More NRAs eager to buy bigger homes in the country, report says

• Demand for larger homes has seen a spurt in the post covid era.
  
• In fact, 77% of NRAs want to buy larger homes, while 23% want 4 BHK homes.
  
• The housing sector saw demand increase by 15-20% by NRI in the first nine months of 2022 compared to the corresponding period in 2021.

Many non-resident Indians (NRIs) want to return to their home countries, bearing in mind the ongoing economic situation caused by the war between Russia and Ukraine, and are therefore actively looking for housing in India.

“Despite the worst of past Covid-19, NRAs have clearly not forgotten the uncertainties associated with living in a foreign country during a major pandemic. Securing homes in India has been and remains a priority for Indians everywhere, ” said Prashant ThakurSenior Director & Head of Research, ANAROCK Group.

According to CII-ANAROCK Consumer Sentiment Survey, 77% of NRAs want to buy even larger homes, while 23% want 4 BHK homes and 54% want 3 BHK properties.

The survey received 55,000 responses from NRAs, of which 7% were currently based in the US, Canada, the Gulf, Europe and several Asian countries.

Demand for larger homes has seen a spurt in the post-Covid era. “While schools and offices are open again, the desire for additional living space remains unabated. Many of the major IT companies and IT-driven startups are now operating on a hybrid work model,” the report said.

Notably, more NRAs prefer to invest in Indian real estate over stocks, mutual funds, gold and fixed deposits. Another reason NRAs prefer larger homes is the favorable exchange rate.

The percentage of NRAs looking for 2 BHK properties has fallen from 40% in 2019 (pre-Covid) to 22% in 2022 (post-Covid).

“From ANAOCK Researchthe Jan-Sep 2022 period saw about 2.73 lakh houses sold in the top 7 cities,” Thakur said.

The property market has generally witnessed a gradual recovery after successive Covid-19 lockdowns. Demand continued to pick up during the holiday season, despite higher interest rates and sharp inflation.

Bengaluru remains one of the best choices

Bengaluru was one of the top three choices by NRAs to invest in the housing sector before, during and after the Covid pandemic. Apart from Bengaluru, Hyderabad and NCR are the top picks for the NRAs this year. At least 60% of respondents agreed to look for properties in Hyderabad, 20% looked at the NCR region and 18% preferred Bengaluru.

Last year, Bengaluru, Pune and Chennai were the top choice for most NRAs.

While 63% of respondents want premium properties priced between 90 lakhs to ₹1.5 crore, 59% of NRAs prefer luxury properties priced between ₹1.5 – 2.5 crore.

Total investment in Indian housing by NRAs has increased from 55% in the pre-Covid year (2019) to 71% this year. “On average, NRAs account for 10-15% of homes sold in any given quarter,” Thakur added.

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