Best Time for NRIs to Invest in Indian Real estate
Amid several changes and shifts in the domestic real estate market, trends show that investment by NRI’s in the Indian real estate sector is on the rise. While NRI investment in Indian real estate is not something new, there is a change in the preference of NRI investors: NRI investment in real estate appears to lean more toward properties that yield higher returns.
What Makes India the Right Investment Destination for NRIs?
India enjoys being a country that leads in a younger population while also experiencing a fairly good overall growth. The global economic liberalization initiatives taken two decades ago have started paying rich dividends. India has been attracting global investors in all the modern sectors. Considering the potential for the next phase of the growth course, India has emerged as a lucrative and secure investment hub in the contemporary world, especially in the real estate segment.
NRI investment in Indian real estate has been gaining momentum, especially encouraged by the diverse range of property segments throughout the Indian cities. The depreciating Indian Rupee, the protection offered by RERA, and the real estate industry moving toward becoming an organized sector are a few of the key factors that make NRI investment in real estate profitable and attractive.
Key Reasons Why it is the Right Time for NRI Investment in Indian Real Estate
The post RERA and GST period are generally considered beneficial for NRI investment in Indian real estate in the long-term. The following are a few of the factors that drive increased NRI investment in real estate in India:
1. The introduction of RERA has been instrumental in reducing buyer’s risks significantly. This has not only enhanced the customers’ sentiments but also provided a secure investment option to the NRIs.
2. Exclusive discounts are extended to NRIs in the residential as well as commercial segments. This renders investment in India more desirable.
3. The launch of Real Estate Investment Trusts (REITs) has made investments in office properties more attractive for NRIs.
4. There has been a significant drop in the prices of properties post demonetization in India. This—coupled with the fact that the recent policies such as RERA and the GST structure have rendered the market more equitable—has made investment prospects excellent in India.
5. The governmental policies and newly introduced rules have brought in better accountability and transparency, making the Indian real estate sector customer-friendly.
6. The recent slowdown in the real estate sector has impacted the return on investment from residential projects, bringing down the prices. This is one of the reasons why it is the right time for NRI investment in Indian real estate.
7. The current market scenario bodes well for capital appreciation and rental yields, making it profitable for NRIs to invest in the luxury residential segment and commercial properties in India.
8. The dollar getting stronger implies that NRI investors can now purchase more in India than what they could before a few years.
9. The increasing demand for commercial and institutional properties is another alluring factor that attracts more NRI investment in real estate in India.
10. The inventory of Indian properties available for pumping in money is spread across a variety of categories. NRIs can now invest in residential properties, shopping units in malls, logistics spaces, office rooms, and several other commercial spaces.
11. The trend of co-working has been gaining momentum in metropolitan cities, making this an attractive avenue for NRI investors.
12. The stable political dispensation in India and the strong government policies and support assure economic prosperity while providing security from the external threats. Any investment is considered safe in India; NRI investment in Indian real estate is becoming more popular.
Other Factors that Bode Well for NRI investment in Indian Real estate
There has been a noticeable growth in the services industry in the nation since the past few decades, and there’s great potential for further improvement. This is an excellent indicator of the expected demand for real estate, particularly in the commercial, institutional, and residential categories.
Rentals against investments in the residential and commercial properties— not just in the metropolitan cities but tier-II cities as well—have been growing well. All these bode well for the future of the real estate sector in India.
The ‘Make in India’ initiative launched by the government of India demands increased indigenization of various industries. If this fructifies, it will lead to an expansion of the Indian real estate market into untested destinations.
NRI investment in Indian real estate is driven by the emotional connection of NRIs with their motherland. With the RBI facilitating the purchase of immovable properties by NRIs, this is certainly the opportune time for NRI investment in real estate in the Indian sub-continent. The factors such as alluring prices, governmental policies, and chances of future appreciation make NRI investment in Indian real estate a sound investment idea.
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