More young expatriates planning to buy property in India: Report

Forty-three per cent of UAE-based Non-Resident Indians (NRIs), between ages 18 and 35 years, are more inclined to buy property back home, a new survey reveals.

“This trend has been strengthening in the past one decade. While earlier, we saw older people planning and saving to buy property, today more young people want to solidify their savings in the real estate market,” Sunil Jaiswal, President, Sumansa Exhibitions, company which conducted the survey, said.

“They also have very good understanding of the financial gains associated with realty and many more options of home leasing and loans than their parents did. Moreover, the combination of a two-income family and more affordable homes has been a significant factor. There is also the fact that investing in real-estate gives the youth a sense of achievement, security and economic well-being”.

Nearly 8,632 NRIs across the UAE participated in the survey that is conducted ahead of the Indian Property Show, which will be held from December 1 to 3, 2015, at Dubai World Trade Centre.

Binoy Kumar, 30, who has been working in Dubai for the past one year as a chartered accountant, said: “I have already decided to buy a property in India this year as I can benefit from the weak rupee. Besides, being here, I can try to save and repay my housing loan at the earliest.”

The survey further revealed expats were showing growing interest in cities such as Hyderabad and Chennai.

Hyderabad, placed eight on the list of most popular cities in 2014, climbed to fifth position this year, with more NRIs looking to buy budget-friendly homes. The top three slots, however, continue to be Mumbai, Bangalore and Pune, respectively. Chennai jumped one place from fifth to fourth position.

A trend noted among the educated NRIs is that up to 40 per cent of their disposable income is set aside as savings or for the purpose of investments back home in India.

The survey found 55 per cent of investors looked at property for personal use, while 20 per cent of participants said they were first time real-estate buyers.

Seventy per cent of participants were planning to buy property within six months with 45 per cent saying they were looking to buy a property between Rs.500,000 and Rs5 million.
 

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