Millennial investors increasingly investing in Indian commercial real estate: Survey
According to a neo-realty survey conducted by MYRE Capital, which analysed the investment appetite of roughly 5,000 NRIs across 13 countries, millennial investors are increasingly investing in Indian commercial real estate. The top three investment hubs for NRIs are Bengaluru, Mumbai, and Pune, where office space remains the most sought-after asset, and school spaces emerge as a new CRE asset.
Passive income for the family, portfolio diversification, lack of other safe alternatives, and tax-efficient returns are among the top commercial real estate (CRE) development factors for NRI investors. According to the survey, CRE is preferred by 53% of NRI investors over ETFs (21%) and mutual funds (19%), with an average ticket size of Rs. 38 lakh (US$ 48,840.37) for an NRI being comparatively higher than that of a resident CRE investor.
Bengaluru, the world's IT/ITES centre, has witnessed a continuous increase in demand from MNCs and has been able to maintain market growth while keeping vacancies in the single digits.
MYRE Capital has launched five properties in the last 12 months, totalling Rs. 175 crore (US$ 22.49 million) in assets under management (AUM). MYRE has a user base of over 30,000 people and investments spread across Pune, Bangalore and Mumbai.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.