Rising geopolitical tensions in the Middle East could eventually drive more non-resident Indians (NRIs) to invest in homes back in India, according to Mallanna Sasalu, CEO–South at Puravankara Ltd. Speaking to NDTV Profit, Sasalu said while the ongoing crisis is unfortunate, it could lead some overseas Indians—particularly younger professionals—to consider buying property in India as a long-term safety net.
“Global developments are beyond our control. What we can do is respond to them. From an Indian developer’s perspective, this could turn out positive,” Sasalu said. He noted that many NRIs have historically invested heavily in Gulf real estate markets such as Dubai. However, geopolitical uncertainty could prompt some to reassess their investment choices.
“For us, NRIs contribute around 12% of our total sales. People ultimately need a home, and home is here in India,” he said.
NRI Interest Yet to Pick Up
Sasalu clarified that the company has not yet seen a surge in inquiries following the recent developments, but expects sentiment to evolve over time as the situation stabilises.
“At this point people are still under shock. But once things settle, many may start thinking about having at least a base or a home in India,” he said. He added that the shift may be more visible among younger professionals in their 30s who are still deciding where they want to eventually settle, rather than those already firmly established overseas.
Puravankara is also looking to tap NRI demand through projects such as a large upcoming development in Kochi, which could attract overseas buyers.
Raw Material Costs May Rise Slightly
Sasalu acknowledged that volatility in crude oil prices could lead to moderate increases in construction costs, as petroleum-linked inputs influence transportation, logistics and several building materials.
However, he said the impact is unlikely to significantly disrupt project execution. “Prices may move up a little because many materials depend on petroleum products. But it’s not at a level where we need to rethink our operations,” he said.
AI Job Fears Overstated
Addressing concerns that artificial intelligence could reduce hiring in the technology sector—and potentially dent housing demand in IT-heavy southern cities—Sasalu said such fears are exaggerated.
“In the short term there may be some disturbance, but technological shifts usually create more jobs than they destroy,” he said. He pointed to strong office leasing activity as evidence that demand for workspace—and by extension housing—remains healthy.
According to Sasalu, while property prices may not see the sharp gains recorded between 2022 and 2024, they are likely to remain stable and grow slightly above inflation over time.
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