4 reasons why NRI should invest in real estate in India

The real estate market in India has shown exponential growth in recent years. Being one of the most lucrative markets India has been on the radar of many (non-Indian residents)NRIs too. With the plethora of options in terms of location, land, and climate, it is easier to choose a place that suits your needs the best. The thriving economy shall render good ROI (return on investment). If you plan to invest, then look at the benefits of investing in India.

 

Here are the various benefits of the economy of India.

 

 

Every year many people move out of India in search of better employment opportunities and educational facilities. These people settle down outside India but always have an eye on the upcoming trends in the real estate market of India. Being aware of the benefits of investing in real estate they always choose to buy properties here in India.

With many new projects and concepts, the real estate of India offers enormous growth opportunities. Urbanization has led to more demand in the real estate market. Also, there are various government schemes to encourage foreign direct investment in India.

Let us discuss 4 main reasons why real estate in India is the best option for NRIs to park their hard-earned money.

 

 

 After the opening up of the economy ever since 1991, various government schemes were introduced for the NRIs to steer investment into India. The NRIs receive an indexation benefit for properties held in India. This means that this immovable asset if held for more than 2 years is treated as long-term capital. They will have simplified taxation at 20%. They are also given certain tax deductions under articles 80C and 80TTA.

 

The payment process has been simplified and with the minimum amount of paperwork now NRIs can invest in commercial and residential properties here. An NRI has to open an NRO (Non-resident ordinary account) to simply pay the seller. SEBI and RBI have formulated various guidelines and policies to encourage foreign investments. Banks in India provide greater interest rates as compared to USA and japan. The USA offers only 2-3%interest rates while japan has negative rates.

 

2.Falling rupee value:

 

With the ever-changing stock market, the rupee value is also changing. A fallen rupee value is beneficial for an NRI for investments in India. They will be able to buy land at a cheaper price with the decrease in the value of the rupee. In the last 10 months, the rupee value has declined from 73.6 to 80.9 with a depreciation of 8.9%.

This has made investments in India more affordable and approachable. The rupee value is expected to decrease further which will increase the purchasing power of NRI. You can buy land worth 80 lakh for 1 lakh dollars but if the rupee would have increased to 74 the same land would have cost 1 lakh 8 thousand dollars. This is the best time for investment and the surplus money will now be saved.

 

 

 The Indian real estate market is a basket of opportunities. It has seen steady growth over the years but when the pandemic hit, the growth was also affected badly. All the economies over the world suffered. Now when things are coming back to normal there is again a substantial shift in the market. The tide has turned and the value of properties is increasing. This is a suitable time for the NRIs to catch the opportunity and invest in India. The Indian economy is expected to be the second-largest economy in the world by 2029.

 

People here now have a mind shift and more and more people have started investing their money into real estate. Your hard-earned money will reap you higher rate of investment in the coming future. With digitization and startup culture, this economy is expected to reach new heights.

 

 NRIs usually have high-class taste and demand for majestic grandeur. They prefer holistic green spaces to relax and grow. The new upcoming projects and flexibility of builders suit the needs of NRIs. They can choose the location and type of building they want according to their convenience. Earlier they were often tricked to pay more but now with the introduction of RERA(Real estate regulatory authority) in 2016, the process has been simplified. Consequently, there is more credibility and transparency in the system. Before beginning a project, every builder has to get all necessary approvals from multiple government agencies and post relevant information on the website set up by their state's RERA regulatory authority. RERA provides many perks to the buyers such as

There are many more advantages that ensure more confidence among buyers. NRIs can now be rest assured that they are not been tricked and can now enjoy the benefits.

See also: Indian Real Estate – How Is It Profitable For An NRI

 

 

 To conclude we can say that there is no hardcore reason for not choosing the Indian real estate market for investments. This booming economy is a right fit for investors who want to grow by leaps and bounds. Traditionally, investors preferred investing in fixed deposits, gold, and equity markets but due to poor returns in these segments, smart people have shifted to the ever-growing real estate sector. Especially for NRIs, the perks of the Indian real estate markets are irresistible so don't wait further and take the plunge for a brighter future.