How Singapore NRI’s Are Influencing The Indian Real Estate Panorama


How Singapore NRI’s Are Influencing The Indian Real Estate Panorama

Every year, half a dozen trade shows relating to properties in India take place in Singapore.

This number is, if anything, small for the demand of Indian properties that exists inside of the Expat community in Singapore, which represents 9 percent of the population of the country and is responsible for a total yearly investment of around 1 billion U.S dollars.

A matter of comparison.

It’s no secret that India and Singapore have for a long time been intimately related, a relationship that has lead to a profound settling of the Indian diaspora in a country that, with a population of under 6 million, still represents significant opportunities for some.

Before, we’ve written about the catalysts and motivations behind the ever-growing NRI investments in Indian Real Estate.

In the case of Singapore, however, it’s important also to add two factors to the equation: income and proximity. The former makes it easier for NRI’s to purchase properties in India that point out to grow as investments that will also serve as homes for their time of retirement, while the latter makes all of the regular problems NRI’s face when trying to invest in India less of a hassle for them.

We don’t exaggerate when we say that, in comparison, is much more comfortable for an NRI in Singapore than for a person in India to buy properties. Comparatively, the expats rule out the residents by the following numbers:

  • In average, a person living in Singapore will make 22 times more than its Indian counterpart.
  • Purchasing power in Singapore is 17 times greater than in India.
  • An average NRI will receive a starting salary of $5,000, which would be difficult to encounter even at high professional levels in India.

So, why is the money going to India?

Putting the differences between the two countries in perspective, it’s important to understand why NRI’s in Singapore still prefer to invest in India (contributing close to 14% of the total foreign investments in 2016), and how they do it.

Singapore contributes around 1/9th of the total NRI real estate investment (projected to reach $60 billion this year) from a position where, while still complicated, proximity makes for lesser struggles when it comes to buying and selling Real Estate.

This proximity, on the one hand, eliminates the significant difference of time zones, as well as the long trips that NRI’s in the U.S and U.K have to endure to make deals in India while using traditional media to sell to or buy from a local. It also accounts for the highest rate of buy-to-rent properties from all the nations that directly contribute to Indian Real Estate, as closeness provides a greater sense of security.

On the other hand, perhaps the most overlooked advantage NRI’s in Singapore have as investors are the access to a significant community of Indian real estate investors that both contributes actively to the market and has the resources, connections, and interest of moving forward with negotiations. With the Indian government empowering of NRI’s coming forwards as one of the most significant trends in real estate in India, there’s no doubt we’ll promptly see an eruption of trade between expats in Singapore, which will undoubtedly account for a significant share of the projected growth in investments all over the end of this decade.

With all conditions seeming to go in favor of NRI’s in Singapore, in the end, it wouldn’t be strange to expect that the percentage of investment from this tiny country goes up in the future, especially as builders (and developers) continue to cater to NRI’s.

Are you an NRI from Singapore that’s looking for property to buy in India, or even to sell? We invite you to check our platform, Reobee, where you can find exclusively other NRI’s close to you to make deals.

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