Prashant Vermaa Business Blog

Alibaug, just a short drive from Mumbai, is rapidly transforming into one of the top investment hotspots for NRIs. With the Mumbai Trans Harbour Link (MTHL) promising seamless connectivity across the Mumbai Metropolitan Region, interest from the Gulf diaspora has surged, particularly in holiday homes that combine lifestyle appeal with future capital appreciation.

For instance, Dubai-based couple Vaishali and Vishal Sawant recently invested in a holiday home at Balibaug in Alibaug. “Alibaug’s development is remarkable; improved connectivity is set to make it a prime investment hub. Compared to global markets, India offers significant cost advantages,” they said.

Similarly, another couple from Dubai, Pardeep Sharma and Nupoor Bharadwaj, highlighted that their Bali-inspired home not only serves as a serene retreat but also as an asset with strong rental potential. “The tropical theme attracts vacationers, ensuring steady income. It’s both a private paradise and a sound financial investment,” they added.

Developers Capitalizing on NRI Demand

At the India Property Show 2023 in Dubai, Pushpam Group’s Managing Director, Dr. Sachin Chopda, expressed enthusiasm over the NRI response. “Holiday homes are increasingly gaining traction as an investment choice among expats in the Gulf,” he remarked. Chopda revealed that 80% of the first ‘Balibaug’ holiday home offering in Alibaug was already sold out, thanks to upcoming projects like the MTHL and Navi Mumbai Airport which will redefine connectivity for the region.

Industry sources estimate that Alibaug could soon witness investments worth ₹3,000 crore, with about 250 acres earmarked for phased development, including luxury villas and integrated townships. Developers such as Hiranandani, House of Abhinandan Lodha, and Pushpam Group have already entered the market with resort-style projects.

The Growing Role of NRIs in Indian Real Estate

According to NoBroker.com, NRIs made up 10% of India’s real estate investments in 2019–20. This share has since risen to 15% and is projected to reach 20% by 2025. Saurabh Garg, Co-founder and Chief Business Officer at NoBroker.com, noted a 35% annual increase in NRI residential investments, with sales doubling in just two years.

The pull is largely affordability compared to global markets. Gulf nations lead this wave, followed by Singapore, the US, and Australia. Demand is strongest in Bengaluru (29%), followed by Mumbai (24%), Chennai, and Hyderabad.

Luxury Lifestyle Meets Investment Potential

Holiday home projects in Alibaug are designed to blend luxury and leisure — from private pools, gardens, and open showers to terrace Jacuzzis and sloping roofs. They also include amenities such as restaurants, gyms, banquet halls, spas, and landscaped party lawns, creating year-round rental opportunities for investors. Properties range from lavish sea-facing apartments to sprawling villas with private beach access.

Celebrity investments have also boosted the buzz. Cricketer Virat Kohli and actress Anushka Sharma purchased an 8-acre land parcel in Alibaug last year. Construction is already underway on their 20,000 sq. ft. luxury residence after necessary permissions were secured.

NRI Confidence and Market Growth

Reports from 360 Realtors show that NRIs invested $13.1 billion in Indian real estate in FY21, with inflows growing 12% to $14.9 billion in FY22. “NRIs are one of the critical growth drivers post-RERA. Many are not buying for self-use but purely as an investment,” said Ankit Kansal, Founder & MD of 360 Realtors.

Niranjan Hiranandani also confirmed that nearly 25% of purchases in his portfolio are by NRIs. “Since property ownership is restricted in Gulf countries, Indians are increasingly looking at India as their investment hub,” he explained.

A survey by fintech platform SBNRI found that 53% of NRIs believe India delivers better returns compared to other global destinations.

Emotional Bonds Driving Investment

The Gulf News India Property Show recently hosted more than 40 Indian developers alongside financial institutions and prospective buyers, underlining the growing NRI interest in Indian real estate. Garg summed it up: “The surge is fueled by factors such as rental yield, rupee depreciation, favorable policies, and the resilience of India’s property sector. But beyond financial reasons, emotional ties to India are a major driver for NRIs.”