High Networth Individuals (HNIs) and Non-Resident Indians (NRIs) prefer to make real estate investments in India’s metropolitan cities. The metros are the preferred realty destinations for this category as the returns are high and there is advanced social and economic infrastructure that makes investments profitable. Moreover, searching for properties is easier in metros because of the presence of various property management services that take care of every aspect of home searching/buying on behalf of the person thousands of miles away from India. Interestingly, Bengaluru is a top choice for HNIs and NRIs. It is the most desirable city for them.
Out of the many reasons that have made Bengaluru the preferred choice for HNIs and NRIs, the growth of the IT sector is a significant one. The city is home to a large number of IT giants such as Oracle, Microsoft and Google. Due to their presence along with numerous others, Bengaluru has quickly become the land of opportunities. This has played a crucial role in boosting real estate growth in Bengaluru. If you compare other asset categories, the real estate sector in Bengaluru is the least volatile. Hence, it offers maximum confidence to big investors. Added to that, the cosmopolitan culture is a major draw.
Moreover, the real estate growth in Bengaluru has witnessed a steady appreciation in property prices. Due to the presence of low-interest rates, HNIs and NRIs can generate fund locally, made easy by the short to medium-term returns on investments. Both investors and end-users find Bengaluru rapid infrastructural development and hassle-free connectivity impressive. While affordable housing is set to gain widespread popularity across the nation, the luxury housing segment is still the most dynamic and vibrant segment in Bengaluru. These premium properties enjoy well-developed social infrastructure, proximity to IT hubs, top educational centres and world-class healthcare facilities.
The budget range depends a lot on the areas an HNI or NRI is selecting. Areas such as Whitefield, Sarjapur Road, Kanakpura Road, Kengeri and Nallurgalli are favoured most by first-time home buyers. Luxury properties in north Bengaluru are highly favoured by the NRIs and HNIs, though these areas are not located centrally. Again, the robust infrastructural developments, excellent connectivity and easy access to the international airport have proved to be the game-changers for Bengaluru. Malleswaram, Sadashivanagar, Shanthala Nagar, RMV Extension and Rajajinagar have a massive stock of luxury properties.
The real estate market in Bengaluru is seeing a tremendous rise in urban population because of the demand from the IT sector. Flats are the most supplied property type with 59 percent availability. Plots and independent houses are the other two areas where buyers are finding good options. Young IT professionals prefer apartments as the availability of land is a problem and rates are on the higher side. However, the premium section of home buyers, the NRIs and HNIs, often face a dilemma when choosing properties. Even if they have the knowledge of budget, they hardly have the knowledge about the supply in particular areas of the city.
NRI investments in real estate are primarily driven by long-term fundamentals, such as emotional connect, better returns and yield on investments, safeguarding retirement plans and depreciation in rupees’ value. The introduction of RERA has also been a major boost as NRI and HNI investors are investing in luxury apartments with renewed confidence. The transparency brought in by RERA and Bengaluru developers’ performance in delivering as promised have made property buying for HNIs and NRIs easier and hassle-free. Investment enquiries from this premium segment have started going up.