 2023.
The already high demand for second homes in Goa is growing even more. Especially in the luxury segment the demand for homes ranging from Rs 1 crore to Rs 3 crore price band has been on the rise.
The real estate boom in India seems to be a sweet spot for NRI investments. More NRIs are purchasing houses in India. The growth in NRI residential sales, which has risen from 11% to 15%, in a matter of months, underscores this point.