Record number of Indians migrating to OECD countries signals growing NRI investment potential in India’s property market

Mumbai: The Indian diaspora’s growing presence in OECD countries, particularly in the UK, US, and Canada, is set to provide a major boost to India’s real estate market. A surge in the number of Non-Resident Indians (NRIs) migrating to these countries is expected to fuel a significant rise in their investments in Indian properties. According to the latest data, a record-breaking 5.6 lakh Indians migrated to OECD nations in 2022, marking a 35% jump compared to the previous year. This uptick in migration is poised to have lasting implications for the Indian property market as NRIs look to invest in their home country.

India’s Migration to OECD Countries Hits Record Levels in 2022

2022 saw a historic number of 5.6 lakh Indians migrating to affluent countries like the US, UK, and Canada. This figure accounts for 6.4% of all new immigrants to OECD countries, solidifying India’s position as the top source of migration. The surge in migration is attributed to a combination of factors including labour opportunities, education, and citizenship pathways.

Despite global shifts in immigration policies, the UK, US, and Canada remain the preferred destinations for Indian migrants. The UK saw a near doubling of the Indian migration rate, with 1.12 lakh Indians making the move in 2022. Similarly, the US recorded 1.25 lakh Indians, a 35% increase from 2021. However, Canada’s numbers dipped slightly, with 1.18 lakh Indians migrating, marking an 8% decrease from the previous year.

NRI Investments to Boost Indian Real Estate

As the number of Indians migrating abroad continues to grow, the financial impact on the Indian real estate sector is becoming increasingly significant. With a substantial increase in their earnings abroad and the potential for long-term settlement, NRIs are likely to turn to the Indian property market for investment.

The real estate sector, which has already seen increased interest from NRIs, stands to benefit further from this migration surge. Many NRIs invest in residential and commercial properties back home, with a particular focus on metropolitan cities and emerging urban centers. The growing NRI population will likely create a continued demand for luxury homes, office spaces, and real estate developments, providing a much-needed stimulus for the industry.

A Global Trend of Changing Migration Patterns

While India continues to dominate the migration charts, other countries such as Russia have also seen notable increases in migration flows. In 2022, 2.6 lakh Russians migrated to OECD countries, pushing Russia up the ranks of major source countries. The International Migration Outlook 2024 report highlights these changes, underscoring the shifting dynamics in global migration trends.

Despite these global shifts, many OECD countries are tightening immigration policies, which could impact future migration flows. The incoming US administration is expected to introduce stricter immigration controls, particularly in work visas, while Canada has announced plans to reduce its immigration targets for the next three years. Similarly, the UK has introduced more protectionist policies, including higher wage thresholds and reduced lists of shortage occupations.

Rising Demand for OECD Citizenship

Another noteworthy trend is the increase in the number of Indians acquiring OECD citizenship. In 2022, over 1.9 lakh Indians gained citizenship in OECD countries, a 40% increase from the previous year. This surge was particularly evident in Canada, where the number of Indians becoming Canadian citizens tripled to 60,000.

As more Indians gain foreign citizenship, they are expected to further strengthen their ties with India, often choosing to invest in property as a means of securing their future in both their home and adopted countries. The rising number of NRI citizens in the West, coupled with their growing wealth, will likely lead to a steady flow of investments into India’s real estate sector.

Real Estate and NRI Investment on the Rise

The combination of a growing NRI population and an increase in migration to OECD countries presents a significant opportunity for India’s real estate market. As more NRIs acquire foreign citizenship and secure higher incomes abroad, their investment in Indian real estate is expected to rise, providing a much-needed boost to the industry. With government policies in key destination countries tightening, the prospects of long-term investment in India remain strong, further solidifying India’s position in the global real estate landscape.