6 Emerging Real Estate Destinations For NRIs

Non-Resident Indians (NRIs) have always been investing in real estate in India. This is expected to rise significantly this financial year.

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Non-Resident Indians (NRIs) have always been investing in real estate in India. This is expected to rise significantly this financial year. Over a week ago, Prime Minister Narendra Modi met prominent NRI investors in the United Arab Emirates (UAE) who briefed him about their investments in India. Modi urged them to invest more in India, especially in infrastructure projects.

While, NRI typically invest in cities such as Mumbai, Bengaluru, Pune, Chennai, Ahmedabad, Cochin, Hyderabad and Goa, we look at some of the emerging real estate destinations for NRIs.

Coimbatore (Tamil Nadu)

With many information technology (IT) companies building offices in the city, Coimbatore is emerging as a real estate destination for NRIs. Even though Coimbatore was a small town not long ago, it is one of the top outsourcing cities in the world. The city is next only to Chennai in attracting IT firms in Tamil Nadu. NRIs, who seek new cities to invest in because prices are stagnant in major Indian cities, are turning to Coimbatore. They prefer real estate in Coimbatore because it is more stable. As Kerala and Chennai are adjacent to Coimbatore, NRIs from these places invest in this city where infrastructure has been improving in the recent past. The city also has good hospitals, and is close to tourist locations such as Nilgiri Hills. The service, manufacturing and retail industries in Coimbatore are flourishing, too. Coimbatore has among the most-competitive business environment, among Indian cities.

At least five major Special Economic Zones (SEZs) are likely to come up in the city very soon. Many five-star hotels, too, have come up in the city. In August, The Confederation of Real Estate Developers’ Association of India held the sixth edition of their property expo, Fairpro in Coimbatore.

Bhiwadi (Rajasthan)

Bhiwadi is an emerging real estate market, where NRIs prefer to invest because there are many industrial complexes, SEZs in this city. In the past few years, Bhiwadi has seen many affordable-residential projects, with prominent developers building projects there. Moreover, many infrastructure projects like the Multimodal Transit Station, Integrated Freight Complex, and Transport Nagar are in the pipeline, and are likely to transform this region.

Bhiwadi’s proximity to the Delhi International Airport, Gurgaon and Faridabad makes it very attractive to NRIs, who wish to invest in the Delhi-NCR (National Capital Region). This planned township is known as an NRI city. According to a PropTiger Datalabs report, nearly 73 per cent of the residential units in Bhiwadi are in under-construction projects. From the first quarter of 2010 to the first quarter of 2015, the weighted average BSP (base selling price) of apartment units in Bhiwadi have risen from Rs 1,622 to 2,538. (Weighted average base selling price is the average price of apartment units weighted on the number of BHK units)

6-Emerging-Real-Estate-Destinations-For-NRIs2

(The area in white stands for under-construction properties, blue for ready-to-move in properties and pink for the newly launched properties.)

Infographic By Sandeep Bhatnagar

Neemrana (Rajasthan)

Neemrana is another real estate market, where NRIs like to invest in the Delhi-NCR area. The Rajasthan government has proposed many infrastructure and industrial projects here. Neemrana is connected to the Kundli Manesar Palwal expressway, which is under-construction. Like Bhiwadi, Neemrana, too, has many underpriced residential projects because much of the upcoming infrastructure, industrial outlets and SEZs are likely to be completed only in the next few years. PropTiger Datalabs expects appreciation in residential prices to be higher in Neemrana than in Bhiwadi because development of Neemrana is planned more meticulously. Like in Bhiwadi, 73 per cent of the residential units are in under-construction projects.

According to PropTiger Datalabs April 2015 report, in the past two years, primary prices in Neemrana have risen by two per cent. But, this is likely to rise further because real estate investors and NRIs are yet to see the full potential of Neemrana which is likely to grow like its Japanese zone.

Gurgaon (Haryana)

Gurgaon is another emerging real estate market for NRIs. Even though the civic infrastructure in Gurgaon is not developed enough for a city of its scale, it has improved over years. Metro connectivity would rise in Gurgaon very soon, with the number of subway stations rising.

Even though Gurgaon was sidelined in the battle for smart city status, the state government wants it to be one of the two smart cities in Haryana. Among Indian cities, Gurgaon has the third-highest per capita income. The civic infrastructure challenges that Gurgaon faces are common in the initial development phase of any emerging city. NRIs prefer to invest in Gurgaon because they rightly estimate that when infrastructure in Gurgaon improves, the city would emerge as one of the best Indian cities.

Mysore (Karnataka)

Mysore is a city where NRIs in Karnataka are increasingly invest in. There are many residential projects in Mysore that are being developed primarily for NRIs. NRIs in Bengaluru and other cities invest in Mysore because of the pleasant weather. Most NRIs, who invest in Mysore, are from the United States or the Middle-Eastern countries. As real estate investment is rising, now many expect Mysore to emerge as the next Bengaluru. The reason is that many IT campuses are being built here. There are many luxury residential projects in Mysore that cater to NRIs. The city also is closer to Bengaluru and super-fast trains are proposed in the city.

Chennai (Tamil Nadu)

Chennai is considered the leading emerging real estate market for NRIs. Along with Bengaluru and Hyderabad, it is one of the best South Indian cities. The number of IT firms in the city is growing rapidly. The presence of an IIT (Indian Institute of Technology) in the city is a major reason why real estate in the city is attractive. A metro line was recently opened in the city, and in the coming years, this will drive up the price of property in Chennai, especially when metro lines extend to every part of the city. Experts predict that real estate prices in Chennai would rise nearly 15 per cent because of the recently launched metro service.

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