Non-resident Indians (NRIs), including those in the Gulf, are rapidly opting to invest in commercial property in India, marking a shift from the previous trend of NRIs investing in residential assets back home, according to the chief executive officer for Anarock Property Consultants' GCC business, Shajai Jacob.
Jacob said the new investment behaviour was being driven by better capital appreciation and higher rental yields from Grade A commercial assets in India’s commercial centres, such as Mumbai, Bangalore, Delhi, and Chennai.
Commenting on the trend, associate vice president of AFS Infrastructure, Gaurav Passi, explained: "The big-ticket size of commercial properties [required an] initial investment of $215,000 to $432,000.
"That is why we are seeing a large number of NRIs from the US and UK, besides the Middle East, also investing in this segment.”
According to a report by Construction Week's sister title Arabian Business, the Gurugram area in Delhi-NCR has turned into a major destination for NRIs seeking commercial real estate investment opportunities.