Bengaluru a top choice for NRI spend in realty: Report
BENGALURU: Bengaluru and Mumbai are the top choices for Non-Resident Indians (NRIs) to invest in real estate, according to a report on NRI Real Estate, 2023. As per data, NRI's contribution to the Indian real estate sector has witnessed steady growth over the past few years and is said to grow to 17 per cent of the overall primary sales in the country.
“With its cosmopolitan lifestyle, world-class educational institutions, and thriving startup ecosystem, the rental yield of Bengaluru has gone up substantially, making it a good investment destination,” stated the 15-page report by the company NoBroker.com on Tuesday.
Around 29 per cent of respondents crowned Bengaluru as their top choice for real estate investment, followed by Mumbai, which garnered the preference of 24 per cent of NRI buyers. The report is based on a survey conducted with over 12,000 customers.
The survey highlighted that over 54 per cent of respondents expressed a strong inclination to invest in gated communities, emphasising safety, convenience, amenities, and community living. In terms of property types, respondents opted for 3 BHK units, with 40 per cent opting for spaces with a budget exceeding Rs 1 crore, inclining towards high-value investments, focusing on premium and luxury real estate options.
Most of the NRIs (34 per cent) looking for investment in Indian real estate are from IT or technology-related backgrounds, followed by 12 per cent from the finance field and 9 per cent each from among entrepreneurs and the medical industry, the report elaborated.
Despite growing demand, NRIs face challenges such as managing rental properties, finding a tenant, property inspection, rent collection, and administrative responsibilities, lack of information. Fifty-two per cent of NRI owners said they wanted property management services.