NRIs in the Gulf are showing keen interest in Indian real estate industry. But why?
After a period of rapid growth, India's property market is showing signs of price stabilization, creating a potential window for NRI investors in the UAE and Gulf. While affordable housing faces supply constraints, luxury options dominate new developments. Improved financing options and fractional ownership opportunities are also influencing NRI investment decisions as market dynamics shift.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Indian expats in the UAE and Gulf may find this a timely moment to invest in the Indian property market, as major cities show signs of slowing price growth after three years of rapid gains. High demand from local buyers had previously created strong competition for Non-Resident Indians (NRIs), but market dynamics are beginning to shift, according to a report by Gulf News.The change is prompting many NRIs in the Gulf to re-evaluate whether to invest in Indian real estate or explore property purchases locally in the UAE. 'More than ever, Gulf's NRI buyers are worried whether it makes any sense to buy or build a costly home in India and have it rented out or kept vacant,' said a property advisor.Another deciding factor is education. Expats increasingly base new home purchases in India on whether their children are pursuing higher studies in the country. Meanwhile, city markets are tightening, especially in the affordable and mid-range segments. 'Several cities – including Mumbai , Pune, Hyderabad, Chennai, and Delhi-NCR – are now facing a genuine crunch in entry-level inventory,' said Azaz Motiwala, founder of Ikon Marketing Consultants to Gulf News. 'This supply tightening is most evident in the affordable and mid. segments, where steady demand is not being matched by fresh launches.'While cities like Bengaluru and Hyderabad posted modest 5% price increases in early 2025, they remain below the double-digit gains of previous years. Overall, price growth in most metros has slowed to single digits.On the investment front, NRIs are also showing interest in fractional ownership of commercial properties, especially in the Rs 1 million to Rs 2.5 million range. These investments are reportedly yielding 8–10% annual returns, according to Anarock.Mortgage rates have also begun to shift in favor of buyers. 'Leading banks in India have reduced their lending rates by 5–10 bps in May 2025 (from the peaks in mid-2024),' said Owen. 'However, loan demand is not linked solely to interest rates – overall sentiment, which is significantly influenced by the geopolitical environment, also plays a big role.'Luxury and ultra-luxury housing continue to dominate new supply. 'Driven by steady demand, luxury and ultra-luxury homes – priced from Rs 15 million – dominated new supply in Q1-25 with a 42% share,' Owen added.With prices cooling, financing improving, and supply shifting, NRIs may find new opportunities in India's evolving real estate market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
24 minutes ago
- Time of India
hilton: Finding top talent: Hospitality sector demand seen at 600-1,000 GMs in five years
ADVERTISEMENT ADVERTISEMENT NEW DELHI: On days, even the early bird can have a tough hunt. Ask Atul Dangayach . Managing director of the eponymous group , he has kickstarted an earlierthan-usual search for two general managers to run his upcoming properties in Bengaluru.'It's getting harder to find the right general managers, especially for large luxury assets,' said Dangayach. The group owns properties run by chains such as Marriott International , Accor and Radisson Hotel Group . It will launch Hilton 's first Waldorf Astoria hotel in India as well as a Raffles hotel in Goa. 'The industry has grown so rapidly and traveller preferences are so evolved now— talent has not been able to catch up,' he said. 'It's also a tough and demanding role, and not everyone's cut out for it.'Industry insiders said rapid expansion by hotel chains over the next five years is likely to create demand for 600-1,000 new general managers, or heads of hotels. Dilip Puri, founder and chairman of the Indian School of Hospitality, refers to it as the GM conundrum.'The dearth of general managers is likely to be felt across segments,' said Puri, who works with chains such as The Leela Palaces, Hotels and Resorts and Cinnamon Hotels & Resorts in Sri Lanka on training general managers. 'Considering changes in technology and consumer behaviour, brands are sometimes promoting candidates for failure, as many are not equipped with the required skill sets.'Natwar Nagar, founder of The Job Plus that works on skilling hospitality candidates, pegs the requirement at about 1,000 over the next five years. 'Attrition has also gone up,' he said, adding that there have been lateral movements in hospitality as well as to other sectors, such as real estate, and commercial facility senior general managers from Marriott shifted to full portfolio roles this year. The company declined to comment on their replacements and the potential demand for new talent. Another cluster general manager at a luxury chain has moved to a real estate major's hospitality division. Multiple former general managers now hold CXO-level roles at real estate firms, while a former general manager is the India head of an international Indian hospitality sector is on the brink of a decisive general manager deficit, especially across luxury, upper-upscale and upscale segments, said Neha Garg, founder director of Red Kite Consulting. 'We estimate 660–800 general managers will be required across all branded segments over the next five years,' she said. 'Within luxury and upper-upscale segments, demand could exceed 100 new general managers, which does not include succession or replacement demand.'If the industry does not proactively nurture talent, there could be a shortfall in the coming years, especially in fast-growing segments and emerging markets, said Nikhil Sharma, managing director and chief operating officer, South Asia, at Radisson Hotel Group. 'We have been strengthening our talent pipeline to ensure we have capable general managers ready as new hotels come online,' he Saxena, senior vice-president and regional head, South Asia, for Hilton, said talent is going to be the single largest priority for hotel chains. 'The industry is likely to double its operating hotel supply in the coming years, and as an industry, we need more qualified general managers to manage and run our hotels and deliver world class quality,' he will need about 50-60 new general managers over the next three years, said Vineet Mishra, vice-president, operations, for India and South Asia at the chain. 'While the existing talent is strong, a potential shortfall could definitely surface in future years particularly within tier II-III cities, where operational difficulty accompanies an ever growing expectation for adherence to brand standards,' he said.
