India’s Real Estate Market is Booming!
Over the last few years India’s real estate market has been growing at a rate that’s caused two really important things to happen:
- The government has seen this as stepping stone for country-wide growth and therefore has enabled investors from all over the world to enter the Indian property market, which in turn has caused that:
- NRI’s are taking on a greater role in the Indian economy, as these new procedures are allowing them to invest back home while living abroad.
Before, we’ve written about the why’s, the how’s, and the how much's of this situation –and you can read all about it by clicking here (https://reobee.com/blog/real-estate-why-nris-have-been-investing-back-home-for-over-10-years). Today, however, we’ll be taking a closer look at the market situation by talking about where all the actual money is coming from, and what does it mean for you as an investor.
Let’s start with the obvious: Indians are everywhere.
Did you know there are almost as many people of Indian origin living outside of India as there are people in Canada? That’s right: More than 30.8 million people. You can call them Diaspora, Overseas Population, NRI’s, PIO’s or however you like. We like to go with NRI, as it encompasses anyone with an Indian passport that’s living outside of India.
Of course, not every NRI is investing in real estate at all times, but if you take into account the presence of NRI’s in the world’s most developed countries, you’ll see that:
- More than 5 million live in the U.S and Canada
- Almost 4.5 million live in Kuwait, the Arab Emirates and Kuwait.
- 550,000 live in Australia and New Zealand
- Around 1.5 million live in the United Kingdom.
This, in practical terms, means that more than a third of them already live in countries that, with higher salaries and better economies, allow them to start thinking about investing back home, be it for investment’s sake or to secure an excellent retirement back in India in their golden years.
But… How much goes to real estate?
It turns out; population numbers are a pretty good indicator of how much of this money goes back to India in the form of real estate investments. Not surprisingly, the biggest contributors are in the UAE (20% of the total investments), closely followed by the U.S and Saudi Arabia, which together contributed more than 2 billion USD according to this report.
If that sounds like a lot of money, you should also know that projections for the market’s growth are enormous, as we explained here (https://reobee.com/blog/real-estate-why-nris-have-been-investing-back-home-for-over-10-years), and, as most of this money is going to come from NRI’s, you should also know that according to Sumansa Exhibitions:
- Regulation changes and rupee depreciation will probably cause investments coming from the UAE to double next year.
- Only a 55% of NRI’s are buying for their use, and this figure is projected to go down. This means more and more people are buying just for trading or leasing.
- NRI’s are to contribute 11.5 billion dollars to the real estate market this year.
We wouldn’t like to be throwing around facts and figures without a practical, immediate use to them.
Chances are if you’re reading this article you’re already thinking about investing in real estate back in India, or you’ve already done so. Probably you’re also an NRI yourself. And, there’s also a high chance you’re living already in any one of the countries hosting a significant number of NRI’s that are contributing to this market boom.
This all means, whether you’re looking to buy or sell, that there’s also someone like you, real close, looking exactly for what you’re offering. It also means that there’s soon to be a lot of people like that.
Of course, nowadays with the Internet, it’s easier than ever to find them, talk to them, and showcase or look at the property without long flights, long-distance calls and, of course, for free. We have created a platform just for that, Reobee.com.
We hope this information has been useful, and wish you the best of luck finding a perfect opportunity on our platform.
We’ll see you soon with more market insights!
Visit us @ www.reobee.com