Global buyers (NRIs and HNIS) find Mumbai property far more attractive than Bengaluru, according to Track2Realty’s Global Buyer Report 2020. Contrary to the brand rating study of Track2Realty, where five out of the top 10 brands have historically been from Bengaluru, when it comes to the choice of wealthy Indians, Mumbai stands as the first choice of investment. Five real estate brands in the national top 10 are from Mumbai, followed by three from Bengaluru and two from the NCR. In terms of the overall rating and ranking, the top 10 national brands in the Indian market in order of preference are: Sobha Limited, Godrej Properties, Prestige Group, Embassy Group, Ashiana Housing, K Raheja Corp, DLF, Sunteck Realty, Oberoi Realty and Piramal Realty.
Top 10 brands voted by NRIs: Godrej Properties, Prestige Group, Sobha Limited, K Raheja Corp, Ashiana Housing, Embassy Group, DLF, Oberoi Realty, Sunteck Realty and Piramal Realty.
Top 10 brands voted by HNIs: Sobha Limited, Godrej Properties, Prestige Group, K Raheja Corp, Ashiana Housing, Embassy Group, DLF, Sunteck Realty, Oberoi Realty and Piramal Realty.
NRIs and HNIs shy away from investing in Indian realty
Nevertheless, a large share of NRIs (non-resident Indians) and HNIs (high net-worth individuals) do not wish to invest in the Indian property market. 78% of them have their own reasons to look towards overseas property markets. The recent woes in the banking sector have further dented their confidence to invest in India. They also feel that property prices in India are too high, compared to the overall value proposition on offer.
Inconsistency in government policies, ever increasing taxation and defaults in the delivery of properties, are making NRIs and HNIs quite apprehensive. NRIs remittances back home are mostly limited to family expenses, than any long-term investment now. Poor rental return has been cited as another reason, to stay away from the Indian property market.
Global buyers, consequently, prefer overseas properties and the top choices for them in order of preference are: Dubai, London, Singapore, Canada, New York, Malaysia, Mauritius, Cyprus, Sydney and Thailand.
Indian cities where NRIs and HNIs prefer to invest
The choices and concerns of the NRIs and the HNIs vary in the Indian property market. They, nevertheless, vote more or less for the same brands, in terms of the developers’ brand equity and overall trust.
In north India, it is not Gurugram but Noida that has emerged as the first choice. Out of the top 10 brands, four are from the Noida market and only two from Gurugram. Interestingly, two Mumbai-based developers have emerged as leading brands in North India and one each from Bengaluru and Bhiwadi also figure in the top league.
The top spots in north India are jointly held by DLF Limited and Ashiana Housing. The other top brands from north India are Godrej Properties, ATS, Mahagun, ABA Corp, Central Park, Sobha Limited, Gulshan Homz and Mahindra Lifespaces.
In south India, eight out of 10 brands are from Bengaluru and the remaining two are from Chennai. None of the Hyderabad-based brands have figured in the top picks of global buyers.
The brand leader in south India is Sobha Limited, followed by Prestige Group, Embassy Group, Brigade Group, Godrej Properties, Puravankara Limited, Akshaya Homes, Total Environment, Mahindra Lifespaces and Salarpuria Sattva.
In west India, Ahmedabad-based Adani Realty is the only brand from outside Mumbai.
The top 10 brands in west India are K Raheja Corp, Godrej Properties, Sunteck Realty, Oberoi Realty, Piramal Realty, Hiranandani Group, Kalpataru, Adani Realty, Mahindra Lifespaces and Shapoorji Pallonji.
The top 10 brands of east India are Ambuja Neotia, South City Projects, Forum Group, Siddha Group, RDB Realty, Srijan Realty, PS Group, Unimark, Shrachi Realty and Mani Group.