Time of India
31 minutes ago
- Time of India
Haryana charts green path: Markets with organic produce soon
Gurgaon: The city, along with Hisar, will soon have a dedicated organic produce market. The new initiative will see the city hosting a specialised market focusing on organically produced staples, including wheat, rice and pulses. Hisar will feature a dedicated market for organic fruits and vegetables, creating a comprehensive ecosystem for natural and organic produce in the state. A key highlight of the announcement includes financial assistance of Rs 20,000 per farmer for branding and packaging of natural farming products. The govt will also establish testing laboratories offering free services to farmers to ensure quality control of organic produce. The move aims to encourage more farmers to adopt organic farming methods. The announcement, aimed at promoting sustainable agriculture, came during a World Environment Day programme on Thursday, even as Haryana chief minister Nayab Singh Saini spoke about the state govt's "commitment to eco-friendly farming practices". Saini said, "To ensure fair pricing, a dedicated committee will be formed under the Haryana Farmers' Welfare Authority to determine the rates for natural and organic produce." The scheme is expected to provide organic farmers with direct access to consumers and create a structured marketplace for chemical-free agricultural products. A senior govt official said, "The establishment of these specialised markets is part of govt's broader vision of promoting sustainable agricultural practices and addressing growing consumer demand for organic products." The govt has also introduced measures to support landless farmers. In Kaithal district's Pundri block, 53 acres of agricultural department land will be leased through auction to farmers practising natural farming. Additionally, each village will reserve 10% of panchayat land (or a minimum of one acre) exclusively for natural farming by landless farmers. The govt will also provide financial incentives, including Rs 3,000 per farmer for purchasing storage equipment and a substantial subsidy of Rs 30,000 for native cow purchase, supporting the natural farming ecosystem.
Time of India
32 minutes ago
- Time of India
MP positions itself as hub for wellness & spiritual tourism
Ujjain: Riding on the spiritual appeal of the Mahakaleshwar Jyotirlinga—visited daily by nearly 1 lakh devotees, Madhya Pradesh is stepping up efforts to position itself as a hub for wellness and spiritual tourism, with Ujjain as the focal point of investor interest. Tired of too many ads? go ad free now State govt showcased land banks, polices and investment opportunities in the state to investors. Leading stakeholders held one-on-one discussions with chief minister Mohan Yadav, exploring opportunities worth thousands of crores in tourism and wellness infrastructure at the Wellness and Spiritual Conclave held on Thursday. Highlighting growing interest from national hospitality chains, Mukund Prasad, director at Leisure Hotels Group, said the company is actively expanding into Madhya Pradesh after acquiring land parcels in Kanha and Pench. The group is now exploring Ujjain and Omkareshwar for spiritual and wellness tourism projects. "The state policies are highly supportive and officials are responsive to the needs of promoters. The govt is encouraging investors to combine luxury tourism with wellness, and the group is planning to invest around Rs 200 crore, as wellness development heavily depends on quality infrastructure," said Prasad. Spiritual institutions too have shown keen interest in MP's sacred landscape. Swami Chaitanya Hari, founder of Yoga Nisarga and Vedic Yoga School, said his group is exploring tranquil locations along the Narmada Parikrama and Kshipra river regions to establish wellness centres and ashrams. "These areas offer a spiritually rich and naturally serene environment, ideally suited for holistic healing and yoga-based practices," said Hari. Apart from infrastructure, investors also emphasised the importance of rooting wellness in local culture and resources. Tired of too many ads? go ad free now Shubham Agnihotri, vice chairman of the Taiwan India Ayurveda Association, stressed that Madhya Pradesh's wealth of herbs, tribal wisdom, and nutrition-based biodiversity should be integral to the wellness ecosystem. "Local farmers must be included in the supply chain for sourcing food and herbs, ensuring that wellness tourism is both sustainable and authentic," said Agnihotri. The influx of spiritual tourism has also triggered large-scale interest from the real estate and hotel sector. CREDAI Ujjain president Mahesh Paryani said demand for hospitality infrastructure is growing rapidly. "Around ten major hotel chains have already tied up for projects in the city and are expected to begin operations by the next financial year. These hotels are expected to invest over Rs 3,000 crore," he said.
