Young NRI population form major chunk of Indian property investment Hyderabad and Chennai take significant hike in popularity graph
November 16, 2015; Dubai, UAE: Latest statistics endorse the fact that young Indian residents of UAE are showing active interest in investing in property in their home country. As per a study published by Sumansa Exhibitions, event organisers of the popular realty fair, Indian Property Show to be held in Dubai from 1st -3rd Dec at DWTC, NRIs in UAE between 18 and 35 years form a significant 43 percent of those investing in Indian real-estate. The research also reveals UAE resident Indians’ increasing interest in cities like Hyderabad and Chennai, which have taken significant hike in the latest popularity graph.
In 2014, Hyderabad stood the 8thmost popular city– with 6 percent of NRIs voting for it – but climbed to 5th position in 2015, with a three percent increase in the polls. The top three slots still remain with Mumbai, Bangalore and Pune respectively. Chennai, on the other hand, jumped one place from fifth to fourth position.
Speaking on the younger generation’s interest in property investment, Sunil Jaiswal, President Sumansa Exhibitions, said: “The trend has been strengthening in the past one decade. While earlier, we would see older people planning and saving to buy property, today more young people want to solidify their savings in the real-estate market. They also have very good understanding of the financial gains associated with realty and many more options of home leasing and loans than their parents did. Moreover, the combination of a two-income family and more affordable homes has been a significant factor. There is also the fact that investing in real-estate gives the youth a sense of achievement, security and economic well-being”.
With the market focus on more budget-friendly homes, Hyderabad seems to fit in the slot quite comfortably, offering affordable property and stability within its realty segment. With more residential localities evolving around Madhapur, Gachibowli and Kondapur – the IT corridor – and huge investments in the city’s infrastructure, experts even predict price appreciation in short term, which could be one of the reasons why more investors are looking towards Hyderabad.
A trend noted among the educated NRIs is that up to 40 per cent of their disposable income is set aside as savings or for the purpose of investments back home in India.
Key findings of the Survey:
8,632 NRIs across UAE participated in the survey which 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.