Abstract
Purpose - The study aims to explore the role of non- resident Indian (NRI) investors into staggering local housing market and the efforts of developers and regulators to lure such investors.
Design/methodology/approach - Primary data for this exploratory study were assembled through a Google form- based questionnaire circulated over internet among NRIs residing in Kingdom of Saudi Arabia, USA, Singapore and United Arab Emirates, whereas the secondary data sources include the Government of India policy documents, World Bank data, Reserve Bank of India archives and reports published in reputed financial and others print media sources.
Findings - Indian housing market is confronted with a demand and supply mismatch at present. While a massive demand lingers at affordable housing segment, on the contrary, millions of housing inventories are also piling up. Consequently, property developers are attempting to lure the large population of NRIs residing at global cities. Study observes that sentimental attachment to the homeland, higher rate of returns, anticipated rental incomes are the major decisive elements. Additionally, growth in infrastructure, world- class amenities offered by developers, conformity to sustainability and political stability is the other critical reasons.
Research limitations/implications - On first hand, the study outlines a novel kind of foreign investment in Indian local residential real estate that is via NRI channel. Second, non- resident investors might surprise to the property developers and government through a realistic strategic approach.
Originality/value - Probably, the study is first of its type gazing at NRI investors, as a foreign investor, in the local residential real estate.