- India's real estate market has become an attractive destination for foreign investors.
- Non-Resident Indians are purchasing second homes in India as an investment opportunity.
- In the past decade, there has been an increase in high-net-worth individuals investing in luxury Indian real estate.
The real estate sector in India has experienced remarkable growth since 2022, with Non-Resident Indians (NRIs) having played a significant role in this increased demand for luxury homes.
The Indian real estate industry was estimated to be worth $200bn in 2021 and is projected to reach $1tn by 2025, according to a report made by the National Real Estate Development Council (NAREDCO) and KPMG India. This expansion is projected to account for 13% of the nation's gross domestic product.
The demand for luxury homes and rising rental rates, alongside the weakening of the Indian rupee, are critical drivers behind the expansion of the Indian real estate market.
NAREDCO and KPMG India’s report indicates that the Indian real estate industry is exhibiting signs of robust growth, even as the global real estate market continues its recovery from stagnation.
The trend of NRIs and high-net-worth individuals (HNWIs) investing in luxury property in India has increased in the past decade. HNWIs interested in purchasing a second home from overseas will need to utilise a secure online money transfer system to do so.
Luxury homes can provide a high return on investment, as well as the potential to generate significant rental income, making them an attractive source of growth.
NRIs are taking advantage of government assistance and improved buying power to invest more heavily in luxury properties in India. In 2022, the Indian housing sector saw considerable investments from NRIs, especially in high-priced properties, due to the decrease in value of the national currency compared to the US dollar. This trend has continued into 2023.
It is thought that changing demographics, better quality properties and offerings from well-established Indian developers are some of the key reasons for the growing interest in Indian real estate.
A report from ANAROCK, an Indian property consultant firm, revealed a 33% surge in NRI investment in India's real estate sector in 2021 due to the government's favourable policies. The report suggested that Indians are dedicated to passing wealth down through generations and often aim to have an asset in their homeland, regardless of which country they live in.
The versatility and continued transformation of Indian developers has expanded the Indian luxury property market significantly.
It’s important that investors research the various money transfer methods available before transferring large sums of money overseas.
For HNWIs looking to buy or invest in luxury real estate abroad, use our online money transfer comparison tool to compare foreign exchange rates.
