Resumption of flight services drives expat demand for Indian real estate

The preference of NRI buyers for selecting residential properties in their home country has also seen a change, with access to quality healthcare facilities becoming a major factor in their decision-making.

“Expat Indian buyers from the GCC region, who could not visit project sites in India because of the flight restrictions earlier, are now travelling, or have planned their travel, to finalise their property purchases,” Shajai Jacob, chief executive officer – GCC, Anarock Property Consultants, told Arabian Business.

“The demand for Indian real estate products has been steady over the last two quarters. However, the recent resumption of flights has enabled buyers to visit their short-listed projects without the uncertainty of getting stuck in India,” added Jacob, who is also the managing director and country head of ApnaComplex, a society and apartment management technology platform acquired by Anarock recently.

Jacob said Anarock has also been seeing a spurt in enquiries from expat Indian buyers from the region even during the period of travel restrictions, as the July-September quarter is expected to witness several new launches across markets in India.

“Both residential and commercial segments have seen sustained demand from NRI markets. The investor class is on the lookout for A Grade commercial spaces such as office, retail, food and beverage, with high income generating potential during construction and post-handover,” Jacob said.

The Anarock senior executive also said credibility and track record of the developer remains critical to the purchase decision. “Investors are willing to pay the premium charged by a reputed builder when compared to risking their money with a non-established developer.”

As for the residential real estate market, Jacob said sentiment was upbeat on the back of continued low interest rates, price and payment flexibilities offered by the developers and new launches lined up for the coming months in India.

Shajai Jacob, chief executive officer – GCC, Anarock Property Consultants.

“Buyers are increasingly moving towards products from listed developers in this segment also,” Jacob said.

Executives at real estate developers and consultancies in India confirmed the increased demand from NRI customers, especially from the Gulf region after the easing of travel restrictions.

“Metros such as Mumbai and Bangalore are seeing the greater demand for residential properties, while the National Capital Region (NCR) of Delhi is seeing an increased demand for commercial properties,” a senior executive at a property portal said.

A senior official with leading real estate firm DLF said the June-August and September-December period traditionally are the best quarters for the real estate market in India and the increasing demand from NRIs, especially from the Gulf region, will help the industry gain added momentum this year.

Jacob said new launches in the South Indian cities of Hyderabad and Chennai have driven enquiries for these markets too.

Metros such as Mumbai and Bangalore are seeing the greater demand for residential properties.

As for the price segment preference of NRI buyers, Jacob said this varied depending on locations.

“In Bangalore, we have seen the maximum demand in the mid-price segment – ranging from $54,000 to $108,000, whereas in Mumbai it is for the luxury segment, which falls in the price bracket of $202,000-$337,000,” he said.

Jacob added that the pandemic has resulted in certain changes in the preferences of NRI buyers when purchasing properties in India.

“Access to quality healthcare facilities has become important in the decision-making process. We are also seeing the increasing dominance of listed developers in terms of sales, new launches, and overall activities in the market. NRIs are also looking at recurring rental earning potential to add another source of income,” he said.