Best Cities for NRIs to Invest in Real Estate
NRIs often hear stories about investors hitting the jackpot buying and selling property at home. Very often, they also hear about someone who has lost money on a project that never materialized or where problems arose that made the property impossible to sell.
Eager to bag a slice of the pie, the NRI begins researching how to invest in the Indian market from abroad and which city to begin with, only to get lost in conflicting sources.
It is a fact that the Indian economy is expanding rapidly; in fact, the World Bank projects that India will overtake China as the world’s fastest-growing large economy by 2017. For those looking to become real estate investors who want to participate in India’s growth, choosing which part of the country to buy can be a challenge. After all, the economy may be making big strides at the national level, but what forces are at work locally? In other words, which city or cities can promise the most benefits?
We have compiled a list of the best cities for real estate investment. Some of these are large metropolitan areas, known to be the hub of many industries. Others are smaller and closer cities that show a lot of promise in their population growth rates and per capita income, among other factors. Read on to identify which city may be the best to invest in real estate.
Thanks to its combination of rapidly growing population, high paying jobs and low real estate prices, the center of India’s IT industry has also become the center of its real estate investment. JLL recently published its annual ranking of the world’s most dynamic cities, in its City Momentum Index, stating that Bangalore is the fastest changing city on the planet.
By some estimates, 40 percent of India’s IT industry is based in this metropolis. These changes have made it the most attractive place in India for real estate investment. A recent survey pointed to Bangalore as the top real estate opportunity in Asia-Pacific.
All of this makes Bangalore the most desirable place for real estate investment in India.
Pune has shown rapid population growth over the past decade with a growth rate of over 30% during this period. The average white collar salary in this city is second only to Bangalore. Currently, property in this city is affordable compared to other cities, which shows that it is a good time to invest.
The city also benefits from being close to Mumbai. It also offers opportunities in the education, IT, automotive and engineering sectors. This is another example of a previously slow city that has seen rapid growth and recent change.
Good weather throughout the year is an added benefit for NRI investors here. A new international airport and increased metro connectivity will bring even more growth and positive change to the city in the coming years.
Head to the capital of Tamil Nadu to find even more real estate investment opportunities. Chennai is also in the leading group, with a high population growth rate (30%) and reasonably high average wages. This industrial city also has many companies offering financial and IT services.
The government has made road connectivity a priority here in recent years. This has helped the city and its surroundings develop faster and attract new business opportunities.
A looming monorail and elevated rail line is sure to further help with this connectivity.
In terms of population and area, Visakhapatnam (Vizag) is one of the largest ports in India. Because of this, it is considered the commercial center of Andhra Pradesh.
A rapidly growing IT industry coupled with good infrastructure makes this city a desirable location for real estate investment.
With the first phase of the Vizag Metro Rail scheduled to be completed in December 2018, transportation options will also open soon in this city.
As a growing city with modern urban development, Mumbai is a good real estate investment option for a non-resident Indian who cares about lifestyle.
Considered the financial capital of India, this city is hard to beat when comparing the level of infrastructure with other cities. Aim for a premium property in an upscale neighborhood to get the best return on your investment. There are several upscale hotspots in Mumbai that put you close to high-end retail stores and restaurants.
As the financial center of India, Mumbai also attracts many investors and corporate companies, which provides many job opportunities. If you want an internationally competitive work culture, this is the city.
Mumbai has excellent educational facilities, including international schools. Political stability and easy resale options are additional incentives to make Mumbai your real estate investment location.
As the third largest industrial center in India, Bhiwadi is a manufacturing hub for some major companies. Companies like Gillette and Honda guarantee many local job opportunities.
Real estate projects are also cheaper here than in other cities. The affordability right now makes this a great long-term real estate investment option.
The Indian government has proposed projects in Bhiwadi, including a new high-speed public transport. This will make this city even more desirable for years to come.
Kochi, the commercial center of Kerala, has seen new real estate prospects thanks to recent changes.
An improvement of the seaport and the privatization of the local international airport brought new business prospects.
Many NRIs are already investing in Kochi. In fact, only about 30% of real estate investors in Kochi are local.
Part of what makes this city so attractive is its recent infrastructure developments. New planned developments include the Vallarpadam International Container Transshipment Terminal, which will expand investment opportunities for this port city.
An “oceanarium” or marine research facility that doubles as a tourist attraction is another proposed project that is sure to bring even more opportunities to the area.
8. Bhubaneswar and Cuttack
These twin cities in East India are growing centers of education and IT. This drives real estate development in the area.
The real estate market is well regulated here, as most of the available land is still owned by the government.
Plans for new commercial projects, a wider highway and the new Kalinga Nagar Industrial Complex add to the reasons for targeting Bhubaneswar and Cuttack for real estate investment.
The second largest city in Tamil Nadu has a stable industry revolving around textiles and spinning.
Engineering, information technology and manufacturing have joined the industry in Coimbatore in recent years, providing economic growth and increased job opportunities.
The planned expansion of the airport will increase the ease with which travelers and business opportunities can enter the city. And a proposed bus rapid transit system provides additional options for ground transportation.
There is a long list of cities in India that offer great opportunities for real estate.
You can choose a major and established center like Bangalore, or a newer and growing location like Kochi. It all depends exactly on what your future plans are for your investment.
With so many cities experiencing rapid developments and offering new opportunities, it is hard to go wrong when you consider the key factors to select cities of choice for real estate investments.
Don’t be intimidated by the real estate investing process. Instead, reap the benefits that the next few years will have for real estate investments in India and take advantage of the wave of economic growth in India.
Have you invested in any of these cities? Share your experience with us in the comment section below!