NRIs eye luxury homes post-Covid; Bengaluru, Pune preferred: ANAROCK Survey

0
518
Photo by Huy Nguyen on Unsplash

In an interesting twist in the post-Covid-19 real estate landscape, NRIs are once again scouting for Indian luxury homes.

As per ANAROCK’s latest consumer survey, at least 73% NRIs now prefer properties priced between Rs 90 lakh to Rs 2.5 crore. In the pre-Covid survey (H2 2019), just 41% preferred properties within this price bracket.

The IT hubs of Bengaluru (24%) and Pune (19%) are seeing the highest NRI demand. Collectively, these two cities saw approx. 48,370 homes sold in 2020 – accounting for a 35% sales share among the top 7 cities.

“The COVID-19 pandemic has increased NRIs’ emotional association of long-term security with physical assets,” said Prashant Thakur, Director & Head – Research, ANAROCK Property Consultants.

“Luxury properties have emerged as a hot favourite with NRIs because of the depreciating rupee value translating into greater buying power, coupled with ongoing developer discounts and offers. A majority of NRIs is buying for end-use, not as investments.”

According to the survey, most of the polled NRIs seeking property in India are aged between 35-45 years of age. About 86% of the polled NRIs will only consider properties by branded developers who have the highest project completion capabilities, resulting in the lowest execution risk.

Regarding their outlook on residential property prices, at least 44% respondents felt that prices will remain stable in the short-term (i.e. 12 months), while 27% feel they will increase during the year. Over the long term (i.e. in 5 years), 92% NRI respondents think prices will increase.