US NRIs Real Estate Investment dip but Bangalore retains top slot

Delhi Central - Thursday, February 16, 2012 5:44:25 PM

The impact of economic slowdown has been increasingly felt on the overall demand pattern among US NRIs while investing in real estate back home. However, Bangalore continues to remain the favoured destination for investment in housing. But as the quantum of demand has dipped over the years an estimated 45 per cent of the US NRIs wish to seek home loans while investing in residential property across the country.

In a survey conducted during the 2-day property show held in Edison and Santa Clara during November 12-20, southern cities drew more demand for investment in real estate. In bay area alone, Bangalore continues to remain as the favoured destination for techies as chances of re-employment are better in the city for returning NRIs.

Other cities that show keen interest among NRIs include Ahmedabad, Pune, Delhi, Gurgaon , Mumbai, Hyderabad and Kochi. Among tier III cities that are driving demand specific mention must be made about Mysore, Mangalore, Vishakhapattinam and Coimbatore in south. Incidentally the level of interest for investment in Ahmedabad is up especially with the state receiving more foreign investment for infrastructure projects leading to better yield for investors.

Unlike earlier, demand for villas has surged with a significant number of visitors evincing keen interest to invest in villa projects in southern cities. Other categories of properties for which demand continues include office space, developed plot and retail units. A majority of the US NRIs are looking for professionally managed property management companies to manage their properties during their absence in India.
The availability of guaranteed rental income properties has generated much interest due to minimal financial outgo and the flexibility to offset EMI payment against rental income every month. As developers are keen to manage such properties for the initial years, NRIs show keen interest to invest in such properties.

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