With the growing focus on maintaining a healthy lifestyle, residents are now opting for houses that are closer to nature. In such a scenario concepts such as Biophilia, practical luxury, home automation, hybrid spaces, are gaining interest.
Over the years, the property market in India has grown exponentially, making the country one of the fastest growing economies in the South Asian region. There has been an increase in confidence among the homebuyers, owing to increased transparency and clarity post-implementation of RERA, GST and Housing for All by 2020. This was followed by the stability in prices and reduction of GST on under-construction residential projects over the last few quarters. According to a report by KPMG and Google, around 78 percent of NRI respondents prefer real estate over other asset classes because of the pride of owning a property back in their country of origin.
With the growing focus on maintaining a healthy lifestyle, residents are now opting for houses that are closer to nature. In such a scenario concept such as Biophilia, practical luxury, home automation, hybrid spaces, are gaining interest. There has been a soar in investments in high-end luxury residential properties in the past years due to these upgradations and compliance to international standards in the real estate sector. In the current market scenario, both, commercial and residential realty continues to hold immense potential as it is at the forefront of the IT, e-Commerce and start-up sectors in the country. The inclination is mainly due to amplifying urbanisation, opening up of the FDI route for retail brands in India.
Technological tools such as google apps as well as virtual and augmented realities (VR/AR) play a crucial role in changing the market dynamics of the country. A number of startups in the Indian real estate market are making 'Search & Discovery' process easier for those who are looking to invest while some of them are making the entire transaction smooth and painless. Furthermore, the movement in the exchange rate of the rupee versus US dollar in 2018 has further tilted the balance in favour of investment in the Indian market and NRIs have latched on to the opportunity with both arms. The change in the currency rates has come at a time when the dust was settling in the Indian real estate market after some necessary tumultuous reforms were made by the government. Thus, rupee depreciation makes the best excuse for NRIs to invest in Indian real estate, as the cost of acquisition of property becomes lesser for NRIs.
In the last three to four quarters, there has been a steady rise in the demand for not only luxury projects but also for affordable/mid-segment projects mainly due to easy affordability, relatively lesser risk and better rental returns along with gradual price appreciation especially in key markets like Mumbai where a lot of infrastructures is taking shape. By 2022, when India celebrates the 75th year of Independence, NRI investment in real estate sector, according to estimates will be around 30-35 per cent of total NRI remittances.
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