The investments from the Non-Resident Indians (NRIs) have surged in the FY 2021 to $13.3 billion from the earlier estimate of $13.1 billion according to a report published by 360 Realtors. The same report states that the investment volume has climbed upwards by 6.4% compared to the previous financial year despite the pandemic and the buyers’ sentiments plummeting downwards.

In the first quarter of 2021, the numbers dropped by 35% owing to the worldwide lockdown that created a panic in the sector. The experts opine that this had happened due to the sharp drop in the economic activity due to the lockdown imposed due to the pandemic. In the second quarter, however, the various measures to boost the sector coupled with the marketing stunts and price reduction started attracting the NRI community. The infusion of liquidity by the government of India also helped the realtors to speed up the construction process and boost sales through price adjustment. These measures did not only surge the buyers’ sentiments in India but they also improved the sentiments of Non-resident Indians.

According to the report published by 360 Realtors, numerous factors played a role in surging the sentiments of the NRIs and boosting the sales of properties. Along with factors like a drop in the value of the rupee other factors like price cut, attractive payment plans from the developers also played a key role in the resurgence of the sales from the NRIs. The forecasts suggest that the investment will rise by 12% in FY2022 and would touch $14.9 billion.

Factors responsible for the upsurge 

As soon as the lockdown was declared there was a sharp decline in the sales from the NRI community in the first quarter of the last fiscal as the estimates say that the investment from the expatriates fell by 35% in comparison to the same quarter last year. This made the developers introduce attractive payment plans and also took to the digital platforms for sales to build resilience. The government’s initiative to reduce the home loan rates added more fervour to the quick recovery which gradually set the stage for the resurgence of sales. Added to that the lowering of the value of the rupee added fuel to the fire for which the NRI investments surged.

By the end of the second quarter of FY 2021, the NRI investments grew by 18% on a year-on-year basis and in the subsequent quarters, the investments from NRIs went on increasing to 24% and 22% respectively on a comparison scale of an annual basis. The experts add that reduction in the stamp duty rates in states like Karnataka and Maharashtra also added to the increased spree of buying sentiments surging the sales higher in cities like Mumbai and Bangalore.

 

NRI INVESTMENTS IN INDIAN REAL ESTATE SURGE IN FY 2021

The momentum would continue to rise 

 

The estimates say that the NRI investments in FY 14 were at $6 billion and there was a steady increase year-on-year which helped the figure to reach $13.3 billion in the financial year 2021 growing at a compound annual growth rate of 12%. The reports and estimated forecasts based on regression analysis say that it would reach 14.9 billion in the financial year 2022. Investments from the non-resident Indians would continue to increase in the ensuing quarters and in this, the increased emphasis and use of digital means would be the major game-changer. In this crisis, both the brokers and the developers of the industry have realized that building digitally and reaching the customers and stakeholders through digital means by increasing digital assets would accentuate their businesses by the enhancement of the value chain. 

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