MUMBAI/BENGALURU: In a survey conducted amongst 15,000 expatriate Indians in UAE by Sumansa Exhibitions, the organisers of the upcoming Indian Property Show, it was revealed that the appetite for premium and luxury homes amongst the UAE NRIs has risen considerably.
Whereas last year only 11 per cent people were interested in buying a home in the range of 76 lakhs to 1 crore. This year 16 per cent people are looking for homes in this budget range.
Additionally, the buyer’s interest in the higher category of homes in the budget range of 1 crore to 2 crores, observed an 80 per cent increase from 10 per cent last year to 18 per cent wanting to purchase this year.
The survey also uncovered a number of other interesting trends related to NRI investments into their home country. The survey was conducted to understand the reason of buying property in India, preferred cities for investments, type of property, time frame, budget and finances planned, etc.
According to the findings of the study, Mumbai, Chennai, Bengaluru, Pune and Hyderabad emerged as top 5 preferred cities for NRI investments from UAE, whereas Delhi NCR, Cochin, Ahmedabad, Goa and Coimbatore joined the list too, in that order.
Real estate sector
“Perhaps we can attribute the boost of interest in the luxury segment to the fall in Indian rupee and stronger government regulations such as the RERA bill. Moreover, the recent demonetisation move by the Indian Government will also immensely benefit the real estate sector in creating a stronger, healthier and sustainable growth”, said R. Srividya, General Manager- Corporate Sales & Brand Engagement, Indian Property Show, Sumansa Exhibitions.
The Indian Property Show will be held in Dubai from Dec 8th-10th, 2016 at Dubai World Trade Centre, Hall 2 and will feature budget to luxury properties from across India. Top Indian developers will be presenting thousands of properties while the educative and informative seminars during the show will guide the buyers on the dos and don’ts of investments.
Some important findings of the survey included: Apartments remained a favourite choice for investment at 48.64 per cent followed by villas (27.86 per cent), commercial (10 per cent) and land (16.32 per cent). As far as the reason for purchase is concerned: a huge majority of 57 per cent wanted to buy for their own use, while 23 per cent as first investment and another 20 per cent as an additional investment.
38 per cent of NRIs interested in buying property in India earned Dhs20,000 and above. A 100 per cent rise in NRI above 50 years looking to invest in India. From 11 per cent last year to 22 per cent this year.
45 per cent climb in the 76 lakhs to 1 crore (Dhs406,220 to Dhs534,500) budget range from 11 per cent to 16 per cent buyers willing to purchase in this range.
A massive 80 per cent increase in buyers interested in luxury segment of 1-2 crores (Dhs534,000 - 1 million) and above.
In terms of time frame for buying properties in India: 63 per cent were interested in buying within next 6 months, compared to 61 per cent last year.
The ticket size of the luxury residential property depends on location and varies from city to city, the price of luxury residential property FY16 started from Rs2 crore (Dhs1 million approx) in Mumbai, whereas in Gurgaon and Noida you could get such a unit for Rs1.5 crore (Approx Dhs840,000) and Rs1 crore (Dhs534,500) respectively.
The starting price of luxury residential property in Bengaluru, Pune and Hyderabad was close to Rs75 lakh (Dhs400,875). However, in cities like Ahmedabad and Kolkata, you could get such units for as little as Rs65 lakh (Dhs347,425) and Rs60 lakh (Dhs320,700) respectively.