Apartment Investments In Bengaluru Tops NRI Agenda In 2015
While Mumbai and Bengaluru may be the top choices for NRI investment, it appears that Bengaluru has a clear edge for several factors. Other preferred destinations for smart investments may be Chennai and Pune, Cochin and Delhi, Goa and Ahmedabad though not necessarily in the same order. The survey revealed a lot about NRI intentions. Among the fifteen thousand NRIs surveyed, 45% wished to invest in apartments while 55% wanted the property for self use. The NRIs are young and enthusiastic too with 67% between 31 and 50 years old.
Finally, it is all a question of money, property and people. People wield the money and the power to buy and companies get the properties together. Is it mere individual fancy that decides where the NRI invests? The complex question, of course, depends upon a variety of factors.
It may be easy to understand why Bengaluru is a favorite destination. The cool altitude of 3000 feet, the cosmopolitan culture, the software revolution and the multinational expatriates have created an unmatched scenario where dreams flower well. The pensioner paradise image yet remains in peace and greenery.
World Bank helps with statistics. According to them, $440 billion would be remitted to developing countries in 2015. Don’t forget that India was at the top last year with $70 billion received!
The Dubai World Trade Center will host a 3 day mega property event June 11-13. A large number of 150 developers will exhibit 500 projects and 40,000 properties and so many are willing to invest in Indian urban infrastructure.
PropEquity puts Bengaluru at the top of a report named ‘Top 10 cities in the Indian real estate market,’ replacing Mumbai that finds itself at number eight for 2015. What could be the reasons why Mumbai is not favored any longer? Megacities are difficult to live in with all the population pressure, crime and loss of privacy. Bengaluru may be classified as a metro, but yet maintains that old world colonial charm, a peaceful ambience amidst the roaring traffic and traditional cultural values. Clearly, Bengaluru possesses what Mumbai lacks and NRIs are clever enough to realize that.
With the rupee declining in value, what kind of property does the NRIs wish to buy in Bengaluru? Clearly the choice is in favor of apartments. Bengaluru offers a great choice of apartments ranging from Rs.30 lakhs to Rs. 4 crores. The NRIs consider apartments ‘safe and secure investment’ in a real estate world that is often not what it seems. Among NRIs in UAE, 79% would rather buy apartments and not land or villas. In fact, 72% wish to make the purchase during the next six months and most of the others during the next one or two years. Sumansa Exhibitions has been revealing such statistics.
HDFC bank believes that stable property prices and encouraging rupee returns are bringing NRIs to scout the Indian real estate market in large numbers. Good news for Bengaluru too, that deserves all the attention it is getting after being in the limelight for decades.