Most NRIs buy homes for personal use

More non-resident Indians (NRIs) are looking to buy property back home for personal use rather than from an investment perspective.

According to a survey conducted by Sumansa Exhibitions, organisers of the biannual Indian Property Show in Dubai, 43 per cent of respondents opted to invest in Indian real estate so they could make a profit out of it, as compared to 57 per cent who were buying property for personal use.

Out of these, 22 per cent of NRIs are buying property for the first time, while for 21 per cent, this was an additional investment.

While Mumbai and Bengaluru continue to be the most popular Indian cities to invest in, Mangalore has now joined the list of top 10 favourite real estate destinations for NRIs in the UAE.

"Close proximity to Bengaluru has given the city a strategic advantage," said Srividya Rajan, general manager of corporate sales and brand engagement, Sumansa Exhibitions.

The survey also found that apartments continue to remain the popular choice of property. Also, 75 per cent NRIs in the UAE are looking to purchase property up to Rs100 lakh and more.

Around 61 per cent of NRI buyers are opting for finance when buying property, a four per cent decrease. Higher returns on investments is one of the main factors driving NRIs to park funds in Indian property.

"An increasing number of Indians are looking to park their wealth in Indian real estate because they foresee lucrative returns on investment. At a time when the rupee has depreciated against the dollar, many investors feel the time is ripe to lock their savings in Indian property, before prices escalate," Rajan informed.

The Indian Property Show will be held at the Dubai World Trade Centre from June 2 to 4.

- deepthi@khaleejtimes.com