One of the leading real estate services company in India, ANAROCK Property Consultants in one of the surveys conducted in the first quarter of 2019 points out that there has been a major shift in the age demographic of home buyers. According to the report, the majority of Indians buying homes in the 90s were of age bracket 45-55 years, whereas in the 2000s it had dropped to include the age group of 35-45 years. Now in 2019, 36% of those looking to buy a house are still in the 35-45 age group as millennial’s are choosing the rent out option rather than buying homes.
Now, young Indian millennials may be averse to the idea of real estate but there is one section who is still betting big on the Indian real estate market and that is NRIs (Non-Resident Indians). Investments made by NRIs in the real estate sector stood at a mere six percent in the financial year 2014-15. In the current financial year, the figure has almost doubled to reach 11 percent. The total investment by NRIs in this sector is expected to be in range of USD 13.5 billion by March 2020. Investment are not only made in the Tier-1 metro cities but also Tier 2 & tier 3 cities like Bhubaneswar, Kochi, Jaipur, and many more.
The growing interest of NRIs in real estate can be due to several aspects, one being the situation of rupee. With a depreciated value of rupee, the NRI finds it more attractive to invest their forex earning in India. At the same time, developers have been clever to offer special discounts or freebies to make this sector more attractive to NRIs. Looking at the current real estate situation one can say that the NRIs are providing necessary breathing oxygen to this very ill sector.
