Young NRIs spend big on Indian property

Young Indian expatriates in the UAE now account for a majority of property purchases in their home country.

NRIs in the UAE aged between 18 and 35 account for 43 per cent of investment in Indian real estate, says a study conducted by Sumansa Exhibitions, organisers of the Indian Property Show.

The 17th edition of the biannual show will be held from December 1 to 3 at the Dubai World Trade Centre and feature over 170 Indian developers.

Sunil Jaiswal, president of Sumansa Exhibitions, said: "The trend has been strengthening in the past decade. While earlier, we would see older people planning and saving to buy property, today more young people want to solidify savings in the real estate market.

"They also have a very good understanding of the financial gains associated with realty and other options of home leasing and loans. Moreover, the combination of a two-income family and more affordable homes has been a significant factor."

Mumbai, Bengaluru and Pune are still the most popular Indian cities for property investment. Hyderabad and Chennai have gone up in the popularity charts. In 2014, Hyderabad was the eighth most popular city but it has climbed to fifth place in 2015. Chennai has jumped one place from fifth to fourth position.

Apartments remain the popular choice for investment, with 78 per cent investors opting for it.

Participating developers include big names such as Lodha Group, L&T, Mantri Developers and Sobha, among others.

There has been rising demand for budget and mid-range property, with 45 per cent of participants aiming for homes in the range of Rs500,000 to Rs5 million.

Seventy per cent of survey respondents plan to buy property within six months while 55 per cent of investors are looking at property for personal use. For 20 per cent of participants, the investment would be their first foray into real estate.

There will be free seminars, including one on taxation, during the first two days of the event. The sessions will help NRIs investing in Indian property understand issues such as repatriation of funds, rental tax, capital gains tax, gift tax, etc.

Visitors can also attend free seminars on Know your city, NRI guide to property investment in India, Vaastu, Taking care of legal angles and South India's residential real estate hot spots.