The expensive real estate market in Hyderabad is driving NRIs to explore other options for investing their money, and they have found a viable alternative in Texas. According to a report in TOI, many NRIs are now purchasing land in popular Texas cities like Dallas and Austin instead of investing in the real estate market in Hyderabad.
The price difference between land in Hyderabad and Texas is significant. In Hyderabad, the price of an acre of land ranges from Rs 40-50 crore, whereas in Dallas and Austin, it is priced between USD 500,000-700,000 (equivalent to Rs 4-6 crore). This stark difference in prices makes investing in Texas a more affordable option for NRIs.
Apart from affordability, NRIs are also drawn to Texas due to the similar weather conditions to Hyderabad. The US state is known for its warm climate, which resembles that of Hyderabad. This similarity adds to the appeal of investing in Texas for NRIs.
Furthermore, Texas is witnessing a rise in the presence of major corporations in and around its cities. Tesla recently relocated its headquarters to Austin, and Toyota’s US headquarters is also located in the state. The massive development and lower land prices in Texas attract NRIs who see the potential for growth and better returns on their investments.
In contrast, Hyderabad is ranked as the second most unaffordable real estate market in India, according to Knight Frank’s Affordability Index for 2023. The high home loan to income ratio in the city contributes to its unaffordability. Despite this, Hyderabad remains a popular choice for NRIs, with a significant percentage of NRIs residing in the US, Canada, the Gulf, Europe, etc., still preferring housing units in Hyderabad.
However, the trends are expected to change in the near future as NRIs explore alternative options for investing their money with better returns. The availability of land in Texas at relatively lower prices compared to Hyderabad is emerging as an attractive proposition for NRIs looking for investment opportunities.
In conclusion, the expensive real estate market in Hyderabad is pushing NRIs to seek alternatives, and many are turning to Texas as a viable option. The affordability, similar weather conditions, and promising business environment make Texas an attractive choice for NRIs looking to park their money and secure better returns on their investments.