In Indian residential real estate, NRIs are one among the most important buyers and investors. They have always had a lot of influence on the Indian housing market, but never more so than in the last three years.
According to a forecast issued by international property consultants JLL, the Indian real estate market will grow at 12% in FY22 - from $13 billion to $15 billion. The consultants further stated that NRI investors eyeing on property in India must act quickly if they want to capitalize on the opportunity to turn their funds into profitable investments.
This article will briefly explore the property buying guide for NRIs and the types of residential properties they are most likely to buy in 2023.
Property Buying Guide for NRIs
1. Documents Required for an NRI to Buy Property in India
In order to purchase property, you must obtain and submit a few documents, so make sure you have all the required documents before you start the process.
The important documents NRIs need to verify include:
Title Deed (in the seller's name)
Older Title Deeds (if any)
Updated Encumbrance Certificate
Tax Receipts (building tax & land tax)
NOC from the society*
NOC from local bodies*
* only applicable in specific cases
Also, checking past property documents (at least for the last 15-20 years) with the help of an expert will help you avoid future problems when buying a property
2. Documents Needed for Registration
Some states have specific paperwork; therefore, it's always better to hire a qualified property lawyer. Also, the property deeds must be checked thoroughly before making any decisions.
Now, let's look at the types of properties that NRIs can buy in 2023
Homes NRIs Will Buy in 2023
1. Tech-Enabled Properties
The pandemic shed light on enabling technologies, including smart home features. In the past, people mostly evaluated smart home features based on comfort. Today they are also assessed on the scales of efficiency and safety. Smart homes require less human assistance and support to run efficiently. This is still considered important at a time when the memory of COVID-19 is still fresh in the minds of people.
2. Larger Living Spaces for Work and Life
Many NRIs who return from abroad have remote work arrangements with their employers and need home office spaces. People buying homes for investment already know that India has accepted remote and hybrid work. The tenants and potential buyers will expect a home with such facilities where they can incorporate all their needs.
3. Easy Accessibility to Daily Conveniences
After Covid-19, the desirability of a neighbourhood is directly proportional to the number of accessible conveniences. This is because many NRIs have benefited from a proactive local government that ensured a regular supply of groceries and daily staples to their homes, depending on where they live in a foreign country.
Therefore, NRIs will place a high value on properties close to essential amenities and services because it is convenient and provides better quality of life. This can save time and effort when going to grocery stores, medical clinics, banks, and public transportation. Also, properties in such areas tend to have a higher demand which in turn gives higher rental potential, as they are more attractive to tenants looking for convenience.
4. Amenities and Facilities for Health
The space NRIs have grown accustomed to in other countries cannot be taken for granted in this crowded country. In India, space is the ultimate luxury, not only within our homes but also around them. The possibility of going for a nice walk, jogging, or pursuing a sport in a spacious, uncrowded surrounding is a must-have for NRIs. Every NRI's wish list includes green open spaces and well-maintained roads with sidewalks.
Previously, a gymnasium on the premises was optional. Today, working out in an unsecured public gym is now highly unlikely, just a few years back when public gyms were closed because of the pandemic.
5. Children's Safety
NRIs prioritise the safety of their children, regardless of age or current educational level. Therefore, they will place high importance on properties in areas with low crime rates, good safety records, and proximity to emergency services. Also, properties with child-friendly features like round edges, slip-resistant surfaces, railings on stairs and balconies and 24-hour security will be in high demand among NRIs. They would prefer properties that are close to the educational institutions or training centres. As parents they would make sure that they have safe commuting facilities for their children too.
6. A Strong Preference for Integrated Townships
The qualities NRI homebuyers and investors look for in Indian housing options, integrated townships have a clear advantage. They are the closest thing the Indian residential real estate experience can offer compared to a Western city's orderly, enabled, and dependable lifestyle.
Integrated townships offer a generous slice of such a life. Both NRIs and resident Indians are making a conscious decision to prioritise the quality of life over all other factors.
Even after three years of uncertainties, there can be no room for compromise. That's the one thing that remained constant for NRI homebuyers: they expect the best.
PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.