Where do UAE-based NRIs prefer buying property in India?

Though property prices in Mumbai rose by 66 per cent in the past four years, UAE-based non-resident Indians (NRIs) still favour investing in the city’s real estate market over other places in India.

Mumbai, the financial capital of India, has remained the favourite amongst property buyers with 31 per cent of NRIs showing interest in buying property in the city in the next three to six months, according to a survey conducted by Sumansa Exhibitions, organisers of Indian Property Show.

“Despite being a 'highly un-affordable' place, even for the upper middle income group back home, Mumbai has become a top choice for non-resident Indians (NRIs) in the UAE for investment in property,” said Sunil Jaiswal, CEO, Sumansa Exhibitions.

The huge upward swing in Mumbai property prices is based on its location, proximity to places of work and upcoming projects like Eastern Freeway project and Monorail.

With 22.63 per cent vote, Bengaluru took the second slot, gaining five per cent from the last survey, with Chennai coming third with 17.92 per cent vote.

Pune was placed fourth place with 15.35 per cent vote and Delhi, actually falling two places, from third to fifth with getting only 10.23 per cent vote.

Around 14,000 NRIs in UAE participated in the survey.

Navi Mumbai, Kochi, Gurgaon, Hyderabad and Coimbatore were amongst cities voted for property purchase.

A recent report by Jones Lang LaSalle India said that Mumbai residential property appreciated by about 66 per cent during the last four years. Thane and Navi Mumbai districts saw steeper increase in property prices compared to Mumbai, growing by 70 per cent and 74 per cent respectively.

"Residential property prices in Mumbai have increased steadily after the correction seen after the Lehman debacle. In the period from the second quarter of 2009 to the same quarter in 2013, residential real estate prices in Mumbai have increased by 66 per cent,” JLLM said.

In December, Om Ahuja, Chief Executive Officer – Residential Services, Jones Lang LaSalle India, told Emirates 24/7: “One has to look at the key market triggers to identify the right markets.”

And these critical triggers are: Existing infrastructure readiness; execution/implementation timelines for new infrastructure initiatives; demand for commercial space in the market (leading to job creation); social infrastructure and price trends.

After factoring all these five aspects and considering them against the current market environment, the top six cities for property investment were then:1. Hyderabad 2. Bangalore 3. Chennai 4. Pune 5. Noida, 6. Navi Mumbai.

Indian Property Show is scheduled to be held from June 20-22 at Dubai World Trade Centre.

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