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Hindustan Times
14-05-2025
- Business
- Hindustan Times
NRIs bet big on Bengaluru real estate, driven by strong dollar and US visa uncertainty
While domestic buyers continue to dominate Bengaluru's real estate sector, demand from non-resident Indians (NRIs) is on the rise, driven by the appreciating dollar and ongoing visa challenges in the United States, according to Zayd Noaman, president of CREDAI Bengaluru, in an interview with He said that the appreciating dollar has rendered Indian real estate investments increasingly attractive to NRIs, particularly those with a long-term investment horizon. "In recent years, we have seen a noticeable increase in NRI participation, driven by the appreciating dollar, making Indian investments more appealing, especially for long-term prospects," Noaman said. He noted that uncertainties surrounding US visas have prompted many NRIs to place greater trust in India's long-term growth story. "Amid the current uncertainty in the US, we anticipate that once the situation stabilizes, capital will start flowing back into India," Noaman remarked. Noaman expressed optimism about the potential positive impact on Bengaluru's real estate market, driven by increased NRI investments. However, he cautioned against the possibility of a sharp rise in property prices from current levels. Despite the inevitable shifts in global geopolitics, factors such as Trump-era tariffs are not perceived as significant challenges for the Indian real estate sector. Instead, the industry's primary focus should be on fostering innovation and leveraging technology, he said. With a stronger emphasis on local manufacturing, the government's Atma Nirbhar Bharat initiative is poised to strengthen the real estate sector and bolster the broader economy in the long run, he said. Also Read: Affordable housing: Bengaluru's ₹50 lakh homes now worth ₹2 crore; ₹1.5–3 crore is the new sweet spot, says CREDAI chief Noaman said that Bengaluru provides a comprehensive ecosystem for the tech industry, encompassing education, a robust talent pool, and ample opportunities for the real estate sector. He noted that most real estate buyers in Bengaluru are salaried professionals, with a significant number relying on home loans. "The majority are employed in IT companies or in roles that support the tech industry. As apartment prices continue to climb, we are also seeing growing interest from CXOs and business professionals, particularly those linked to the technology sector," he said. Regarding housing sales, Noaman noted that Bengaluru witnessed a slight decline in sales during the first quarter of 2025 compared to the previous year. Unlike the fast-moving consumer goods (FMCG) sector, real estate is highly dependent on regulatory approvals and compliance, which can lead to delays in project launches. He pointed out that last year's multiple elections also slowed down the approval process. Currently, Bengaluru has one of the lowest levels of unsold inventory among major cities, with just 2–3 years' worth of supply available in the market. Noaman said that as older inventory gets absorbed, and if new approvals are expedited, the supply situation is likely to improve.
Hindustan Times
14-05-2025
- Business
- Hindustan Times
Affordable housing: Bengaluru's ₹50 lakh homes now worth ₹2 crore; ₹1.5–3 crore is the new sweet spot, says CREDAI chief
The definition of affordable housing has evolved, especially in Bengaluru, where a ₹50 lakh house from 10 years ago can now cost ₹2 crore due to inflation. Homes priced between ₹1.5 crore and ₹3 crore are now considered the sweet spot for volume and sales, Zayd Noaman, president, CREDAI Bengaluru, told "Due to inflation, a ₹50 lakh home a decade ago could cost ₹2 crore now in Bengaluru. Salaries have increased, and the ₹1.5–3 crore range is now the sweet spot in terms of volume and sales in cities like Bengaluru today," Noaman said. Noaman noted that over the past two years, Bengaluru has seen significant growth in both volume and property prices. This surge in capital values is driven by the city's strong fundamentals, including a robust tech ecosystem, quality education, and a deep talent pool. Also Read: Credai Bengaluru president advocates for Mumbai-style redevelopment to tackle land challenges Noaman said that within the city centre, land is both scarce and costly, making it hard to acquire for residential use. For housing projects in prime zones to make economic sense, he said the development has to be of a special grade to justify the rent or sale price. "Improved infrastructure can pave the way for larger township developments on the outskirts of Bengaluru, but better connectivity is key to making them viable. For people to consider moving further out from the city centre, the government needs to prioritize expanding metro connectivity and improving road access," he said. Also Read: In Bengaluru, drones now deliver groceries and medicines to residents in under 10 minutes On Bengaluru's real estate potential, Noaman said that the city's radial layout leaves ample agricultural land on the outskirts. 'While central areas are saturated with limited and costly land parcels, the outer zones still offer opportunities for large-scale development—provided the infrastructure, especially metro and road connectivity, is improved to make these areas more livable,' he said. However, Noaman believes that the city is not yet oversaturated in terms of real estate demand, but property prices have increased significantly. "Today, the average ticket size ranges between ₹3–4 crore, with homes in areas like Whitefield typically priced around ₹2.3–3 crore. As a result, buyers are taking more time to make purchase decisions. In 2025, housing price growth in the city is expected to be in line with or slightly higher than average inflation," he added.
