NRIs Boost India’s Property Market as Developers Cater to Overseas Investors
Every year, non-resident Indians (NRIs) living in the GCC contribute significantly to India’s property sector. With alternative investment hubs emerging across the world, developers are stepping up their efforts to attract and retain these overseas buyers.
For most NRIs, buying property in India is more than an investment—it is a future life security. And with recent regulatory reforms, investor confidence is growing.
“The safeguard, promise of improved efficiency, and transparency are attracting NRIs like never before,” says Ashwinder Raj Singh, CEO of ANAROCK Property Consultants.
Growing Sales Across Key Markets
Sales trends reflect this optimism. According to Singh, markets in southern India such as Kochi and Coimbatore, western cities like Ahmedabad, Vadodara, Pune, and Nashik, and northern hubs including Noida and Ghaziabad are seeing increased demand.
“These cities not only offer properties in affordable and premium luxury segments, but also benefit from government regulations such as RERA, which has bolstered NRI trust in Indian real estate,” he explains.
Many NRIs also see buying property as part of their long-term plan to retire in India, making investment in the home country even more appealing. Singh adds, “Even after 10 years of working in the GCC, 95% of NRIs return empty-handed. Only 10% bring their families. Investing in India just makes sense.”
The slowdown in GCC economies due to falling oil prices has also made Indian property more attractive.
Economic and Policy Tailwinds
According to Suraj Poon, senior property consultant at SPF Realty, economic growth in the GCC is expected to improve, with the U.A.E. projected to grow 2.5% in 2017, up from 2.3% in 2016, thanks to its diversified economy.
“While the GCC recovers, NRIs have a perfect opportunity to invest back home. The Indian government has taken measures to reform and regulate the real estate sector. The Union Budget 2017 emphasized clear and transparent guidelines to attract further NRI investments,” Poon adds.
Post-demonetization, surplus liquidity in India’s banking system has reduced borrowing costs, further boosting investment.
Developers are incentivizing NRIs with schemes such as extended payment plans, waivers on stamp duty, registration charges, VAT, service tax, and floor-rise premiums. A particularly popular offering is purchase price assurance, compensating buyers if property prices fall within three to six months.
Investment Patterns and Preferences
Despite strong interest, NRIs face challenges: lack of transparency, delays in project completion, and cumbersome follow-ups have historically discouraged investment.
“RERA has been a gamechanger, evoking confidence among NRIs,” says R. Srividya, GM, Indian Property Show, Sumansa Exhibitions.
“As of June 2017, 52% showed interest in apartments, 26% in villas, 13% in land, and 9% in commercial spaces.”
The NRI segment accounts for approximately 11% of total luxury real estate sales. Key drivers include a robust economy, easy access to capital, higher disposable incomes, and aspirations for an improved quality of life.
“NRIs are increasingly buying not just as investors, but also as end-users, planning to return and start businesses in India. Affordable and premium housing is now as popular as luxury projects,” Singh notes.
Developers Tailoring Offerings
Indian developers are responding to NRI preferences for international standards and lifestyles, employing world-class designs, layouts, and amenities comparable to those in Singapore, London, or New York.
“Buyers now have a wide range of options—from compact 1–2BHK apartments to 4BHK duplexes and full-floor luxury units, covering semi-luxury to uber-luxury segments,” says Devang Varma, Director, Omkar Realtors & Developers.
Virtual tours, augmented reality, and on-ground presence in GCC countries make investment easier, bridging the geographical gap.
For Adani Realty, NRIs are central to marketing strategies. Dharmesh Shah, VP – Head of Residential Sales & Marketing, says:
“We target NRIs through trade shows, digital marketing, and community-specific outreach. With initiatives like Smart Cities, RERA, and Housing for All by 2022, NRIs can invest across metro, tier-two, and tier-three cities.”
However, Shah emphasizes that NRI decisions are multifactorial, influenced by expected returns, long-term plans, currency fluctuations, and potential for personal use.
