by THO
Aniket Chawla (named changed), a techie based in the US, recently booked a flat in a luxury complex in north Bengaluru’s Yelahanka area for over ₹3 crore. Sprawling over 2000 sq ft, Chawla intends to keep it as his second home until he returns to India. Today, in his mid-50s, Chawla said he has invested in the asset for his end-use.
Another NRI, Sandeep Shekhar (name changed), has lived on the US East Coast for almost a decade. “Right now, I plan to invest in real estate to diversify my portfolio and buy an apartment in Bengaluru. However, I will be exiting the project in another couple of years after having enjoyed a good rental income at 6% return,” he added.
One of the most important factors encouraging NRIs to invest in Indian real estate is the depreciation of the Indian rupee. A weaker rupee increases the purchasing power of those earning in stronger currencies like the US dollar.
Of all the NRI transactions in Bengaluru’s real estate market, US-based NRIs comprise a major share, real estate experts point out. “Most of my clients aspire to buy a house here and probably move back to India in a few years. Several of my clients book the apartment while they are in the US and fly down only for registration,” Manjesh S Rao, Chief Real Estate Officer at BrokerInBlue, told HT.com.
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US-based NRIs bullish on North Bengaluru’s real estate market
North Bengaluru remains one of their top choices due to its proximity to the international airport. In contrast, real estate experts say parts of the eastern IT corridor of Whitefield and the south are already saturated.
A survey by NoBroker.com showed that North Bengaluru was the most popular investment destination for NRIs, with almost 39.7% investing in the area. This was followed by East Bengaluru, with 37.7%, South Bengaluru, with 18.1%, West Bengaluru, with 3.9%, and Central Bengaluru, with 0.5%.
The highest traction of NRI buyers is in the North, accounting for almost 40% of sales, followed by 38% in the East and 18% in the South.
North Bengaluru started as an industrial area about two decades ago. The development of the Bengaluru International Airport and the Manyata Tech Park led to major NRI interest in micro-markets such as Hebbal, Hennur, Yelahanka, and Devanahalli.
“North has witnessed developments in the last few years, with new infrastructure corridors coming up like the metro line connecting north to the south. The major pull factor is the proximity to the Bengaluru airport, which otherwise takes about 1-2 hours to reach southern or eastern parts of the city,” Sunil Singh, director at Realty Corps, added.
Additionally, real estate experts say the majority of MNCs like Amazon India, SAP Labs, and Wipro have either leased or have started constructing campuses in the north, encouraging more US-based NRIs to invest there.
Upcoming infrastructure, such as the suburban rail, Peripheral Ring Road, and Bengaluru Satellite Town Ring Road, has also increased traction.
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US-based NRIs prefer to invest in gated communities
Almost all brokers HT.com spoke to said that most US-based NRIs are keen to buy apartments in gated communities.
Experts said that young NRIs under the age of mid-40s typically prefer to invest in apartments priced at ₹1.5 to 1.8 crore and some even less than ₹1 crore.
“We also see several NRIs investing in projects priced at ₹3-4 crore. A few also prefer to invest in premium luxury projects worth ₹6 crore and above. These are generally those in their mid-50s or above,” Kumar added.
Several NRIs keen to invest in luxury villas
Local brokers say that 20% to 25% of NRIs prefer to buy luxury villas. “Their share has risen from 10% a few years back to more than 20%. We are transacting several deals with NRIs who have recently returned to India and are looking for a luxury villa upwards of ₹10 crore, typically over 3000-4000 sq ft in size,” Rao said.
Local brokers add that buyers today prefer to invest in a villa to move into a new place or as part of their post-retirement plans. “Most buyers who invest in north Bengaluru are from the hospitality and BFSI segments. Buyers from the IT sector prefer to invest in the eastern part of town as it is close to the IT corridor,” Rao added.
Experts say villas have long been marketed as lifestyle products. In these, the buyer not only owns the housing unit but also the land on which it is constructed, making them an attractive investment for US-based NRIs.
