Posted on 16th October 2018 Author: Planet Homes
The depreciation of Indian rupee against the US dollar is prompting non-resident Indians (NRIs) to invest in the Indian real estate sector. The RERA (Real Estate Regulatory Authority) regulatory environment had brought transparency and consolidation on part of real estate developers, making property purchases easier and valuable for Indian buyers across the globe.
Generally, NRIs buy properties in India for investment purposes. Other reasons include emotional connection with their country, family and for settling back in India, once they retire. Returns from real estate investments in India have consistently performed well as compared to other investments.
Here are 5 reasons why real estate in India is turning attractive for NRIs:
1. Additional Income
NRIs have an additional power to invest in Indian real estate properties because of their additional income. The Indian rupee is hovering near 73.82 against the US dollar since the past one week. So, buying property in India has garnered more interest. It is more beneficial to NRIs because they get more square feet of space for the same amount in foreign currency. After buying properties in India, till the time they don’t return, they can earn additional income by renting it out for personal or commercial purposes.
2. Home Loan
The Indian real estate market offers several benefits to NRI's for both residential and commercial properties. The RBI has given a general permission to banks and housing finance companies registered with the National Housing Bank to provide loans to NRIs who are interested in buying residential property in India. The cherry on the icing is the tax exemption benefits given to them for investing money in Indian real estate property.
3. Return on Property
As compared to other investment options, real estate provides a large return on investment (ROI). Because of high ROI, many NRIs from Dubai, the United States or the Middle East are more interested in settling down in India. Prime locations include Thane, Karjat, Kalyan, and Chembur, to name a few in Mumbai. NRI’s are more attracted towards commercial and residential real estate, which is a different kind of investment and which offers good capital appreciation. Boom in employment opportunities, lifestyle options & technologically advanced social & civil infrastructure are a few reasons why certain localities are high in demand, adding to their societal property value.
4. Attractive Prices
Earlier, luxury residential homes were the driving forces for NRIs to buy homes in India. But with increase in purchasing power, this trend seems to be changing. They are buying properties, keeping in mind the high returns on their long-term investment plans in the real estate. Low residential prices and more incentives on the properties in the form of discounts are prompting the buyers to invest property in India, be it a luxury property or a fair-priced property.
5. Regulatory Norms
The new regulatory norms have brought transparency and accountability on part of real estate developers which results in more investments in the Indian real estate market. Home buying is regaining traction and RERA has made it better. In this situation where property prices at primary level are down by 10 to 15 percent, it is a scenario where the NRI buyers are taking more interest to buy commercial and residential properties in India.
If you are a non-resident Indian (NRI) and planning to buy a property in India, time could not have been a better time for you to do so.