As per Hindustan Times, non-metro cities are becoming the new hotspots for real estate investors. In recent years, Tier 1 cities have seen 28% growth in real estate while Tier 2 cities witnessed a growth of 42%. This is majorly because of affordable housing in Tier 2 cities and lower cost of land and construction. On the other hand, for metro cities like Mumbai and Gurugram, overcrowding of houses and the steep rise in prices are moving people slowly away from these areas. So to help you discover your future home in these emerging markets, here is a list of the best cities in India for investment by NRIs.
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Best cities in India for Investment by NRIs:
1. Goa
NRIs are increasingly investing in Goa, mainly because they want a second home where they can unwind and be away from the bustle of metros. Plus, it’s closer to nature and a popular vacation destination among millennials, making it easier to avail rental and property management services. Another interesting fact to note here is that since Goa is popular among millennials as a vacation destination, the average age of a buyer has reduced by a few years in the last decade because of significant demand from the youth.
2. Rishikesh
Buying a house in this city does come with certain pros and cons, but people are now turning to Rishikesh for buying a home to set up apartments and bed-and-breakfast establishments. These homes offer a personalised, homely experience with rustic interior designs to attract lodgers. Most of them register on popular mobile apps like Airbnb to ease the lodging experience, making it one of the most profitable and best cities in India for investment by NRIs.
3. Bhubaneswar and Cuttack
As per the Economic Times, twin cities Bhubaneswar and Cuttack are among the fastest-growing IT and educational hubs in the east. This has drastically boosted real estate development in the areas. As most of the land is government-owned, the real estate market is well-regulated and an ideal destination for NRIs to look for their future homes.
4. Kochi
With the shift of real estate from metros to Tier 2 cities, the South has emerged as one of the most fruitful for NRIs. Kochi is slowly becoming another new IT hub in India, attracting more and more property investors. Also, privatisation of the international airport and upgradation of the sea port has brightened the prospects of the real estate sector in the city. Residential real estate in Kochi has traditionally been driven by NRIs with only 30% of end users being locals. Clearly one of the best cities in India for Investment by NRIs.
Majority of the real estate demand in Lonavala is for bungalows and villas. The price depends on the location, view and area of the property. It has also noticed a healthy price appreciation of about 20-30 percent in the last four to five years. This is primarily due to its popularity among Bollywood celebrities who have invested in homes in Lonavala. It is quieter than Mumbai and Pune and the property options are just as good. Because it is a leading vacation destination, rental returns are higher as well.
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Also Read: Relief to NRIs from the Problem of Double Taxation: Union Budget 2021