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India Real Estate Show 2022: Seven cities that will give UAE NRIs best returns
Property demand in India’s Tier 2 cities growing fast as professionals move from Tier 1 cities due to work-from-home culture
KT photo/Shibab
Properties in India’s Tier 2 cities are seeing stronger demand as professionals working in Tier 1 cities are moving to their hometowns in Tier 2 cities due to the work-from-home culture that emerged after the outbreak of the Covid-19 pandemic.
While speaking at the India Real Estate Show 2022 in Dubai on Saturday, Indian developers showcasing their projects at the exhibition revealed that Tier 1 and Tier 2 cities such as Jaipur, Mumbai, Pune, Chennai, Delhi, Noida, Gurgaon and others can offer the best returns to non-resident Indians and investors from the UAE.
“Since the Covid outbreak, professionals working in Tier 1 cities are going back to their hometowns in Tier 2 cities. Since their packages are the same as Tier 1 cities, they’ve good savings and are buying properties there. Post Covid-19, people are looking for open and green spaces, they do not want cluttered places and Tier 2 cities offer that exactly,” said Vaibhav Malik, deputy manager for sales at Shubhashish Homes.
He added that in India, people generally see one per cent appreciation per month because of inflation and other factors. “Of late, the cost of construction has gone up 10 to 15 per cent so people who invested at the right time, by default, they have achieved 10-15 per cent returns.”
It is estimated that India’s real estate sector will reach $1 trillion value by 2030, accounting for nearly 20 per cent of the country’s GDP.
As a result of strong growth in the real estate sector, Malik added that many fresh organised players are coming into the game.
Cities that offer the best returns
He added Jaipur, Mumbai, Pune, Chennai, Delhi, Noida, and Gurgaon can offer the best returns to the UAE-based non-resident Indians (NRIs) looking to invest in India. “Investors will see a better appreciation in their property values if they invest in these cities because the real estate sector is seeing a boom after Covid. Depending on the location, average return in Tier 1 and Tier 2 cities is from 10 to 20 per cent,” he added.
He added that people are upgrading their homes as the savings of upper-middle-class people who gone up and they were not much impacted by Covid-19.
“People who bought 2BHK are now buying 3BHK and those who were buying 3BHK are now purchasing 4BHK. People have more savings due to Covid and the pandemic has affected the lower middle class and not the upper middle class,” he added.
Depending on the location and product people are buying, Pavan Kumar, business head for GCC and International Markets at Puravankara, said generally top five cities – Pune, Mumbai, Bangalore, Hyderabad and Kochi – will offer a double-digit return to investors and NRIs.
“In the last five years, the trend of the market has gone up like anything. Even in times of Covid-19, there was no dip in terms of growth of real estate. That’s how investments have been growing in 2020 and 2021. Therefore, we have launched so many projects in the last quarter,” he added.
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