Puravankara, a leading real estate developer in India, is strategically focusing on attracting non-resident Indians (NRIs) based in Dubai, capitalizing on the growing interest among this demographic in investing in property in India, particularly in Chennai. This weekend, the company is hosting a special event in Dubai to showcase its diverse range of projects to prospective buyers, aiming to connect with NRIs looking for opportunities to invest in their home country.

Surge in NRI Deposits

A notable factor driving NRI interest in real estate investments is a significant increase in their deposits, which soared by **84.4%** from **$6.40 billion** to **$11.8 billion** between April 2023 and February 2024. This dramatic increase has attracted the attention of developers like Puravankara, as it reflects a clear and growing interest among NRIs in securing properties that they can return to, underscoring a broader trend of investing back into their home country. Abhishek Kapoor, Group CEO of Puravankara, emphasized that this surge indicates a "definite interest" in real estate as a stable investment vehicle, particularly in cities like Chennai, where the market is robust and evolving.

Market Dynamics

Experts suggest that rising real estate prices, coupled with geopolitical uncertainties, may prompt NRIs to reconsider their investment strategies, shifting their focus from Dubai to Indian cities, including Chennai, Bengaluru, Pune, and Hyderabad. The Indian real estate market is increasingly perceived as a safer and more stable option, offering better capital protection compared to the conflict-prone regions of West Asia and the more volatile real estate markets in the US and Europe. Chennai, in particular, is gaining traction due to its growing infrastructure, IT hubs, and quality of life, making it an attractive destination for NRI investments.

Enhanced Buyer Support

In response to this growing interest, Puravankara is enhancing its offerings by providing comprehensive post-sales support tailored specifically for NRIs. This includes assistance with loan facilitation and financing options that cater to the unique needs of overseas buyers. Additionally, the company is offering customized interior design services, making the purchasing process not only more manageable but also more appealing for those considering investments in Chennai’s vibrant real estate market. By providing these services, Puravankara aims to simplify the experience for NRIs, who may face challenges due to distance and differing regulations.

Diverse Property Portfolio

The company plans to showcase a diverse portfolio of properties during the event, including **1-5 BHK apartments**, luxurious penthouses, spacious villas, and plots, with sizes ranging from **600 to 5,000 sq ft** across five major cities, including Chennai. This extensive range is designed to meet the varied preferences of potential buyers, ensuring that there is something for everyone in the market. Whether looking for a compact apartment or a sprawling villa, NRIs will find options that align with their lifestyle and investment goals. This diversity not only caters to different budgets but also addresses the preferences of families, professionals, and retirees.

Positive Outlook for FY25

Puravankara remains optimistic about strong demand for real estate in FY25. The company's annual report highlights expectations for a synchronized global economic rebound in 2025, driven by anticipated rate cuts from Western central banks later in 2024. Such improvements are likely to enhance capital flows and stimulate private investment, particularly in rapidly developing cities like Chennai, where infrastructure projects and urbanization are on the rise. The developer anticipates that this positive economic climate will bolster the real estate market, making it an opportune time for NRIs to invest.

Growth in Luxury Segment

The luxury real estate market in India, including Chennai, has seen remarkable growth, with sales of properties priced at **₹4 crore** and above increasing by **75%** in FY24. This upward trend is accompanied by rising prices for high-end homes, making this segment particularly attractive for NRIs looking to invest in premium properties. Many NRIs are drawn to luxury offerings in Chennai due to the city’s cosmopolitan lifestyle, excellent amenities, and cultural richness. A recent analysis from Jones Lang LaSalle emphasizes that Indian micro-markets, including those in Chennai, present promising long-term investment opportunities, further encouraging NRIs to consider high-end investments.

The COVID-19 pandemic has also shifted demand towards larger living spaces—a trend that Puravankara reports has continued post-pandemic. The emphasis on spacious homes reflects a broader change in buyer preferences, with many looking for homes that offer comfort, privacy, and modern amenities. This has resulted in strong sales volumes at a ten-year high, despite inflationary pressures and rising interest costs.

Urbanization Trends

Looking ahead, Puravankara projects that India’s urbanization rate will reach **40%** by 2030, further driving demand for residential properties. This trend is especially relevant in Chennai, where urban development, improved infrastructure, and a booming job market are attracting more residents. The increasing urban population will inevitably raise the demand for housing, presenting ample opportunities for developers and investors alike.

In addition to its event in Dubai, the Bengaluru-based developer is preparing for a qualified institutional placement (QIP) aimed at raising between **₹700-800 crore**. In its recent financial results for Q1 FY2024-2025, Puravankara reported a consolidated net profit of **₹15.44 crore**, marking a significant turnaround from a net loss of **₹17.16 crore** during the same period last year. This performance underscores the company's recovery and growth trajectory in the competitive real estate market, particularly in regions like Chennai, where demand continues to rise.