In a survey conducted amongst 15,000 expatriate Indians in UAE by Sumansa Exhibitions, the organizers 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 percent people were interested in buying a home in the range of 76 lakhs – 1 crore (AED 406,220 to AED 534,500) this year 16% 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 – 2 crores (approx AED534,500 –AED 1 million) observed an 80% increase from 10 % last year to 18% 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.
“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 demonetization 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 and 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.
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 Rs 2 crore (AED 1 million approx) in Mumbai, whereas in Gurgaon and Noida you could get such a unit for Rs 1.5 crore ( Approx AED 840,000) and Rs 1 crore (AED 534,500) respectively. The starting price of luxury residential property in Bengaluru, Pune and Hyderabad was close to Rs 75 lakh (AED 400,875). However, in cities like Ahmedabad and Kolkata, you could get such units for as little as Rs 65 lakh (AED 347,425) and Rs 60 lakh (AED 320,700) respectively.
Around 47,000 residential units were sold across the top nine cities of India in FY16. These accounted for 17 per cent of total sales. The Bengaluru city emerged as the largest contributor to luxury sales in the country, with a share of 29 per cent in total during the year. In Mumbai, localities like Prabhadevi, Bandra, Lower Parel and Kurla Complex witnessed the highest activity. In Bengaluru, Whitefield and North Bengaluru were the most preferred destinations for luxury projects. In Gurgaon, the most sought-after destinations in this segment were Golf Course Road, New Gurgaon and Sohna Road. Recently, Hyderabad showed a great inclination towards the luxury segment, mainly on account of political stability and infrastructure development. In Chennai, the central areas we buzzing with activity in the luxury residential segment.